HARDBALL: Elon Musk goes after Biden Administration following $900 million SpaceX loss.
The U.S. Federal Communications Commission on Dec. 12 reaffirmed its 2022 decision to reject SpaceX’s application for nearly $900 million in broadband subsidies.
Following SpaceX’s challenge of the initial decision, the FCC said in a statement that Elon Musk’s space company failed to “meet basic program requirements” in its bid to receive funding through the Rural Digital Opportunity Fund program.
The program is meant to expand broadband access in rural areas.
SpaceX’s Starship rocket launches from Starbase during its second test flight in Boca Chica, Texas, on November 18, 2023. SpaceX on November 18, 2023, carried out the second test launch of Starship, the largest rocket ever built that Elon Musk hopes will one day colonize Mars, while NASA awaits a modified version to land humans on the Moon. It comes after a first attempt to fly the spaceship in its fully-stacked configuration back in April ended in a spectacular explosion over the Gulf of Mexico.
The FCC said that, after passing an initial application stage, SpaceX later failed to demonstrate to the agency that it “could deliver the promised service.” The agency said in its statement that funding the request would “not be the best use of limited” resources.
Starlink — I’m a customer — is tailor-made for rural areas. Anyone in its coverage area (that’s pretty much the entire US) with $600 to spend on equipment can have access almost immediately without any wait for someone to lay cable.
You have to figure that cutting Starlink out of Biden’s much-hyped rural access program is nothing but punishment for Musk’s Twitter/X purchase.