A U.S. House committee announced on Monday that it is investigating the Federal Communications Commission’s (FCC) controversial decision to deny SpaceX’s satellite internet division, Starlink, nearly $900 million in rural broadband subsidies.
The FCC had reaffirmed its stance in December, stating that the denial stemmed from Starlink’s failure to meet essential program requirements and its inability to demonstrate the capacity to deliver promised services. This followed SpaceX’s challenge to a 2022 decision regarding the subsidy.
House Oversight Committee Chair James Comer, a Republican, sent a letter to the FCC requesting relevant documents by October 21. The committee is seeking assurance that the FCC adhered to established processes and is not misusing regulatory powers for political motivations. The FCC has acknowledged receipt of the letter and indicated it will respond.
In December 2020, the FCC initially awarded $9.2 billion to over 300 bidders to expand high-speed broadband access, with Starlink securing $885.5 million in a competitive auction aimed at enhancing rural service. However, in August 2022, the FCC decided to revoke this funding, citing speed-test data that indicated Starlink’s performance did not meet the required standards for serving 642,000 rural homes and businesses across 35 states.
Elon Musk has vocally condemned the FCC’s decision, labeling it “illegal.” He asserted last week that had Starlink received the funding, it “would probably have saved lives in North Carolina” during Hurricane Helene.
FCC Chair Jessica Rosenworcel testified before Congress in February, noting that publicly available performance data for Starlink confirmed earlier findings regarding the company’s challenges in meeting basic uplink and downlink speed standards. She added that Starlink’s proposal required subscribers to purchase a $600 dish to initiate service.
Two Republican commissioners on the five-member FCC dissented from the decision, arguing that the agency was unfairly imposing 2025 targets on SpaceX prematurely.
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