On April 27, 2021, the Federal Communications Commission ("FCC") released an Order granting an application filed by SpaceX to modify its Starlink satellite network by, among other things, reducing the number satellites in its constellation as well as lowering the altitude in which a portion of its satellites will operate.  One interesting aspect of the FCC's decision is how it will impact broadband deployment.  SpaceX was one of the largest winners of the FCC's Rural Digital Opportunity Fund ("RDOF") auction, securing more than $885.5 million of the $9.2 billion in federal subsidies made available by the agency to bring broadband services to unserved and underserved areas throughout the U.S.  And while the FCC stated that its decision to grant SpaceX's modification application is not intended to address any issues related to the RDOF auction, some parties like Viasat have suggested that SpaceX could not meet its broadband deployment obligations related to RDOF without FCC approval of its modification application. 

Another interesting aspect is how the FCC's decision will impact commercial 5G wireless services.  One of the spectrum bands in which SpaceX operates is the 12 GHz band.  The FCC has an open proceeding to evaluate whether the 12 GHz band, currently used for direct broadcast and other satellite services, can be made available for terrestrial mobile use.  And although the FCC likewise stated that it declines to prejudge any aspects of the 12 GHz proceeding through its decision, some parties, including DISH, have asserted that grant of SpaceX's application would hinder the FCC’s ability to authorize 5G services in the 12 GHz band.  

Time will tell whether SpaceX can both deliver on its broadband deployment obligations and avoid hindering potential use of the 12 GHz band for 5G wireless services.