Ajit Pai caves to SpaceX but is still skeptical of Musk’s latency claims

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The Federal Communications Commission has reversed course on whether to let SpaceX and other satellite providers apply for rural-broadband funding as low-latency providers. But Chairman Ajit Pai said companies like SpaceX will have to prove they can offer low latencies, as the FCC does not plan to "fund untested technologies."

Pai's original proposal classified SpaceX and all other satellite operators as high-latency providers for purposes of the funding distribution, saying the companies haven't proven they can deliver latencies below the FCC standard of 100ms. Pai's plan to shut satellite companies out of the low-latency category would have put them at a disadvantage in a reverse auction that will distribute $16 billion from the Rural Digital Opportunity Fund (RDOF).

But SpaceX is launching low-Earth-orbit (LEO) satellites in altitudes ranging from 540km to 570km, a fraction of the 35,000km used with geostationary satellites, providing much lower latency than traditional satellite service. SpaceX told the FCC that its Starlink service will easily clear the 100ms cutoff, and FCC Commissioner Michael O'Rielly urged Pai to let LEO companies apply in the low-latency tier.

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