SpaceX and Other Internet Service Providers Asked to Return Money Former FCC Chair Shouldn’t Have Given Them

By B.N. Frank

According to a group of telecom experts (The Irregulators) who filed a lawsuit filed against the Federal Communications Commission (FCC), Americans have been overcharged for decades for telecommunications services that millions still haven’t received. Over the years, Irregulator Bruce Kushnick has written dozens of articles about how the corrupt and “captured” Federal Communications Commission (FCC) made this possible (see 1, 2, 3, 4). Of course legislators made this possible too. Now the current acting FCC chair has accused the previous FCC chair of “mismanaging” taxpayer money.

From Ars Technica:

Ajit Pai apparently mismanaged $9 billion fund—new FCC boss starts “cleanup”

Starlink and other ISPs may have to give up money that Pai shouldn’t have awarded.

The Federal Communications Commission wants SpaceX to give up a portion of the $885.51 million in broadband funding it was awarded in a reverse auction in December 2020.

SpaceX’s Starlink satellite broadband division was one of the biggest winners in the FCC’s Rural Digital Opportunity Fund (RDOF) grants announced in Ajit Pai’s last full month as FCC chairman. Overall, Pai’s FCC awarded $9.2 billion over 10 years ($920 million per year) to 180 bidders nationwide, with SpaceX slated to get $885.51 million over 10 years to serve homes and businesses in parts of 35 states.

Pai apparently mismanaged the auction, as an announcement yesterday from Acting Chairwoman Jessica Rosenworcel’s office said the FCC has to “clean up issues with the program’s design originating from its adoption in 2020.” The FCC cited “complaints that the program was poised to fund broadband to parking lots and well-served urban areas.” The FCC suggested that SpaceX give up its funding in about 6 percent of the census blocks where it’s slated to get money. Other ISPs are being asked to give up smaller portions of their funding.

Pai sent money to wrong areas

The rules that Pai set for the first RDOF auction required funding to go only to census blocks where no providers offer speeds of 25Mbps down and 3Mbps up. A planned Phase 2 auction would target such areas, but the first auction was meant only for places that are completely unserved.

Rosenworcel’s office sent letters to dozens of winning bidders yesterday, suggesting that they voluntarily give up a portion of their funding. The letter to SpaceX stands out for the sheer number of census blocks—about 6,500 in 34 states—where the FCC is challenging SpaceX’s funding. Those 6,500 are among about 113,900 census blocks where SpaceX tentatively won FCC grants.

The letters to SpaceX and other ISPs pointed to concerns “that certain areas included in the Rural Digital Opportunity Fund auction are already served by one or more service providers that offer 25/3Mbps broadband service or otherwise raise significant concerns about wasteful spending, such as parking lots and international airports.”

The letters continued…

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In regard to SpaceX Starlink satellites, numerous experts have warned against launching them as well as other satellites (see 1, 2, 3, 4, 5, 6, 7, 8, 9, 10). Nevertheless, the FCC continues to approve launching them (see 1, 2, 3, 4, 5, 6, 7, 8), whereas earlier this year a moratorium was issued against more satellites in South Africa due to interference issues. More recently, a UK government agency also raised concerns about satellite interference issues with SpaceX and other companies.

Safer, more secure, and more reliable high-speed internet access is possible with hardwired internet connections which Americans have already paid for. Unfortunately, the current acting FCC chair just keeps pushing inferior and toxic wireless anyway (see 1, 2, 3, 4, 5, 6, 7). Tsk tsk.