In, the US Federal Communications Commission has decided to reject Starlink's application for $886 million in subsidies to expand rural broadband coverage. Starlink "failed to meet program requirements," and the program was too risky, the commission said in a release Wednesday.
"Starlink's technology has real promise, but the question before us was whether to publicly subsidize its still developing technology for consumer broadband -- which requires that users purchase a $600 dish -- with nearly $900 million in universal service funds until 2032," said FCC Chairwoman Jessica Rosenworcel.
Another applicant, LTD Broadband, also lost its subsidy of $1.3 million.
Earlier this year,. Customers pay a one-time equipment fee of $599 for the Starlink satellite dish, and the internet connection costs $110 per month.
SpaceX, Starlink's parent company, didn't immediately respond to a request for comment.