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Tuesday, October 15, 2024

Comer questions FCC's revocation of $885M subsidy for SpaceX's Starlink

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U.S. Rep. James Comer representing Kentucky's 1st Congressional District | Official U.S. House headshot

U.S. Rep. James Comer representing Kentucky's 1st Congressional District | Official U.S. House headshot

House Committee on Oversight and Accountability Chairman James Comer is investigating the Federal Communications Commission's (FCC) decision to revoke an award for SpaceX's Starlink. The FCC had initially granted $885.5 million in broadband deployment subsidies through the Rural Digital Opportunity Fund (RDOF) to Starlink, a satellite internet service by Space Exploration Technologies Corporation.

Chairman Comer has sent a letter to FCC Chairwoman Jessica Rosenworcel requesting documents and communications related to both the initial decision to award these subsidies and the subsequent revocation. In 2020, the FCC awarded Starlink funds through RDOF as it "is the world’s first and largest satellite constellation using a low Earth orbit to deliver broadband internet capable of supporting streaming, online gaming, video calls," among other services.

However, on August 10, 2022, the FCC rejected Starlink's long-form application for funding due to concerns that it "cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements." This decision has been criticized by some, including SpaceX CEO Elon Musk. He stated that if the award had not been revoked, it could have aided recovery efforts after Hurricane Helene in North Carolina. Musk expressed his views on social media platform X: "Had the FCC not illegally revoked the SpaceX Starlink award, it would probably have saved lives in North Carolina."

The FCC reaffirmed its decision in December 2023, citing that Starlink "failed to demonstrate that it could deliver the promised service." However, this stance is contested within the commission itself. Commissioners Brendan Carr and Nathan Simington have voiced opposition against this decision. Commissioner Carr remarked that this adds to a "growing list of administrative agencies that are taking action against Elon Musk’s businesses," urging that decisions should be based on law rather than politics.

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