Forbes by Zachary Folk 1/22/2024
Elon Musk Renews Conflict With Biden Administration After Millions Announced In Subsidies For Rural InternetTopline
President Biden announced an $82 million investment in high speed internet in rural North Carolina, drawing criticism from SpaceX CEO Elon Musk, who recently lost a nearly $900 million U.S. contract to provide internet service through Starlink.
Key Facts
The Biden administration’s announcement on Friday drew heavy criticism from FCC Commissioner Brendan Carr, a Republican appointed by President Trump, who noted the new investment cost $5,125 per location—compared to an estimated lower cost of $1,377 per household the government would have spent if they renewed SpaceX’s subsidies from the Rural Digital Opportunity Fund.
However, Starlink also requires expensive satellite equipment that starts at $599, and will require upgrades in the future, according to the company’s specifications.
Discussing the new investment at an event in Raleigh, Biden said that “fiber-optic cable is being laid in the ground as we speak,” which would not require the equipment investment Starlink needs to function.
Musk jumped on Carr’s criticism, calling the Biden administration’s decision “insane” and noting Starlink’s bandwidth capabilities “exceed” the FCC’s definition of high speed broadband.
More:
https://www.forbes.com/sites/zacharyfolk/2024/01/22/elon-musk-renews-conflict-with-biden-administration-after-millions-announced-in-subsidies-for-rural-internet/?sh=4814ab72540a