OK, so I've researched the FCC's rural digital opportunity fund a bit more. My previous post wasn't quite correct. The original FCC rules for this program wouldn't have prohibited SpaceX from bidding, it just would have severely disadvantaged it. The original rules lumped all satellite bids into a high latency category, which would have cost SpaceX "points" which are used to rank various bids.
According to the WSJ, SpaceX convinced the FCC to make the rules more fair and to allow satellite operators to bid under the low latency category if they have in fact demonstrated low latency. From the above article: "The company, formally known as Space Exploration Technologies Corp., has convinced the Federal Communications Commission to propose a policy change that would improve its chances of winning federal funds to expand internet service in far-flung parts of the U.S., records show."
Of course, this wouldn't be SpaceX if they didn't attract lobbyists that are trying to perpetuate an unfair playing field against them. One of the quotes from the WSJ article: " “This will be a political disaster if Elon F’ing Musk gobbles up billions of dollars of the public’s money,” a congressional aide told industry lobbyists last week in one of the emails."
Anyways, one the other issues SpaceX had with the FCC requirements is that the FCC is mandating that they provide separate telephone in addition to the broadband. SpaceX and others pushed back on this saying VOIP is pervasive and you can sign up to any number of telephone over Internet providers, but it appears the FCC stood firm in this case. Search for "SpaceX" in this document to read more about that:
https://docs.fcc.gov/public/attachments/FCC-20-5A1.pdf
As it happens, when you provide telephone service, there is usually a mandate for battery backup in case of power failure. VOIP providers usually deal with this by providing a small UPS that lasts 8 hours to power just the voice features. Anyways, if SpaceX bids and wins, expect them to have a separate telephone option. It isn't hard to do, nor expensive, just takes engineering.
Here was SpaceX's presentation to the FCC requesting the rule change for latency considerations:
https://ecfsapi.fcc.gov/file/10220006908863/FCC Presentation on RDOF Procedures v3.pdf
These auctions take time, so don't expect much news about this quickly. But it would be a good thing, I think, if SpaceX could carve out some grant money. Stay tuned.
