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SpaceX wins almost $1B to bring Starlink internet to half a million US homes, businesses

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In a competition against hundreds of providers, many established, SpaceX’s Starlink constellation has come out of left field to win almost $1B from the FCC – funds that will help bring high-quality internet to hundreds of thousands of rural Americans.

Just 13 months after Starlink v1.0 flights began, SpaceX has successfully delivered almost 900 operational Starlink satellites to low Earth orbit (LEO) over the course of 15 dedicated Falcon 9 launches. At least 700 of those ~265 kg (~580 lb) spacecraft have completed orbit raising maneuvers with krypton-fueled electric thrusters and are truly operational, serving an ever-growing number of Starlink internet beta customers across the northern US and southern Canda.

Out of 180 winning FCC auction bidders, SpaceX appears to be just one of two space-based internet providers despite the entrenched and monopolistic nature of existing rural satellite internet companies like Viasat and HughesNet – the latter of which did secure about $1.25 million to subsidize services at ~3700 locations. The main reason: designed to operate in LEO to ensure extremely low latencies, only SpaceX’s Starlink constellation was deemed eligible to compete for the majority of Auction 904, which prioritized high speeds and low latency (ping).

All told, SpaceX appears to be second only to one other competitor – a Charter Communications subsidiary – for the number of service locations it won during the FCC’s latest rural broadband auction. Based on a brief scan and analysis of official spreadsheets released by the regulatory agency, Charter won around $1.22 billion to subsidize service for 1.05 million rural American “locations” (i.e. homes, businesses, community centers, etc.), followed by SpaceX ($885 million for ~643,000 locations), and the Rural Electric Cooperative Consortium ($1.1 billion for ~618,500 locations).

LTD Broadband took home the biggest monetary prize, winning $1.32 billion to subsidize service at ~528,000 locations. While it’s difficult to compare on a level playing field due to the varying degrees of subsidy determined necessary by the FCC on a roughly case-by-case basis, SpaceX appears to be as cost-efficient or cheaper than the other two-dozen or so competitors that secured 100,000+ locations, averaging around $138 per site per year. For the entire auction, the average annual subsidy will be $176 per location.

SpaceX completed its last Starlink launch of 2020 – Starlink-15 – on November 24th. (SpaceX)

According to the FCC, the funds will be evenly dispersed over the next 10 years, hopefully ensuring high-quality internet access for 5.2 million unserved rural homes and businesses and positively impacting the lives and communities of at least 10-20 million rural Americans.

Additionally, thanks to a very competitive auction, the FCC wound up committing only $9.2 billion of a total $16 billion available for this “Phase I” rural auction. Combined with funds reserved for future auctions, the FCC says it will be able to commit at least $11.2 billion to an upcoming Phase II auction, which will focus on underserved (“partially-served”) areas to complement Phase I’s focus on unserved locations.

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SpaceX won’t be able to use the FCC funds it wins to pay for actual Starlink launches but it will be able to use them to lower the cost of access for hundreds of thousands of rural US customers. (SpaceX/Richard Angle)

To be clear, the ~$88 million SpaceX will receive annually for the next decade will go directly towards lowering the barrier to entry and cost of service for hundreds of thousands of Americans that currently have little to no reliable internet access. The company will be required to regularly hit buildout milestones, proving to the FCC that it’s on track to serve all ~543,000 awarded locations within six years of the first payment – but the faster, the better.

Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Sweden blocks Tesla FSD-style testing in Stockholm

It looks like FSD testing in Sweden would have to wait some time.

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Credit: Tesla AI/X

Tesla is putting a lot of effort into getting its Full Self Driving (FSD) system approved in territories outside North America. But while China seems to have embraced FSD fully, other countries like Sweden do not seem to be receiving Tesla’s automated driving system very well.

This became quite evident in a document from Stockholm City, which has started making the rounds online.

FSD Testing Rejected

The document, which was initially shared by X user @KRoelandschap, indicated that the Swedish Traffic Department in Stockholm had rejected Tesla’s request to start FSD testing in the city’s streets. Tesla has been demonstrating FSD in several areas across Europe, so it is not surprising that the company is also attempting to test its automated driving system in Sweden.

Unfortunately for Tesla, Sweden might prove to be a tough nut to crack. As per the City of Stockholm: 

“The Traffic Office is currently working on updating its approach to automation. At the same time, the city and the office are under heavy pressure from other ongoing innovation tests. Our ambition is to actively participate in and learn from the continued development in the field of automation. 

