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Elon Musk's SpaceX LOSES HUGE MONEY · Elon Musk Podcast

• 0:01
  Hey everybody. Welcome back to the show.
• 0:02
  If you're a fan of Elon Musk or any of his companies, please
• 0:06
  make sure to subscribe on whatever podcast platform that
• 0:09
  you're listening on. Elon musk's SpaceX has lost its
• 0:12
  bid for nearly nine hundred million dollars in rural
• 0:16
  Broadband subsidies for starlink broadband service.
• 0:21
  Now starlink is basically Elon, musk's rural Broadband,
• 0:27
  satellite constellation that encompasses the whole Globe and
• 0:30
  going forward, they're not going to get 900 million dollars, that
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  they thought they were going to do to kind of subsidize the
• 0:38
  building and deployment of these star link set lights.
• 0:42
  So they launched these on a Falcon 9 rocket at this point,
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  but eventually it for the starlink V2 satellites are going
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  to be launching them on Starship and they can only launch V2 on
• 0:53
  Starships. So they need to get Starship
• 0:55
  done which is down in Texas to building it right now.
• 0:58
  And The giant booster, booster 7 is back in the bay.
• 1:03
  They did a static fire for it the other day and it was
• 1:06
  successful. So, they're adding more engines
• 1:08
  to the booster and are going to be, carding it down to the
• 1:12
  launch site at Boca Chica, Texas, any day.
• 1:16
  Now, probably early next week because we do have some road
• 1:19
  closures on Monday and Tuesday, 10:00 a.m. to 10 p.m.
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  Texas time. So Monday, the 15th Tuesday, the
• 1:28
  16th 10 a.m. to 10 10:00 p.m. Now the thing is SpaceX needs
• 1:34
  this money in order to build out version 2 of star like they also
• 1:40
  have other funding as well. They just had some, you know, a
• 1:42
  couple billion dollars in funding from private sources,
• 1:45
  but 900 million dollars is a huge amount of money.
• 1:49
  Now, the FCC said, August 10th at SpaceX had failed to show it.
• 1:55
  Could meet requirements for unlocking the funds which aim to
• 1:59
  incentivize Expanding Broadband services to underserved areas
• 2:04
  across the United States. Basically, if you live in the
• 2:07
  middle of nowhere, if you live on the middle of, in the middle
• 2:11
  of a mountain somewhere, or, you know, in some place it could
• 2:15
  even be a few miles away from everybody else that you can't
• 2:18
  get cable from something like Spectrum or a cable provider, a
• 2:23
  TV provider. Then starlink is probably your
• 2:27
  best option because conventional Satellite internet providers,
• 2:31
  just don't really cut it. They don't have the speed.
• 2:35
  This starlink has starlink. You're able to play video games,
• 2:39
  you're able to stream movies for hours on end, but now they're
• 2:43
  not going to get 900 million dollars to continue building
• 2:46
  version 2 of star links. And also, they're gonna have to
• 2:49
  use some money from someplace else to build these star links
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  and also possibly, some of those 900 million dollars could have
• 2:56
  went to building of Starship. Because it's part of the Like
• 3:00
  program. It's part of the spacex's
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  overall overreaching, you know, broadband internet
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  constellation. So this is what the FCC said.
• 3:12
  We must put scarce Universal service dollars to their best
• 3:15
  possible. Use as we move into a digital
• 3:17
  future, that demands ever more powerful, and faster networks.
• 3:22
  That's what Jessica rosenworcel said in a statement.
• 3:27
  And she said, we cannot afford to subsidize.
• 3:29
  Has that are not delivering the promised speeds or not likely to
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  meet program requirements. So SpaceX has already been
• 3:39
  awarded some money though. Before in 2020 after competing
• 3:43
  in an auction under phase, one of the fcc's rural digital
• 3:47
  opportunity fund, the are dof and SpaceX one, one of the
• 3:52
  largest shares among the auctions 180 successful bidders
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  in cover nearly six hundred forty three.
• 4:00
  Homes and businesses in up to 35 States, so they're doing okay,
• 4:06
  six hundred forty three thousand homes.
