POLIBIZ – Despite its devastating consequences, storm Helene did one good thing for Elon Musk: it helps bring back the case of Federal Communications Commission’s (FCC) being “legally on then illegally off” with their decision to award Starlink $885.5 million in broadband deployment subsidies 4 years ago.
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The Rural Digital Opportunity Fund (RDOF) is a program under FCC, initiated in 2019 under Trump Administration, aimed at disbursing up to $20.4 billion over 10 years to bring fixed broadband and voice service to millions of unserved homes and small businesses in rural America.
In 2020, the FCC awarded SpaceX’s Starlink $885.5 million through RDOF. However, on August 10th 2022, the FCC rejected Starlink’s long-form application to receive funding through RDOF on the basis that the FCC “cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements”.
In December 2023, the Commission Chair Rosenworcel reaffirmed its decision to deny the award to Starlink, despite objection from FCC Commissioners Brendan Carr and Nathan Simington.
It’s been 4 years since RDOF was launched but it’s not clear how many households have been internet connected through this program.
After Helene hurricane, there was no internet coverage in the affected regions. Elon Musk donated hundreds of Starlink kits, after a conversation with Donald Trump to be immediately installed and resume communication for the storm victims. Later FEMA was said to buy some Starlink kits also.
“North Carolina would have 19,522 working kits available today after Hurricane Helene had the FCC not revoked in bad faith the grant that was awarded to SpaceX as the winning bidder”, Alex – a physics engineer at SpaceX wrote on his X. “Had the FCC not illegally revoked the SpaceX Starlink award, it would probably have saved lives in North Carolina. Lawfare costs lives.”, Elon Musk further noted.
Starlink ‘is the world’s first and largest satellite constellation using a low Earth orbit to deliver a broadband internet capable of supporting streaming, online gaming, video calls’ and more. According to SpaceX, optic fiber technology would cost 10 times more and take years longer than Starlink in the environment of the American rural and mountainous areas.
The House’s Oversight Committee opened probes into this case in a letter to FCC Chairman dated 07th Oct 2024. It’s still unclear how the case would be explained and solved by FCC. If the $885.5 million has been awarded to another contractor already, it would be complicated for FCC, if it may wish to, to revoke the controversial revoke of its own.
