---
title: "The Decision of FCC SpaceX had Risks Giving Chinese Providers an Edge"  
description: "Chinese satellite internet providers may gain a competitive advantage from a decision by FCC staffs  to deny SpaceX $885.5 million in rural broadband"  
author: "Siddhi Shaw"  
published: 2022-09-14  
canonical: https://www.mindstick.com/news/1985/the-decision-of-fcc-spacex-had-risks-giving-chinese-providers-an-edge  
category: "space and research"  
tags: ["space science", "science and technology"]  
reading_time: 2 minutes  

---

# The Decision of FCC SpaceX had Risks Giving Chinese Providers an Edge

On **Monday**, **Nathan Simington the FCC Commissioner** has mentioned that the Chinese satellite internet providers may gain a [competitive advantage](https://answers.mindstick.com/qa/116600/branding-and-competitive-advantage-in-the-take-my-class-online-industry) from a decision by **Federal [Communications](https://www.mindstick.com/articles/44489/leased-lines-and-other-tools-for-business-communications) Commission (FCC)** employees to deny **SpaceX** **$885.5 million** in rural broadband subsidies.

```
HIGHLIGHTSFCC staffs denied SpaceX $885.5 million in rural broadband subsidiesSpaceX poised to get $885.5 million to beam satellite internet to U.S. regionsFCC commissioners were urged to review SpaceX's appeal
```

On **Friday**, Elon Musk's SpaceX had challenged the FCC's decision for rejecting its application for funds tentatively awarded in **2020** under the commission's **Rural Digital [Opportunity](https://www.mindstick.com/articles/12836/flexibility-and-opportunity-making-the-gig-economy-work-for-you) Fund**. It has been [considered as](https://www.mindstick.com/forum/156093/what-is-considered-as-more-significant-creating-content-or-building-backlinks) a multibillion dollar program during which SpaceX was poised to get **$885.5 million** to beam [satellite internet](https://www.mindstick.com/news/1884/46-starlink-satellites-were-launched-by-elon-musk-s-spacex) to U.S. regions with very little to no internet connections.

David Goldman, the SpaceX's senior director of satellite policy had written that '**The decision seems to have been rendered in service to a clear bias towards fiber, instead of a merits-based decision to truly connect unserved Americans**.' He added that '**It was hard to not see it as an improper attempt to undo the (FCC's) earlier decision**.'

Simington had even raised issues concerning the Commerce Department's separate decision to exclude satellite broadband providers from a **$42.5 billion** broadband internet subsidy fund, which mentioned that it might facilitate Chinese companies.

Simington had mentioned that '**These actions would risk giving Chinese satellite internet providers who would have the total support of their government, a competitive advantage in serving the rest o the planet**.'

[SpaceX's](https://www.mindstick.com/news/1945/spacex-s-starlink-was-put-on-the-cruise-ships-by-the-royal-caribbean) **[Starlink](https://www.mindstick.com/news/1945/spacex-s-starlink-was-put-on-the-cruise-ships-by-the-royal-caribbean)**, a fast-growing network of over **3,000 satellites** in low-Earth orbit, has [tens of thousands](https://yourviews.mindstick.com/view/86374/imminent-volcano-eruption-iceland-shaken-by-tens-of-thousands-of-tremors-in-one-week) of users within the US till now, along with customers who have been paying a minimum of **$599** for a user terminal and **$110 a month** for service.

**Rosenworcel** mentioned Starlink's technology '**has real promise**' however that it couldn't meet the program's necessities, citing information that showed a gentle decline in speeds over the past year and casting the service's worth as too steep for customers.

Simington had urged the FCC commissioners to review SpaceX's appeal and would confirm that Americans in [rural areas](https://answers.mindstick.com/qa/113789/how-can-governments-address-the-challenges-of-unequal-access-to-education-in-rural-areas) '**get connected as soon as possible**.'

Also Read: [FCC Rejection of Rural Broadband Subsidies was appealed by SpaceX](https://www.mindstick.com/news/1978/fcc-rejection-of-rural-broadband-subsidies-was-appealed-by-spacex)

---

Original Source: https://www.mindstick.com/news/1985/the-decision-of-fcc-spacex-had-risks-giving-chinese-providers-an-edge

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