Time for the FCC to Do Its Job

Jeff Brown
|
Oct 1, 2024
|
Bleeding Edge
|
6 min read

Our hearts go out to those who have been impacted by Hurricane Helene.

The path of destruction across the southeastern U.S. is hard to believe.

Source: NOAA

I know that we have many subscribers who live in these areas. We’re thinking of you.

The pictures and videos that we have seen are heart-wrenching.

Entire towns like Chimney Rock, North Carolina – and many others – are literally gone.

The uprising of support from both the private sector and individuals has been truly inspiring. It has also come out of sheer necessity…

Due to the utter lack of emergency support from the U.S. government.

Our Vital Communications Channels

This Helene situation is so unbelievable that it has been hard for me to think about anything else, despite a seemingly endless list of topics to explore in high-tech.

In a disaster like this, it’s a reminder of the most valuable things to us – things like water, food, diapers, baby formula, medical supplies, and of course, communications networks. After all, relief efforts must be organized, and those impacted need to stay in touch with friends, family, and those providing aid.

The last point – communications networks – is one problem where technology can help.

In natural disasters like this, phone lines, CATV networks, and even wireless networks are often destroyed, as the poles or towers that they reside on are torn down.

This is where satellite broadband can be a lifesaver.

This has had me thinking of related events of the past several years…

The Problem Could Have Been Solved Already

Back in December 2022, Starlink, a division of SpaceX, won an award for $885.5 billion in federal subsidies from the Federal Communications Commission (FCC).

The subsidies were meant to support the deployment of broadband communications to 642,925 locations across 35 states.

Many of those locations are located in the areas impacted by Helene.

It appeared to be a major win for those living in rural areas without any form of broadband communications.

But then, in August of 2022, in an absolutely bizarre turn of events, the FCC announced that it was revoking those subsidies for Starlink terminals in rural areas.

The FCC’s explanation was that Starlink “failed to demonstrate that the providers could deliver the promised service.”

It was complete nonsense.

By that time, SpaceX had already deployed the largest satellite constellation in history – blanketing the globe.

The Starlink network was already operating commercially and demonstrating impressive download speeds to users of its network in 2022.

In fact, Starlink already had more than 1 million Starlink subscribers using its satellite broadband service that year.

And last month, Starlink crossed over the 4 million subscriber mark.

Those now suffering Helene’s aftermath should be among that subscriber base.

Except they aren’t.

Starlink Has the Solution

SpaceX is one of the most revolutionary and successful companies in history.

It has already transformed the aerospace industry and is the single most impactful company in igniting the entire space economy – through its radically lower costs of transporting people and payloads to space (like broadband communications satellites).

No other company has demonstrated either the financial wherewithal or the engineering prowess to accomplish what SpaceX has already done.

And yet, the FCC determined that SpaceX Starlink doesn’t have what it takes.

The politics behind the 2022 decision became even more obvious last December when the FCC doubled down with an even more ridiculous announcement: It had “reaffirmed” its decision to reject the Starlink application for rural broadband subsidies.

Source: FCC

In the press release shown above, the FCC again made a false claim that “Starlink failed to demonstrate that it could deliver the promised service.” There was no other solution in the market that had already deployed inexpensive broadband communications services to rural areas at a remarkable scale.

Let’s consider the cost of a Starlink system versus another alternative supported by the FCC.

The cost of a Starlink system is currently $299. With shipping and tax, that’s a total of $334.15 to ship a Starlink system to Chimney Rock, NC.

And the monthly fee for use is $120 for the standard service, which typically delivers more than 100 Mbps internet speeds.

What’s even more interesting than the FCC’s position that Starlink can’t deliver – therefore is disqualified for the subsidies – is that the FCC states another solution at the bottom of the letter…

Fiber Versus Satellite Broadband

According to the FCC, a more preferred solution than Starlink is to have The Rural Digital Opportunity Fund focused on delivering fiber gigabit broadband service to rural communities.

By way of comparison, it’s worth understanding the cost differences between deploying broadband satellite – which can be installed in about five minutes anywhere – and building a fiber optic network – which takes years and an absurd amount of money per installation.

Based on grants made in the past for connecting direct fiber optic links to homes in rural areas, the cost per connection can range from $60,000 to $200,000.

The large variability in the costs is directly related to population density in a given area and how much fiber optic cable has to be hung along telecommunications poles.

Even in urban and suburban areas where a telecommunications company has already built out a fiber optic cable network across most residential streets, it still costs $1,000-1,250 to install fiber optics from the utility pole directly to a home.

Yes, a fiber optic connection is better, with likely speeds of 500-1,000 Mbps. But as we saw with Helene, all the utility poles were torn down by the storm, which would take the fiber down as well. This is striking compared to just $334.15 to get up and running with Starlink in a matter of minutes with no risk of losing connectivity during the storm. It just doesn’t make sense.

It would still be far cheaper if the subsidies also included a $50 discount on the monthly service fee (for example) to bring the monthly costs in line with a lower-tier, monthly CATV internet service cost.

This problem could have been solved years ago had politics not gotten in the way.

And now, Starlink is sending as many Starlink terminals as it can to affected areas to get them connected as quickly as possible. Polaris Power has been sending in generators to produce electricity, as well.

And that’s not the only solution for emergency services…

Direct-to-Cell Service

While not commercially deployed yet in the U.S., this January, SpaceX launched its first Starlink satellites designed specifically for direct-to-cell phone capabilities. The network is actually in place already.

U.S. wireless operator T-Mobile has a one-year exclusivity deal with SpaceX for direct-to-cell services and is currently testing the network. T-Mobile has planned to launch these services, which enable its subscribers to access communications even if they are out of range from a wireless network, by late 2024 or early 2025.

AST SpaceMobile (ASTS) is another major player in direct-to-cell, which manufactures its own satellites in Texas. AST has already signed AT&T for direct-to-cell services, as well as various agreements with about 40 other wireless operators worldwide.

AST SpaceMobile Manufacturing Facility in Texas | Source: AST SpaceMobile

The other major player in direct-to-cell technology is Lynk Global, which is in the lead in deploying commercial services. It already has regulatory approval in more than 30 countries and agreements with more than 40 wireless operators with service in more than 50 countries.

Lynk Global already has some limited services deployed in seven countries. Lynk has also signed an agreement with the Defense Information Systems Agency (DISA) to provide direct-to-cell services to the U.S. Department of Defense, the Department of Homeland Security, and other U.S. government agencies.

The reality is that billions of cell phone users are regularly out of range of wireless networks from time to time. And it is those times of emergency and natural disaster when this technology becomes critically important.

Commercial services in the U.S. for direct-to-cell capabilities are still awaiting approval from the FCC. The technology exists today, it works, and it is deployed in other countries.

How many more disasters have to happen before the FCC drops the politics and provides the support that those in rural or remote locations need?


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