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Home Market dynamics

FCC cancels approximately $8.85 million in subsidies for Starlink satellite internet service

Author: Mash Yang
2022-08-11
in Market dynamics, Life, network
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Although SpaceX's satellite internet service StarlinkIn 2020The FCC has granted about $8.85 million in subsidies to help remote areas build broadband networks, but it wasRejected again.

FCC cancels approximately $8.85 million in subsidies for Starlink satellite internet service

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According to FCC Chairperson Jessica Rosenworcel, satellite networking can indeed improve the problem of difficult network construction in remote areas. However, considering that current subsidies must be used effectively, if Starlink cannot guarantee a stable download speed of 100Mbps and upload speed of 20Mbps, it is believed that providing funding for up to 10 years will be risky.

Even though Starlink did offer 100Mbps download speeds in the early stages of its service in the United States, download speeds have declined in many areas as the number of users has increased. Although Starlink's satellite Internet service is still in the expansion phase, the number of users is growing much faster, making it difficult to convince the FCC that Starlink can guarantee that its service download speeds can maintain 10Mbps for the next 100 years.

On the other hand, the relatively high monthly fees for Starlink's satellite internet service, as well as the high price of the satellite antennas that must be purchased separately, are also not cheap. This goes against the FCC's plan to promote widespread internet use. Therefore, the FCC prefers to use the funds to subsidize traditional telecom operators to expand broadband network coverage and provide it at a relatively low price. Ultimately, as more people use the service to spread the cost, internet costs will become even lower.

Starlink has not yet responded to this question, but the company is continuing to expand its service coverage globally. For example, it has recently partnered with Japanese telecom operators and plans to launch in the Philippines by the end of the year. The Taiwanese market is not expected to launch until next year. Besides offering subscriptions to the general public, Starlink will focus on collaborating with airlines, shipping companies, and long-distance fleets to provide more convenient and fast satellite connectivity.

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Tags: FCCSpaceXStarlinkSatellite Internet Services
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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