FCC Cancels Internet for 642k Americans

FCC Demands SpaceX Competition

The U.S. government wants competition with Elon Musk’s SpaceX.

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642,000 Americans are still waiting for high-speed Internet.

That’s because the Federal Communications Commission (FCC) canceled a deal with SpaceX to provide satellite internet to rural communities.

The U.S. House of Representatives is now investigating the FCC.

There’s huge demand for additional satellites. One undiscovered company now plans to compete with SpaceX and launch thousands of satellites every year.

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Here’s what happened…

In 2020 the FCC awarded $9.2 billion in contracts to deliver high speed internet to rural communities.

Over 300 companies were issued contracts. This included SpaceX with a $885.5 million deal.

SpaceX planned to use its Starlink network with thousands of low earth orbit satellites to deliver internet to 642,000 households in 35 states by the year 2025.

In 2022 FCC revoked funding for Starlink because “the FCC cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”

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One FCC commissioner named Brendan Carr disagreed with the decision.

Carr claimed that…

Carr argued that the FCC decision encouraged by President Biden as retaliation against SpaceX founder Elon Musk.

Here’s the hypocrisy…

The U.S. government believes that Starlink is a viable source for high-speed Internet.

That’s why the U.S. Pentagon signed a big deal with Starlink to provide secure satellite services for the military. Plus, the Department of Defense is funding the use of Starlink for the Ukrainian military.

The U.S. House Oversight Committee is now investigating the FCC to assure that the FCC “followed established process and is not improperly using the regulatory process for political purposes.”

Starlink offers reliable and affordable high-speed internet.

The FCC’s decision means two things.

First, 642,000 American households and businesses are still waiting to get connected with high-speed Internet.

Second, U.S. taxpayers will end up spending at least 3X more to connect these households with an inferior quality of broadband access.

Satellite internet is the simplest solution to delivering high speed Internet.

The alternative is physically running cable of DSL directly to every home and business in the U.S.

Running new lines to remote locations – underground or on telephone poles – is extremely expensive. That’s precisely why these locations have not yet been connected with high speed Internet.

SpaceX has already launched +5,000 Starlink satellites – creating the biggest network in the world.

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Ian Wyatt