Musk’s Starlink Could Get Verizon’s FAA Airspace Deal Canceled

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Musk’s Starlink Could Get Verizon’s FAA Airspace Deal Canceled

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, but it appears that Elon Musk’s Starlink is about to blow the entire thing off.

Bloomberg reports that the FAA may be considering canceling its deal with Verizon, citing unnamed people familiar with the matter. If the information is true, Elon Musk’s SpaceX may take on more responsibilities for upgrading airspace networks for US airspace. Furthermore, the report suggests that canceling the deal with Verizon is one of the options that the FCC is currently considering. The other option for the FCC is to allow Verizon to continue to work but also provide some work to SpaceX, suggests the source.

The whole fiasco with Verizon’s airspace contract started when the FCC began testing SpaceX’s Starlink internet terminals for some of the planned upgrades. Notably, the agency is testing one of the Starlink terminals at its facility in Atlantic City and two terminals at non-safety-critical sites in Alaska, suggest the reports. The FAA is considering Starlink to enhance telecommunication connections for more reliable weather information in remote areas, such as Alaska.

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Furthermore, the report claims that Elon Musk has approved the shipment of 4,000 Starlink terminals for the FAA. Called TDM X, the program will become fully operational within the next 12 to 18 months. As of now, it’s not clear how the FFA’s use of Starlink terminals will complicate the administration’s contract with Verizon.

The telecom operator hasn’t yet commented on the matter. The FAA, on the other hand, has long considered using Starlink technology to enhance airspace safety in remote areas. The move also comes amid a rise in airplane accidents across the country in recent months.

It’s worth mentioning that in a post on X on Monday, February 24th, SpaceX CEO Elon Musk said that Verizon’s system isn’t working properly and it’s putting air travelers at risk. If the deal remains intact, Verizon will soon operationalize its airspace systems. That said, Joe Russo, Verizon’s Executive Vice President, said that the company’s network could coexist with Starlink.