Elon Musk said Thursday that Verizon’s efforts to provide a critically needed upgrade to the FAA’s air traffic control system is failing. And he said that it is important that Starlink, a unit of his SpaceX satellite and rocket company,
The US Federal Aviation Administration is nearing a decision on whether to cancel a $2 billion Verizon Communications Inc. contract, according to people familiar with the matter. That would be a crucial step that could clear the way for billionaire Elon Musk’s SpaceX to take on more work upgrading information technology networks for the national airspace system.
The Federal Aviation Administration (FAA) is testing the use of SpaceX’s Starlink satellite internet terminals in the airspace system despite a deal it struck with Verizon in 2023. The FAA awarded Verizon a $2 billion deal to improve the national airspace system,
Starlink satellite terminals and other equipment have already been installed in FAA facilities as a prelude to its potential takeover of the $2 billion contract — won by Verizon in 2023 — government employees and contractors told the news service.
The agency is said to favor awarding the contract work to Starlink, owned by Elon Musk's SpaceX ( SPACE ). This has fueled concerns of conflicts of interest in government projects, as Musk heads DOGE - the department that President Donald Trump has tasked with reducing federal spending.
Despite years of planning to build back better, initiatives to improve public infrastructure still await the light of day.
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