"Trying to Expand Rural Internet"... US Cancels $10 Billion 'SpaceX Subsidy'

SpaceX

[Asia Economy Reporter Song Seung-seop] The U.S. government has canceled a subsidy worth 1 trillion won that was to be given to SpaceX. This money was intended to be provided to expand broadband internet services in rural areas.

According to major foreign media on the 10th (local time), the Federal Communications Commission (FCC), the U.S. broadcasting and telecommunications regulatory agency, announced that it will not provide SpaceX with a subsidy of $886 million (approximately 1.1 trillion won). The FCC judged that giving subsidies to SpaceX was not the best approach. Initially, the FCC had tentatively decided to allocate $9.2 billion (about 11.9 trillion won) to 180 companies, including SpaceX, with the purpose of expanding broadband internet services to sparsely populated areas lacking business viability.

SpaceX planned to use the funds for its Starlink project. Starlink is a business that aims to establish ultra-high-speed internet services accessible worldwide by launching 12,000 low-earth orbit small satellites. FCC Commissioner Jessica Rosenworcel explained, “Starlink technology is truly promising,” but added, “The issue was whether to provide nearly $900 million in public subsidies to consumer broadband internet technology that is still under development.”

Additional expenses and speed degradation issues also posed challenges. To use the Starlink service, users must purchase a dish-shaped antenna costing $600 (approximately 780,000 won). The FCC pointed out that between the fourth quarter and the second quarter of this year, the upload speed of Starlink internet dropped below 20 Mbps.

Meanwhile, SpaceX has not issued a statement regarding the authorities’ decision.

This content was produced with the assistance of AI translation services.