“The Commission determined that these applications failed to demonstrate that the providers could deliver the promised service,” the FCC said in a statement.

FCC Chairwoman Jessica Rosenworcel added: “We cannot afford to subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”

In December 2020, the FCC tentatively awarded $886 million to SpaceX to help its Starlink service supply high-speed broadband to 642,925 locations in 35 states. However, it came with a requirement (Opens in a new window) that SpaceX provide a long-form application about how Starlink would meet its obligations before the federal funding could be fully secured.