The Federal Aviation Administration (FAA) is reportedly considering canceling a $2.4 billion contract awarded to Verizon Communications in favor of Elon Musk’s Starlink, according to sources familiar with the matter.
The contract, originally granted in 2023, is part of an initiative to upgrade the FAA’s communication network, which serves as a critical infrastructure for air traffic control across the United States.
If the FAA moves forward with awarding the contract to Starlink, it would mark a significant test of government contracting rules and conflict-of-interest protections. Musk, who leads SpaceX, Starlink’s parent company, is also closely involved with the US government through his role in the Department of Government Efficiency (DOGE), an agency overseeing federal restructuring.
Critics have raised concerns about whether Musk’s influence in government decision-making is playing a role in the FAA’s contract deliberations. Ethics experts warn that any decision favoring Starlink over Verizon must follow proper procurement procedures to ensure fairness and transparency.
The FAA had originally selected Verizon to develop the FAA Enterprise Network Services (FENS) program, replacing an outdated system dating back to 2002. The project aims to connect approximately 4,600 FAA sites, ensuring secure communication and data-sharing between air traffic control facilities.
However, recent reports suggest that the FAA has been testing Starlink’s satellite internet services in remote locations, including facilities in Alaska and New Jersey. The agency cited challenges in maintaining reliable telecommunications and weather data transmission in these regions as a reason for exploring alternative solutions.
Musk has also publicly criticized Verizon’s system, claiming it poses safety risks for air travelers. Meanwhile, Verizon has defended its capabilities, with executives asserting that its system is designed to meet the FAA’s reliability and performance requirements.
While the FAA has stated that “no decisions have been made” regarding the Verizon contract, sources suggest a final determination could come soon. Some reports indicate that senior FAA officials have been hesitant to approve a switch, and any decision to terminate the existing contract could lead to legal challenges from Verizon.
The Washington Post, Bloomberg, and the Register contributed to this report.
