L3Harris and Verizon to Keep Their Telecommunications Contracts

The Federal Aviation Administration is shutting down rumors that Elon Musk’s Starlink services could boot L3Harris and Verizon from their long-standing telecommunications contracts. These assertions do not, however, keep Musk from biting at this year’s increased budget for infrastructure modernization.

In a letter to Congress, FAA Administrator Bryan Bedford stated unequivocally that the agency has not “considered replacing the awardees of those contracts with SpaceX.” Bedford also noted that Starlink, or any satellite service, would not be used as the sole communications platform for critical air traffic services. The FAA currently manages telecom modernization through contracts already awarded to L3Harris and Verizon.

The current budget includes $12.5 billion for air traffic control upgrades, much of which is focused on replacing the aging copper wire system with fiber. Secretary of Transportation Sean Duffy emphasized that the shift to fiber, not a pivot to satellite technology, is the primary goal. He also confirmed that legacy obsolescence fees, which once cost the FAA $800 million annually, will be eliminated as part of the fiber transition.

While Starlink publicly acknowledged in March that its technology could offer a “partial fix” to FAA infrastructure problems, the company also stated it had no intention of taking over existing telecom contracts. Nonetheless, political tension has surrounded the issue. Some lawmakers raised concerns that the FAA might cancel Verizon’s $2.4 billion 15-year contract, citing Musk’s growing influence in federal cost-cutting efforts and his previous criticism of the FAA's current system.

The speculation intensified when the FAA began testing a small number of Starlink terminals, including sites in Alaska and New Jersey. However, these tests were part of a broader evaluation by L3Harris, which is tasked with exploring multiple technologies (fiber, wireless, and satellite) as part of the agency’s modernization strategy. Approximately 4,000 Starlink terminals have been sent to the FAA for evaluation, but these are being tested under existing contracts.

Although Starlink’s performance and coverage are widely regarded as strong, concerns have been raised about Musk’s dual role as both the CEO of a federal contractor and the head of the Department of Government Efficiency, which has imposed budget cuts on the FAA. For now, FAA leadership maintains that neither L3Harris nor Verizon is being pushed aside, and Starlink’s role remains purely experimental.

FMI: www.starlink.com