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“Based on this, and in combination with the fact that the current test is the first of its kind, which entails certain risks for both infrastructure and third parties, and that it is planned to be carried out throughout the city, the City of Stockholm considers it is currently not possible to approve the implementation of the test.”

Tesla’s Other Swedish Troubles

Sweden’s FSD testing rejection is not the only roadblock facing Tesla in the country. Since October 2023, Swedish unions have been engaged in an active effort to disrupt Tesla’s operations. The unions’ efforts have been varied, with some resulting in Tesla having difficulty launching more Superchargers in Sweden. Despite this, Tesla has remained stubborn and has refused to bow to the unions’ demands.

Fortunately for Tesla, it seems like its numbers are still strong. Despite the company’s decline in several European countries, the new Model Y is starting to see strong sales figures in Sweden. In early May alone, the new Model Y became the country’s most popular electric vehicle—a notable accomplishment considering the unions’ active efforts to disrupt Tesla.

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Tesla firmware shows new Model Y seat configuration is coming

Tesla could be adding another seating configuration beside the seven-seater to the Model Y lineup later this year.

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Credit: Tesla

Tesla firmware has been a great place for some to reveal what the company has in the pipeline, and a new seating configuration for the best-selling Model Y looks to be on the way.

Last week, we reported that Tesla was already hinting toward a 7-seater configuration of the Model Y in a promotional email it sent to those on its contact list.

However, firmware revealed by Tesla hacker greentheonly is showing that a new seating configuration is on the way — a six-seater:

Green says the configuration would not be available in China-only, and will be potentially for sale in other markets as well.

The six-seat and seven-seat configurations of the Model Y were available in the Legacy version of the vehicle, but were met with mixed reviews, as many complained about the lack of legroom in the third row.

This was something that was a real concern for many of those owners who needed something larger than the traditional five-seat variant, but did not want to buy the much more pricey Model X.

We’ve covered the size of that third row on several occasions.

Some owners even took the idea of having a seven-seater into their own hands:

Tesla Model Y third row seat test explores options for a comfortable 7-seat setup

Tesla did not explicitly announce a six-seater configuration of the Model Y, but Lars Moravy, the company’s VP of Vehicle Engineering, said the seven-seater would come to production later in 2025.

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Tesla confirms massive hardware change for autonomy improvement

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

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Credit: Tesla

Tesla has confirmed that a recent change made to some of its recently refreshed vehicles is, in fact, a strategy it will use to improve its suite as it continues to work toward autonomy.

Tesla first introduced a front-facing camera on the front bumper with the Cybertruck.

Then, the Model Y “Juniper” received the hardware update. The Model S and Model X both received the front-facing camera with its latest update, which was officially revealed last week.

Tesla used new language with the release of the front-facing cameras on the Model S and Model X, confirming they will assist with several things, including “using Autopilot and Actually Smart Summon capabilities”:

“Enhanced visibility when parking or using Autopilot and Actually Smart Summon capabilities.”

This tiny feature on the new Tesla Model Y is perhaps its biggest addition

This is the first time Tesla has used this sort of language, as it was a completely different description with the launch of the new Model Y in January.

When Tesla launched this vehicle, it said the front bumper camera “provides a wider field of view for automatic assisted driving and advanced Smart Summon.”

Tesla switched from using cameras and sensors to only cameras with the launch of Tesla Vision several years ago. The company’s utilization of cameras comes from Tesla’s belief that Ultrasonic Sensors (USS) are not needed for self-driving efforts:

“Along with the removal of USS, we simultaneously launched our vision-based occupancy network – currently used in Full Self-Driving (FSD) (Supervised) – to replace the inputs generated by USS. With today’s software, this approach gives Autopilot high-definition spatial positioning, longer range visibility and the ability to identify and differentiate between objects. As with many Tesla features, our occupancy network will continue to improve rapidly over time.”

CEO Elon Musk has said that sensors were only a crutch and that self-driving would be solved through the use of cameras:

“When your vision works, it works better than the best human because it’s like having eight cameras, it’s like having eyes in the back of your head, beside your head, and has three eyes of different focal distances looking forward. This is — and processing it at a speed that is superhuman. There’s no question in my mind that with a pure vision solution, we can make a car that is dramatically safer than the average person.”

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