Incoming FCC chair says it is unlikely commission could reinstate Starlink subsidy

By David Shepardson

WASHINGTON (Reuters) -The incoming Federal Communications Commission chair said on Thursday he did not expect the agency to restore $888.5 million in subsidies to Elon Musk's Starlink internet service, a denial he previously called harassment of the company owned by one of President-elect Donald Trump's closest allies.

Trump has named Musk, a key adviser and major donor to his election campaign, to co-chair a government efficiency initiative. Some critics have raised concerns Musk may have too much influence in the Trump administration.

The FCC in December 2023 reaffirmed its decision to deny Starlink, part of Musk's SpaceX, the rural broadband subsidies because it failed to meet its obligation to deliver high-speed internet to 642,000 rural homes. Starlink challenged the agency's 2022 decision.

FCC Commissioner Brendan Carr, who was named by Trump to become chair on Jan. 20, told reporters on Thursday: "It's very unlikely the FCC would revisit that." He cited procedural grounds because SpaceX had not sought further appeal or reconsideration.

Carr, who attended a SpaceX launch with Musk and Trump this week, has harshly criticized the FCC decision, saying in 2023 that the FCC was "taking action against Elon Musk’s businesses" and participating in a Biden administration "pattern of regulatory harassment."

Trump has suggested Disney’s ABC, Comcast’s NBC and Paramount Global’s CBS could lose their FCC licenses for various reasons.

Carr criticized NBC for letting Democratic presidential candidate Kamala Harris appear on "Saturday Night Live” just before the election.

Carr said that the FCC will examine all the relevant issues such as whether the broadcasters were meeting their obligation to act in the public interest.

(Reporting by David Shepardson; Editing by Cynthia Osterman)