A major blow for the company founded and led by the world's richest man, was announced Wednesday by the Federal Communications Commission.
There is an internet terminal inUkraine.
The FCC said in a statement that Starlink's subpar internet speeds and high user costs caused the rejection.
In December 2020, the FCC gave a nearly billion-dollar subsidy to the company in order to bring faster internet to underserved parts of the country.
Forbes contacted the company for comment.
The company that received the most funding was rejected by the FCC because it didn't have the capacity to build out its broadband services.
Starlink users have to pay $110 a month to use the broadband service if they don't have a user terminal. The winning bid for the FCC subsidy was hailed as a major win for the company, and Quilty Analytics senior analyst Caleb Henry said at the time that it was great for the company because they had an anchor customer and an assured source of revenue. CNBC reported that Musk told employees in June that he would like to spin off Starlink as a public company in three or four years.
It's $125 billion. It is the second most valuable start-up in the world according to CB Insights. According to a 2020 FCC filing, Musk is the company's largest shareholder with 47.4% of the shares.
The FCC gives subsidies to give rural areas broadband access.
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