SpaceX denies taking over Verizon and its sweet deal, gives satellite kits at no cost

Despite growing speculation, SpaceX has denied any intent to take over Verizon's contract with the FAA. Elon Musk's famous company said in an X statement that "recent media reports" about SpaceX and the FAA are "false". The company is insisting that Starlink is not seeking to replace  Verizon, but rather contribute to the broader modernization effort.

Verizon, as you probably know by now, has a $2 billion deal to modernize the US Federal Aviation Administration's IT infrastructure. Then, SpaceX's Starlink came along and many went haywire.

In 2023, Verizon secured a 15-year, $2.4 billion contract to upgrade the communication platform used by air traffic control facilities across the nation. However, recent developments suggest that the FAA is now exploring alternative solutions, including Starlink, raising questions about the future of Verizon's contract.

Concerns over the FAA's aging technology took on new urgency following a tragic midair collision over Washington, DC, in January, which killed 67 people. The incident accelerated efforts within the Trump administration to modernize the air traffic control system, and SpaceX has positioned itself as a key player in that initiative.

The company recently announced it had signed a lease agreement to provide Starlink satellite internet kits to the FAA, but at no cost (initially). Although the specifics of the deal remain unclear for the moment, SpaceX claims it is working alongside L3Harris, the FAA's primary telecommunications contractor, to enhance aviation safety through infrastructure upgrades.

While the FAA has not officially canceled Verizon's contract, reports suggest that the agency has been deliberating on the matter. Sources indicated that the agency was close to making a decision on whether to continue with Verizon or shift towards a hybrid approach that includes both Verizon and Starlink. A final decision was expected this month regarding whether Verizon would begin receiving payments for its work on the contract.

Verizon, for its part, has defended its role in the FAA's modernization efforts. Joe Russo, an executive vice president at Verizon, emphasized that the company's network was designed to provide the reliability and performance necessary for air traffic control communications.

He also stated that Verizon's system was expected to be operational soon, though delays in implementation have fueled criticism. In response to concerns about Starlink's growing influence, Russo suggested that the two systems could coexist, with Starlink potentially complementing Verizon's infrastructure rather than replacing it entirely. Sounds logical!