SpaceX awarded $885 million for satellite internet to rural areas, but has to demonstrate reliability and affordability

SpaceX has just secured $885 million for a novel approach to building out rural broadband in the Federal Communications Commission's recent $9.2 billion Rural Digital Opportunity Fund Phase I auction. 

SpaceX's Starlink satellite service "could be a game-changer for places where laying fiber isn’t an option," Devin Coldewey reports for TechCrunch. To get the money, SpaceX has to demonstrate over several years that it can provide reliable service to the targeted rural areas for a reasonable price.

Starlink's big advantage is that it doesn't require major construction projects or laying lines. "All that’s needed is a dish and for their home to be in the area currently covered by the rapidly expanding network of satellites in low-Earth orbit. That means the company can undercut many of its competitors — in theory anyway," Coldewey reports. "Starlink has not had any major rollout yet, only small test deployments, which, according to SpaceX, have gone extremely well. The first wave of beta testers for the service will be expected to pay $99 per month plus a one-time $500 installation fee, but what the cost of the commercial service would be is anyone’s guess (probably a bit lower).