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SpaceX wins $885M for Starlink rural broadband

SpaceX’s Starlink satellite network — which relies on hundreds of spacecraft built in Redmond, Wash. — has been awarded $885.5 million in federal subsidies to boost high-speed internet service to rural Americans.

The awards are part of a $9.2 billion allocation made under the terms of the Federal Communications Commission’s Rural Digital Opportunity Fund Phase I auction.

In all, 180 bidders won subsidies that are to be paid out over the next 10 years. Only one other satellite broadband provider is on the FCC list: Hughes Network Systems, which will receive $1.3 million to serve rural sites in Rhode Island.

The FCC said the RDOF program will provide $222.8 million to support broadband service to rural communities in Washington state. SpaceX is due to get the biggest share of those subsidies, amounting to $80.4 million. Washington also leads the state-by-state list for SpaceX subsidies.

More than 5.2 million homes and businesses are expected to benefit from the program, in which funds were allocated through a reverse auction.

By Alan Boyle

Mastermind of Cosmic Log, contributing editor at GeekWire, author of "The Case for Pluto: How a Little Planet Made a Big Difference," president of the Council for the Advancement of Science Writing. Check out "About Alan Boyle" for more fun facts.

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