Elon Musk's Starlink has $900M rural broadband bid rejected

The Federal Communications Commission on Dec. 12 turned down a Starlink application for almost $900 million in Rural Digital Opportunity funds to bring broadband services to rural locations, including healthcare facilities.

Starlink failed to demonstrate that it could meet the program requirements and deliver the promised service, according to the FCC. The agency said it must be a good steward of limited public funds intended to expand access to rural broadband, not fund applicants that fail to meet basic program requirements. 

"The FCC followed a careful legal, technical and policy review to determine that this applicant had failed to meet its burden to be entitled to nearly $900 million in universal service funds for almost a decade," FCC Chair Jessica Rosenworcel said. 

The Rural Digital Opportunity Fund program uses universal service funding from consumers to expand access to broadband networks in rural areas. It has granted more than $6 billion in funding to bring fiber gigabit broadband service to almost 3.5 million locations in 49 states and the Northern Mariana Islands. 

"The [American Hospital Association] appreciates that the FCC is holding service providers to a minimum standard that guarantees the quality of broadband service being brought to rural locations," Stephen Hughes, AHA director of health information technology policy, said. "Access to quality healthcare in the 21st century requires reliable high-speed broadband connectivity."

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