Bringing internet to the unserved around the world has always been the main goal for SpaceX Starlink. It has recently started testing internet service from its many small satellites, and is ready for full roll-out. In order to quicken the rollout of their service they require funding, which they have now been promised. SpaceX has won an $885 million contract in federal subsidies from the FCC to provide high-speed broadband internet to over 5.2 million unserved homes and businesses in rural America.
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There were over 180 bidders who applied for the federal aid to improve internet access, and SpaceX received one of the biggest contracts. As you would imagine, the company will still need to adhere to certain conditions from the FCC in order to receive the subsidies.
Only one other satellite broadband provider was awarded part of the funds – Hughes Network Systems won only $1.8 million and will only serve the small state of Rhode Island. Three companies were awarded larger subsidies than SpaceX, but all of them are traditional broadband providers.
SpaceX Starlink will cover three dozen locations with the allocated subsidies, as per their application. It will take about 10 years to serve all the areas with internet.
The FCC’s Chairman, Ajit Pai, said in a statement announcing the contract winners:
“I’m thrilled with the incredible success of this auction, which brings welcome news to millions of unconnected rural Americans who for too long have been on the wrong side of the digital divide. They now stand to gain access to high-speed, high-quality broadband service.
We structured this innovative and groundbreaking auction to be technologically neutral and to prioritize bids for high-speed, low-latency offerings. We aimed for maximum leverage of taxpayer dollars and for networks that would meet consumers’ increasing broadband needs, and the results show that our strategy worked. This auction was the single largest step ever taken to bridge the digital divide and is another key success for the Commission in its ongoing commitment to universal service. I thank our staff for working so hard and so long to get this auction done on time, particularly during the pandemic.”
