Elon Musk’s SpaceX is seeking to deploy its Starlink satellite internet terminals to modernize the US Federal Aviation Administration’s (FAA) national airspace system, potentially impacting a $2 billion contract already awarded to Verizon Communications Inc, Bloomberg reports.
Sources familiar with the matter, who were not authorized to speak publicly, revealed that Musk recently approved the shipment of 4,000 Starlink terminals to the FAA for the initiative, dubbed “TDM X,” with the aim of full functionality within 12-18 months. One terminal is already undergoing testing at the FAA’s air-traffic control technology lab in Atlantic City, New Jersey.
An FAA spokesperson confirmed the agency is testing one terminal in Atlantic City and two at non-safety critical locations in Alaska, stating the agency is considering Starlink to improve telecommunication connections and provide more reliable weather information to remote sites, particularly in Alaska.
However, the proposed integration of Starlink raises concerns about potential conflicts of interest, given Musk’s extensive business empire and influence within the US government. Musk is overseeing a broad effort to reshape the government under President Trump and holds significant contracts with other federal agencies. Furthermore, the FAA is the aviation safety regulator overseeing SpaceX rocket launches.
The potential use of Starlink terminals also raises questions about the future of a $2 billion contract awarded to Verizon in 2023 for critical infrastructure upgrades. Verizon spokesman Rich Young stated that the company’s contract supports the FAA in maintaining and upgrading its infrastructure.
The drive to modernize the FAA’s aging airspace network has gained urgency following a deadly midair collision in January near Ronald Reagan Washington National Airport. Following the crash, President Trump labeled current air-traffic control technology “obsolete.”
This move marks another expansion of SpaceX’s reach into governmental and commercial sectors worldwide, a trend amplified by Musk’s growing political influence. In December, SpaceX secured a Pentagon contract to enhance Ukraine’s access to a more secure version of the Starlink network.
