Wed, Mar 05, 2025
FAA’s Starlink Satellite Testing Raises Concerns for Verizon’s $2 Bil Contract
It seems that the Federal Aviation Administration is preparing to overhaul a major contract with Verizon and replace it with SpaceX’s Starlink communications technology. The fifteen-year, $2.4 billion deal was awarded to Verizon in 2023.
Reports of a potential SpaceX takeover came into focus when the FAA began testing one Starlink terminal in New Jersey and two more in Alaska. The aerospace manufacturer is working to have its Starlink program, dubbed “TDM X,” operational in 12 to 18 months. It has already shipped approximately 4,000 Starlink terminals to the FAA.
This involvement allows SpaceX to take the lead in the FAA’s modernization program, intruding on the previous $2.4 billion agreement given to Verizon in 2023. Joe Russo, Executive Vice President of Verizon, attempted to settle things by stating that Starlink could “be complementary to what we're trying to build to really run the FAA infrastructure.”
SpaceX and Starlink CEO Elon Musk, however, saw the opportunity to undermine a competitor and took it. He posted on his social media platform X that “The Verizon system is not working and so is putting air travelers at serious risk.” Musk revoked his statement after realizing that the current communications system is operated by L3Harris, and Verizon’s has not yet gone into service.
While Starlink has an indisputable reputation and proven technology, many see the potential contract change as a political incursion. Musk was recently tasked with running the new Department of Government Efficiency, which has issued cost cuts for numerous federal agencies, the FAA among them. The FAA is responsible for regulating SpaceX, sparking a possible conflict of interest.
“I’m demanding Sec. Duffy explain why his agency is suddenly selecting Musk’s Starlink for FAA use after a contract was already signed with Verizon,” argued Senator Richard Blumenthal. “This new deal reeks of corrupt, self-serving abuse of taxpayer dollars.”
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