Verizon is Falling Behind on $2.4 Billion Contract Fulfillment With FAA, USDOT Reveal

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U.S. Transportation Secretary Sean Duffy criticized Verizon on Tuesday, stating that the company is “not moving fast enough” in fulfilling its $2.4 billion, 15-year telecommunications contract with the Federal Aviation Administration (FAA).

Duffy, who intends to request tens of billions of dollars from Congress to modernize air traffic control, spoke following last week’s denial from Elon Musk’s Starlink unit that it was seeking to take over Verizon’s FAA contract.

“I want companies that want to move fast,” Duffy said at a press conference. “I can’t wait 10 years… The American people can’t wait 10 years or 12 years to lay fiber.”

In response, Verizon stated that it is collaborating with the FAA to develop an advanced and safer national air traffic control system.

“We are open and willing to work with companies that may offer complementary services to this new communications network,” Verizon said, emphasizing that it is “actively working with the FAA’s technology teams and our solutions stand ready to be deployed.”

Duffy stressed the need for swift action to upgrade aging systems. “It’s not going to be one company. We’re going to need a lot of companies to buy in and help build up the system,” he said.

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Last week, SpaceX firmly denied reports that its Starlink satellite unit was attempting to take over the FAA telecommunications contract. Reuters has previously reported that the FAA is reviewing Verizon’s agreement.

“Starlink is a possible partial fix to an aging system. There is no effort or intent for Starlink to ‘take over’ any existing contract,” SpaceX posted on X, the social media platform also owned by Musk.

The Government Accountability Office has warned that the FAA must take urgent steps to modernize its aging air traffic control infrastructure, noting that one-third of its systems are unsustainable.

Many Democrats have suggested that the FAA could cancel its $2.4 billion contract with Verizon and award it to Starlink due to Musk’s close relationship with President Donald Trump.

Musk, who leads the Department of Government Efficiency’s federal cost-cutting initiative, has been vocal in his criticism of the FAA’s current telecommunications setup.

Last month, the FAA announced it was testing three Starlink terminals at a government facility in Alaska to ensure stable access to weather information for both pilots and the FAA.