FAA Considers Switching $2.4 Billion Communications Contract to SpaceX’s Starlink

The potential move, which could modernize air traffic control systems, raises concerns over conflicts of interest tied to Elon Musk’s government role.

The FAA is evaluating replacing its $2.4 billion communications contract with Verizon to utilize SpaceX's Starlink satellite technology for air traffic control modernization.
Starlink terminals are already being tested in New Jersey and Alaska, with SpaceX providing the equipment at no cost to taxpayers for initial trials.
Elon Musk’s dual role as SpaceX CEO and a federal government advisor under President Trump has prompted conflict-of-interest concerns from ethics experts and lawmakers.
Verizon, which began its 10-year FAA contract in 2023, has defended its progress and expressed willingness to collaborate with Starlink for complementary solutions.
Satellite communication offers global coverage but may face latency issues compared to Verizon’s fiber optic technology, leading experts to suggest a hybrid approach for FAA modernization.