The subsidy goes to SpaceX, in exchange for offering service at the required locations at the required performance. There is no requirement whatsoever for Space

The subsidy goes to SpaceX, in exchange for offering service at the required locations at the required performance. There is no requirement whatsoever for SpaceX to pass any of it on to the customers, and in fact doing so would be against the spirit of the offering. It's meant for incentivizing the buildout of infrastructure, not for passing on savings to consumers.