Starlink is going to have to find another route to funding after the Federal Communications Commission (FCC) rejected a bid from the company.

The bid Starlink made was for the Rural Digital Opportunity Fund. This initiative was launched by the FCC with a view to bridging the digital divide by bringing connectivity to rural areas.

“The Rural Digital Opportunity Fund will ensure that networks stand the test of time by prioritizing higher network speeds and lower latency, so that those benefitting from these networks will be able to use tomorrow’s Internet applications as well as today’s,” the FCC said.

Starlink appears to be a prime candidate for this initiative and it believed so as well. So much so that it put in a bid for as much as $885.5 million in aid, according to an Engadget report. That bid has now been rejected and Starlink’s satellite dishes may be the cause.

“Starlink’s technology has real promise,” said FCC chairwoman Jessica Rosenworcel. “But the question before us was whether to publicly subsidize its still developing technology for consumer broadband—which requires that users purchase a $600 dish—with nearly $900 million in universal service funds until 2032.”

Speaking frankly, Rosenworcel said that the FCC cannot use limited “universal service dollars” on ventures that aren’t likely to meet the requirements of the programme or deliver the promised speeds.

This is a real problem as it highlights that as impressive as Starlink is, it’s not as good as fixed broadband which may be more costly but is more reliable.

Recently, Starlink started offering customers (particularly the van lifers on TikTok) the chance to purchase Starlink RV at a higher fee with a deprioritised service.

It looks as if Starlink is going to have to find another way to get its hands on the funds it needs.