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  That's a lot of people auction winners, were required to submit
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  paperwork to the FCC to show how they plan to employ Services,
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  the meet the rdos conditions to receive the funds over 10 years
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  and starlink it said that they were going to include 100
• 4:25
  megabits per second, download speeds, and 20, MB upload
• 4:28
  speeds. Now it apparently, they didn't
• 4:32
  get that amount of speed either up or down.
• 4:35
  So SpaceX, didn't win this new contract.
• 4:39
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  So go to back plays.com / heel on backblaze.com Ilan
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  backblaze.com heel on I-49 hundred thousandths or 900
• 6:52
  million dollars. That's a lot of money auction
• 6:56
  winners. You know they had to submit
• 7:00
  paperwork. To the FCC to show how they plan
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  to deploy the services and sternly apparently didn't meet
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  those requirements. So terrestrial Telecom LTD
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  Broadband, which was provisionally awarded about 1.3
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  billion dollars in subsidies under the program also failed to
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  just to demonstrate that. It could deliver the promise
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  service. So not only did starlink which
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  is SpaceX is huge, swath of Internet satellites.
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  You know, it's a traditional terrestrial Broadband company
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  that didn't make it either because they couldn't deliver
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  the speeds. So this is kind of the FCC
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  pushing you and pushing these companies into higher speed
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  Broadband, which is great for everybody, including you and me,
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  who will eventually reap the rewards of the the speeds for
• 7:56
  these FCC contracts or people that you may know.
• 7:59
  I mean, Meg's up per second and download speeds of 20 Meg's.
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  It's pretty decent. I mean for for a rural place
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  that you know maybe you don't have any connection at all maybe
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  you have an LTE connection on your phone but that's about it.
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  But rosenworcel said star links technology has real promise so
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  they didn't just throw them under the bus and say you don't
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  get any money that you know, she was like hey this is a decent
• 8:27
  project that you got going on here you Lon let's continue.
• 8:30
  To work together. But the question before us is
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  what she said was whether to publicly subsidized, it's still
• 8:36
  developing technology for Consumer Broadband, which
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  requires the users purchase of a 600 dollar dish with nearly 900
• 8:44
  million dollars in Universal service funds until 2030 to six
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  hundred dollar dish. It's a hundred bucks a month.
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  Would you be willing to pay for that to get really great
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  broadband internet? So Google has speed test.
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  Show, download speeds, for SpaceX is starlink improve. 38
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  percent to ninety point five, five, megabits per second in the
• 9:08
  first quarter of 2022. So, that's their up 38%.
• 9:13
  But they still didn't reach the 100 MB in that speed test that
• 9:18
  hoopla. So, however Ookla said upload
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  speeds fell from a 16-point 8:31 point three, three megabits per
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  second so they're not even close.
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  So that's unfortunate for SpaceX and they have to do some
• 9:33
  tweaking, possibly with Hardware, possibly with software
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  and then we'll see what happens in the future.
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  See if they can get some more of these contracts in the future
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  because, you know, 900 billion dollars that's a ton of money.
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  And as the number of Starling subscribers increase, the system
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  will become, you know, more constrained by the amount of
• 9:56
  people on the network. So basically, if Using the same
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  internet that somebody else is using and even though it's fast
• 10:05
  there might not be enough satellites out there to help
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  everybody out get those speeds. So system will become more
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  capacity constrained in the future in.
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  It may impair Network performance and constrained
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  speeds for end users and in July, twenty twenty twenty
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  twenty two on the 29th. Letter to the FCC SpaceX said
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  that The Via set is transparently attempting to have
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  the commission, impede competition at all costs to
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  protect its Legacy technology. Vice at has a very minimal
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  offering in this space. So SpaceX has a huge amount of
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  money behind them, and they have a huge amount of momentum via
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  set has very low speeds compared to Starling very low coverage.
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  So, if you're a fan of SpaceX, hopefully they get their stuff
• 10:59
  together and they get the out. Ended up 20 down or 100 down, 20
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  up going, but they've been battling for a while.
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  Feist and SpaceX have been battling.
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  So we'll see what happens in the future but I just want to let
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  you know about this. The FCC not approving SpaceX.
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  What do you think about it? So that's about it for today.
• 11:17
  Thanks everybody for listening. I appreciate your time.
• 11:20
  I appreciate everybody out there and I will see you next time.
• 11:25
  Take care. Make sure to subscribe to helps
• 11:27
  out the channel lat. Bye-bye.