FCC pays $340k/year to keep 100's of empty Alaska buildings wired for internet
14 hours ago
- A subsidized internet service on the remote island of Adak, Alaska, costs over $340,000 annually, with federal funds from the Universal Service Fund used to connect mostly vacant buildings, despite residents using Starlink instead.
- The FCC continues to pay subsidies to telecom companies like Adak Eagle, even after reports of misuse and slow service, while company president Larry Mayes declined to comment and the FCC did not respond to inquiries.
- Adak's population is small (estimates range from two dozen to 77), making the subsidy amount to about $14,000 per person annually, with no evidence that anyone uses the subsidized internet, as found through door-to-door visits.
- Residents prefer Starlink for its faster speeds (up to 447 Mbps) and lower costs ($90-$140/month), compared to Adak Eagle's slower service (1-10 Mbps) and higher prices ($99-$550/month).
- Adak Eagle received millions in subsidies and loans, including $3.6 million since 2016 from the federal broadband program and additional funds from other sources, despite past issues like the owner's salary being deemed unreasonable and spending on non-essential items.