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SpaceX’s Starlink to Receive $886 Million From FCC to Improve Rural Broadband

The FCC is giving SpaceX’s satellite internet service, situs slot online, $886 million as part of an effort to bring high-speed broadband to rural America. 

The money will come from a $9.2 billion fund the FCC created to subsidize expanding high-speed internet to underserved rural areas across the US. On Monday, the regulator announced the results of an auction in which telecom providers pledged to provide service to an area at a given performance tier and latency.

Ultimately, the agency awarded the money to 180 bidders. SpaceX was among the big winners; over the next decade, it’ll receive $886 million to supply broadband to 642,925 locations in 35 states. However, Charter Communications will receive the most funding: $1.2 billion to bring high-speed internet to over 1.05 million locations in 24 states.  

The fund is designed to improve internet speeds for 5.2 million homes and businesses used by over 10 million Americans. More than 85 percent of the destinations will receive gigabit-speed broadband, according to FCC. The remainder should get download speeds of least at 100Mbps and uploads at 20Mbps. 

“We structured this innovative and groundbreaking auction to be technologically neutral and to prioritize bids for high-speed, low-latency offerings,” said outgoing FCC Chairman Ajit Pai. “We aimed for maximum leverage of taxpayer dollars and for networks that would meet consumers’ increasing broadband needs, and the results show that our strategy worked.”