The U.S. Federal Communications Commission on Tuesday reaffirmed its 2022 decision to deny SpaceX satellite internet unit Starlink $885.5 million in rural broadband subsidies.
The FCC said the decision impacting Elon Musk's space company was based on Starlink's failure to meet basic program requirements and that Starlink could not demonstrate it could deliver promised service after SpaceX had challeged the 2022 decision.
So the article doesn’t give any claimed reasons, seems very biased or at least poorly written.
From some of the gaps in the article and way too much speculation, I think the reasons were:
Existing service didn’t meet a bandwidth requirement
Scale out requires Starship, which has not flown yet
So I do believe this is our best hope for universal rural broadband, but it’s not a done deal. It’s never been done and the launch rate is beyond current technology, so there is no way to predict. At least traditional providers have known technology, and lots of experience. They suck and will never deliver but they could.
No, the article reports as much information as is publicly available. If the FCC wanted to be more specific in their reasoning, they would've been. Reporters can't just magically make recalcitrant public officials talk. This is an example of poor media literacy on your part.