The Federal Communications Commission (FCC) said it has “serious doubts” that SpaceX will be able to deliver internet service with latency under 100 milliseconds (via Ars Technica). That would not only be bad for users, but means that SpaceX could be at a disadvantage in an auction to distribute $16 billion in federal funds to support rural broadband access. SpaceX strongly disagrees, but it may not be able to prove its case in time.
In a report on the phase I auction for the rural digital opportunity fund (RDOF), the FCC admitted that Starlink and other LEO (low-Earth orbit) providers have advantages over geostationary satellites that operate at much higher altitudes. However, it’s skeptical that latency can be determined by orbital altitude alone, saying it can also be affected by factors like “processing, routing and transporting traffic to its destination.”