Elon Musk’s SpaceX Riles Its Rivals for Broadband Subsidies

SpaceX in the waning weeks of the Trump administration won preliminary rights to $886 million in government backing to provide rural broadband service via Starlink, its system of low-Earth-orbiting satellites. The federal government is now planning a final round of vetting before it bets big that Elon Musk’s technology can help close persistent gaps in US high-speed internet service. The FCC is requiring SpaceX and others in line for subsidies to demonstrate their financial and technical wherewithal to build out a network, and Jan 29 was the deadline for submitting those plans.

Rivals of SpaceX for subsidy dollars are calling on the FCC and its new leadership under the Biden administration to give those plans a closer look, and they are drumming up support for their cause on Capitol Hill. More than 150 members of Congress wrote the FCC on Jan. 19 urging it “to thoroughly vet the winning bidders to ensure that they are capable” and to “consider opportunities for public input on the applications.” The letter, which didn’t mention SpaceX or other companies by name, was subsequently promoted online by two trade groups that have competed for the federal subsidies: the National Rural Electric Cooperative Association and the Rural Broadband Association.