Verizon's huge $2 billion US airspace deal might go up in flames - and Musk is behind it

Musk's Starlink may actually get Verizon's sweet FAA deal canceled

According to a new report, the FAA may be considering canceling its deal with Verizon over Elon Musk's Starlink systems.

In 2023, Verizon was awarded a $2 billion deal to improve the US Federal Aviation Administration's infrastructure. Unfortunately for the carrier, Elon Musk's Starlink came about, and it seems it's about to blow the entire thing off.

Bloomberg now reports that the FAA is considering canceling the contract with Verizon, citing unnamed people familiar with the matter. If that happens, this would mean Musk's SpaceX may take on more responsibilities for upgrading networks for US airspace.

Reportedly, canceling the deal with Verizon is one of the options that are currently being considered. The other one - letting Verizon continue to work but also giving some work to SpaceX, claim Bloomberg's sources. Apparently, a decision may come as soon as Friday, though the situation may be far from being resolved.

On January 26, a spokesperson for the FAA reportedly said that the agency has not made a decision about the Verizon contract yet.

This entire fiasco started because the FAA began testing SpaceX's Starlink internet terminals for some of the planned upgrades. Of course, this move (understandably) led to a conflict of interest. One is clear though - the FAA's systems need to be modernized, and the need for that is definitely not new.

Previously, an FAA spokesperson confirmed that the agency was testing one Starlink terminal in Atlantic City, alongside two terminals at sites in Alaska. The use of Starlink was considered by the agency primarily to fix telecommunication connections and provide more accurate and reliable weather info at remote sites, apparently. The Washington Post also reported that the FAA may cancel the Verizon contract, so for now, it seems Musk is in for a win.

Meanwhile, earlier, the billionaire straight out criticized Verizon's systems on X, claiming the fact that they are not even working yet is putting air travelers at risk. Verizon's systems would reportedly be functional soon (well, that is, if the deal doesn't get canceled). Despite that, Verizon's EVP, Joe Russo, said that Verizon's network could coexist with Starlink.

If Bloomberg's sources are correct, we'll have just a little bit left to wait to see who wins the battle for the US airspace's internet.