Elon Musk’s space technology company SpaceX has confirmed that recent claims about the Federal Aviation Administration (FAA) possibly canceling a $2.4 billion contract with internet provider Verizon in favor of Starlink are false.
On March 5, 2025, SpaceX announced on X that “there is no effort or intent for Starlink to “take over” any existing contract”, calling the rumors “FUD”, which stands for “Fear, uncertainty, and doubt”.
However, SpaceX did mention on X that “Starlink is a possible partial fix to an aging system,” matching Musk’s recent comments on the social media platform. On February 25, 2025, he stated that “the Verizon system is not working and so is putting air travelers at serious risk”. A few days later, he added that “the Verizon communication system to air traffic control is breaking down very rapidly.”
On March 3, 2025, US Senator Ed Markey publicly criticized Musk’s “alarmist rhetoric” calling it “extreme”. He added that “the administration must ensure federal contracts are awarded through a fair and transparent process, not at the whim of a billionaire with political ties to those in power.”
In its recent post on X, SpaceX also stated that it is working in coordination with L3Harris Tech, the prime contractor for the FAA’s telecommunications infrastructure, adding that the FAA plans “to test the use of Starlink internet as one piece of the infrastructure upgrades so badly needed along with fiber, wireless, and other technologies.”
“Given the critical safety issues, SpaceX signed a loan agreement with L3Harris, providing Starlink kits and service free of charge for an initial testing period,” the SpaceX statement read.
SpaceX said that beyond the initial testing deployment, it is working with L3Harris and the FAA to “identify instances where Starlink could serve as a long-term infrastructure upgrade for aviation safety.”
On February 25, 2025, the FAA stated that it has been “considering the use of Starlink since the prior administration to increase reliability at remote sites, including in Alaska” and confirmed that it is currently testing Starlink in one terminal at its facility in Atlantic City and two terminals at non-safety critical sites in Alaska.
