Elon Musk's Comments Disqualify Starlink For $886 Million Of Funds Argues Viasat

SpaceX chief Elon Musk at the MWC Barcelona.

Space Exploration Technologies Corp.'s (SpaceX) Starlink satellite cyberspace constellation is facing criticism from California-based satellite net provider Viast nearly its ability to remain financially healthy in the foreseeable future. Starlink is currently fighting to retain access to the 12Ghz frequency band for its user terminals and secured nearly a billion dollars of funding from the Federal Communications Commission (FCC) for the Rural Digital Opportunity Fund (RDOF) which aims to provide rural America with broadband net.

Every bit part of its criticism of Starlink's ability to finer meet the RDOF obligations, Viasat aimed comments made past SpaceX'due south chief Mr. Elon Musk at the Mobile World Congress in Barcelona before this twelvemonth. At the event, the executive touched upon the difficulties of financially managing Starlink,  the service'due south long-term aims and planned upgrades, amongst other details.

Starlink Dismisses Viasat Concerns As Anticompetitive and Outlines That Only FCC Tin can Determine Its RDOF Eligibility

Viasat'south initial opposition to Starlink's $886 million RDOF funding win hinged around the facts that Starlink's promise that it will manage its RDOF commitments past introducing technological upgrades to the system and user terminals is inconsistent with the program's accolade criteria and that even if the service did introduce upgrades, it would withal be unable to meet the RDOF requirements.

In response, SpaceX'south head of satellite policy, Mr. David Goldman, submitted a brief response to the FCC stating that it is the Commission'due south and not competitors' responsibility to evaluate the claim of a service for public funding.

In its opposition, Viasat had accused Starlink of ''ignoring" a detailed written report that it had submitted showing that technical constraints left Starlink unable to provide adequate internet coverage to the RDOF recipients, aslope challenge that upgrades to the user terminals and software were unfeasible at removing the highlighted technical constraints.

Viasat'due south summary of its analysis which it claims, reveals that Starlink cannot meet the FCC's RDOF requirements. Image: Viasat, Inc., Ex Parte Presentation June 1, 2021

Viasat then beefed up its arguments and added late concluding month that SpaceX was ineligible for bidding for RDOF since it did not hold acceptable spectrum authorizations for launching sufficient Starlink satellites for meeting the programme obligations. In the filing, Viasat had outlined that:

Thus, nether SpaceX's estimation of the Commission's RDOF rules and policies, SpaceX should not have been permitted to bid its depression-latency LEO system in the RDOF sale. That SpaceX was permitted to do so can be attributed to the inaccurate information information technology provided in its curt-form application. The Commission should not advantage SpaceX for that misrepresentation, or for compounding that misrepresentation in its recent advancement—which was irresponsible at best and an abuse of process at worst—past granting its long-form awarding or awarding it RDOF support.

Additionally, information technology targeted Musk'southward statements at the Barcelona result by stating that they raised "serious concerns" about Starlink's power to remain a going business concern. In fiscal terms, a going business organization is a visitor that can meet all of its financial obligations without ceasing operations.

Viasat pointed out that:

In curt, while SpaceX apparently was willing to merits a clean bill of fiscal wellness in its RDOF applications, Mr. Musk has told a very different story to the public. That story has emphasized the inherently risky nature of the Starlink enterprise. In light of Mr. Musk's characterization, the Commission tin, should, and must conclude that Starlink is the sort of "risky venture" that the Bureaus accept ended should not be funded by the RDOF.

Inside a SpaceX fairing as it separates and deploys a batch of Starlink satellites in 2019. The satellite stack is visible in the center. Image: SpaceX/YouTube

Elon Musk'south Statements Point Starlink Tin Go Broke Believes Viasat

At the event, Musk had outlined that his first priority was to ensure that Starlink did not go bankrupt. This was not the get-go time the executive commented on the difficulties of setting up a satellite internet service, with his statements made in February besides outlining that Starlink shares would exist sold to the public in one case its cash menstruation became anticipated.

During the MWC, Musk had also commented on the long-term costs of Starlink by stating:

And then nosotros need to exist able to offer our service at a comparable or ideally lower rate than GTO satellite connectivity. Then, it'southward just basically total investment probably is similar at least 5, perchance $10 billion and then over fourth dimension it's gonna be a multiple of that and go to $20 to $xxx billion over fourth dimension. It'due south a lot basically.

In response to Viasat's latest opposition, SpaceX's Goldman reiterated that determining eligibility for RDOF funding was the FCC's prerogative and not competitors. Mr. Goldman, in a filing to the Commission claimed that:

In the latest of many anticompetitive attacks beyond multiple proceedings, Viasat Inc. continues its misguided attempt to insert itself in the Commission staff'south review Infinite Exploration Technologies Corp.'s ("SpaceX'south") Rural Digital Opportunity Fund long-course application. Undeterred by Commission rules, Viasat ignores notwithstanding again that the Commission specifically directed the FCC staff–not competitors–to review the merits of winning bidders' applications. SpaceX has welcomed that staff review, and will continue to work within that Commission-mandated process–rather than the sideshow in which Viasat would prefer to indulge–to demonstrate that it will meet all of its RDOF obligations.

While Musk's statements to the public offering insight into some of the funding Starlink needs to sustain operations, the service's long-course RDOF application tin can reveal confidential sources.

The biggest hurdles for Starlink right now are manufacturing the user terminals and launching satellites. Both price in the millions, and for Starlink to break even, i.eastward., recover the investments made, it volition accept to generate turn a profit in the millions. To encounter this goal, information technology will have to expand service, with the investment community appearing confident. Investment banking concern Morgan Stanley, for instance, believes that Starlink can be worth at least $fifty billion if information technology captures only 10% of traditional broadband users.

Source: https://wccftech.com/elon-musks-comments-disqualify-starlink-for-886-million-of-funds-argues-viasat/

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