Elon Musk's SpaceX Pushing To Integrate Starlink In US Airspace Network, Raising Conflict Of Interest Concerns

Elon Musk's SpaceX is reportedly pushing to deploy Starlink satellite internet terminals within the U.S. Federal Aviation Administration's national airspace network — a move that raises concerns over conflicts of interest and the status of Verizon Communication's VZ existing contract to upgrade the system.

What Happened: Musk approved the shipment of 4,000 Starlink terminals to the FAA last week to support the agency's IT infrastructure overhaul, reported Bloomberg, citing a person familiar with the matter.

One terminal has already been installed at the FAA's air-traffic control technology lab in Atlantic City, New Jersey, for testing.

The FAA manages 45,000 flights carrying nearly 3 million passengers daily.

See Also: Tesla Exec Confirms Roadster Update Talks, Collaboration With SpaceX For Top Specs

In 2023, Verizon was awarded a $2.4 billion contract to lead the network upgrade, but it remains unclear how Starlink's involvement could affect that agreement, the report noted.

Verizon denied knowledge of any changes. It told the publication that the company has "no indication that these reports are accurate."

Why It Matters: Musk's deepening involvement in government infrastructure projects could spark scrutiny, especially as the FAA is also responsible for regulating SpaceX's launches.

Musk's Starlink currently faces challenges from China’s SpaceSail and Jeff Bezos’ Project Kuiper, both of which are expanding their satellite networks.

Earlier, Starlink’s rapid deployment was praised by President Donald Trump, who highlighted its crucial role during Hurricane Helene’s aftermath in North Carolina.

As SpaceX remains privately held, Musk last year dismissed the idea of an IPO, citing the pressure for short-term results in public companies.

Price Action: Verizon’s stock rose 0.023% in after-hours trading to reach $43.33. Earlier on Monday, it closed at $43.32, marking a 1.31% gain, according to Benzinga Pro data.

Photo by Rokas Tenys on Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.