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Worries Mount Rural Digital Opportunity Fund Default Money Will Be Wasted

Concerns are mounting that over $2.8 billion in potential broadband grants doled out by the Federal Communications Commission’s (FCC) Rural Digital Opportunity Fund (RDOF) could be wasted, further eroding the already well-criticized program’s disjointed effort to expand broadband access across rural America.

In 2019, the Ajit Pai FCC created the $20.4 billion RDOF with an eye on shoring up affordable broadband access in traditionally unserved rural U.S. markets. The money was to be doled out via reverse auction in several phases, with winners often declared based on having the maximum impact for minimum projected cost.

During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands. But of the $9.2 billion in winners, over $2.8 billion has gone into default, meaning the bidder couldn’t actually deliver on promised projects. 

We've tracked the RDOF awards since the auction concluded, including for the providers that defaulted on their wins.

These issues have not only imperiled RDOF program funding, but have thrown a wrench in the works of numerous additional government efforts to shore up broadband access, from the FCC’s long-criticized quest to accurately map U.S. broadband access, to the implementation of newer grant programs overseen by other agencies.

Worries Mount Rural Digital Opportunity Fund Default Money Will Be Wasted

Concerns are mounting that over $2.8 billion in potential broadband grants doled out by the Federal Communications Commission’s (FCC) Rural Digital Opportunity Fund (RDOF) could be wasted, further eroding the already well-criticized program’s disjointed effort to expand broadband access across rural America.

In 2019, the Ajit Pai FCC created the $20.4 billion RDOF with an eye on shoring up affordable broadband access in traditionally unserved rural U.S. markets. The money was to be doled out via reverse auction in several phases, with winners often declared based on having the maximum impact for minimum projected cost.

During phase one of the program, the FCC stated that 180 bidders won $9.2 billion over 10 years to provide broadband to 5.2 million locations across 49 states and the Commonwealth of the Northern Mariana Islands. But of the $9.2 billion in winners, over $2.8 billion has gone into default, meaning the bidder couldn’t actually deliver on promised projects. 

We've tracked the RDOF awards since the auction concluded, including for the providers that defaulted on their wins.

These issues have not only imperiled RDOF program funding, but have thrown a wrench in the works of numerous additional government efforts to shore up broadband access, from the FCC’s long-criticized quest to accurately map U.S. broadband access, to the implementation of newer grant programs overseen by other agencies.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.

Wireless Is Essential, But Fiber Remains the Future (For Now)

From the miraculous benefits of WiMax to the hype surrounding 5G, U.S. wireless companies have long promised near-Utopian levels of technological revolution.

Yet time after time these promises have fallen short, reminding a telecom sector all-too-familiar with hype that fiber optics remains, for now, the backbone of bridging the digital divide. 

From Google Fiber to Starry, numerous companies have promised to use wireless technology as a supplement or even replacement for future-proof fiber. But more often than not these promises have failed to have any meaningful impact at scale. Worse, many wireless services often fail to deliver on a routinely neglected aspect of telecom policy: affordability.

That’s not to say that wireless doesn’t have an immense, integral role to play in shoring up the nation’s broadband gaps. 5G, rural and urban small WISPs, satellite, and other wireless options are all essential in bridging the digital divide and extending access to rural communities and tribal nations (see: the FCC Tribal Priority Window and the beneficial wireless options that have emerged). 

But reality continues to demonstrate that there’s simply no substitute for the kind of high capacity, affordable fiber efforts being deployed by a steady parade of municipalities, cooperatives, and city-owned utilities. And as an historic level of federal subsidies wind their way to the states, the distinction is more important than ever. 

A Rich History Of Wishful Thinking

The industry crown for unwarranted wireless industry hype likely belongs to WiMax, a family of wireless broadband communication standards based on the IEEE 802.16 set of standards and introduced in 2001.

From 2001 to 2011, there were no shortage of missives about how the standard would revolutionize connectivity worldwide, ushering forth the golden age of affordable broadband access. There were countless warnings that marketing departments had gotten well ahead of themselves, all widely ignored by the speculative investment set.