Elon Musk is a Liar – This Should Worry You
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Welcome to Leading the Shift.

a new podcast from Microsoft Azure. I'm your host, Susan Etlinger. In each episode, leaders will share what they're learning to help you navigate all this change with confidence. Please join us. Listen and subscribe wherever you get your podcasts. How much influence should Elon Musk have over the U.S. government's internet infrastructure?

Now, despite President Donald Trump's promise to slash government spending and cut the federal workforce, Elon Musk's SpaceX-controlled network is quietly embedding itself deeper into multiple agencies.

The General Services Administration, or the GSA, has already adopted it at the direct request of Elon Musk's team, and agencies including the Federal Aviation Administration, or the FAA, and the Customs and Border Protection, CBP, are actively considering making the switch to Starlink.

But with Musk serving as both the CEO of SpaceX and a senior advisor to Donald Trump, his involvement is raising some serious ethical red flags. After all, when a government contract conveniently lines the pocket of a White House insider...

people tend to notice. Starlink has built a reputation for providing internet access in remote areas, disaster zones, and even war zones. Unlike traditional internet providers that rely on fiber optic cables and cell towers, Starlink operates through a constellation of lower orbit satellites.

Now, this offers high-speed connectivity almost anywhere around the world. It's a useful service. But the bigger issue isn't whether Starlink works. It's the fact that Elon Musk, a man who can single-handedly decide where and when to activate or cut off internet access, now holds increasing control over government communications. And Starlink has built a reputation for providing internet access in remote areas.

disaster zones, and even war zones. Unlike traditional internet providers that rely on fiber optic cables and cell towers, Starlink operates through a constellation of low orbit satellites, offering high speed connectivity almost anywhere. That's a useful service if you don't mind the fact that its satellites have a five year lifespan and require constant replacement. But the bigger issue isn't whether Starlink works.

It's the fact that Musk, a man who can single-handedly decide where and when to activate or cut off internet access, now holds increasing control over government communications. Now, the GSA's embrace of Starlink came under particularly curious circumstances. According to a former GSA employee, Starlink was installed in its Washington headquarters in mid-February, within days of a request from Musk's Department of Government Efficiency, or DOGE.

Normally, a decision like this would take weeks, even months as agencies conduct reviews on security, procurement, and budget concerns. But apparently, when Musk wants something, bureaucratic red tape magically disappears. Internal documents confirm that a Starlink network was quickly up and running at the agency's office on F Street NW. Now, when asked about it, the GSA just didn't comment.

And then there's the FAA, which already signed a $2.4 billion 15-year contract with Verizon in 2023 to modernize its communication infrastructure. But Elon Musk isn't one to take no for an answer. He took to X to announce that he wanted the FAA to switch to Starlink, claiming the terminals were being sent at no cost to taxpayers.

Now, it sounds generous, except it's unclear what kind of financial arrangement would follow. Bloomberg reported that Musk personally approved the shipment of 4,000 Starlink terminals to the FAA last month, raising questions about whether he's trying to force the agency's hand. The Washington Post has even reported that the FAA was considering canceling its Verizon deal altogether.

CBP is also eyeing Starlink. According to a Department of Homeland Security document obtained by FedScoop, CBP has been interested in the service since 2023 before Trump's return to office. CBP officials have now issued internal paperwork to evaluate Starlink for use in border surveillance. And meanwhile, another unnamed federal agency has been reviewing the service as a backup communications tool in emergency solutions.

Now, this evaluation, which began in February, seems to be proceeding through the normal channels. Whether that means a contract is inevitable remains to be seen, though. Now, let's talk about why any of this matters to you.

Government contracts aren't just about bureaucracy and budget lines. They directly impact you, the taxpayers. Now, if Musk's Starlink becomes the government's go-to provider, that means your tax dollars could be funneled into a private business controlled by one of the most politically influential figures in the country.

And if decisions about Internet access in emergency situations, military operations, or even civilian infrastructure are left up to a single private company or to Elon Musk, that creates a level of dependency that should make people uneasy. Just ask Ukraine, which learned the hard way that Musk alone decides whether its Starlink terminals stay online during wartime.

Then there's the question of competition, or lack thereof. The government is supposed to award contracts through a fair bidding process, ensuring taxpayers get the best service at the best price. But if Musk's direct access to the White House gives him an inside track, other providers like Verizon or AT&T may not stand a chance.

Now, the result is less competition, higher costs, and a system that's increasingly controlled by one billionaire with an unpredictable track record of business decisions made via late night social media posts.

Now, not everyone in Washington is thrilled about this, though. Senator Maria Cantwell, top Democrat on the Senate Commerce Committee, has called Musk's efforts to interfere with the FAA's existing contract serious red flags. She pointed out that federal procurement laws require open competition and transparency, two things that seem to be missing from Elon Musk's push to replace Verizon. She said,

Saith said, "We need answers now about how the administration will enforce these laws to ensure aviation safety takes precedent over private gain." SpaceX is downplaying any suggestion that it's trying to take over federal contracts. In a post on X, the company claimed that Starlink is merely a partial fix to an aging system, that it is working with the FAA to explore whether satellite-based internet could be used to modernize aviation communications.

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Now, Verizon isn't backing down, though. The company released a statement last week saying that it's committed to the FAA contract and is already working to upgrade the agency's outdated technology. And the FAA itself has been careful in its response. While it has not directly addressed whether it might cancel its Verizon deal, the agency released a pretty

Pretty vague statement saying that modernizing air traffic control will require multiple companies and multiple technologies, including satellites, fiber and wireless systems. Now, whether that means Starlink will be included or whether it's just a polite way of brushing off Musk's advances remains unclear.

Now, of course, federal contracts are just one part of Starlink's business. The service is already in use by major airlines like United, cruise operators and private customers around the world. And during the Super Bowl, T-Mobile ran an ad bragging about its partnership with Starlink to improve rural coverage. Now, according to SpaceX, more than 5 million people across 125 countries now use Starlink.

For individual customers, Starlink offers plans at about $80 per month for low usage, while the standard home plan costs $120 per month with a $149 setup fee.

Now, Elon Musk has claimed that Starlink's revenue will help Starship and pay for humanity to get to Mars, though SpaceX doesn't disclose whether the service is profitable yet. In fact, in 2022, Musk admitted Starlink was losing money. That hasn't stopped him from aggressively expanding the service or from seeking more government contracts.

Meanwhile, competitors are racing to catch up. European company Eutelstat is in talks with the EU to supply satellite internet to Ukraine with its OneWeb service. Amazon is developing Project Kuiper, its own low-orbit satellite internet system. And the Trump administration is also reviewing a proposed merger between satellite operations and

SES and Intel sat, which could create a stronger rival to Starlink. Hey, thanks for watching today. I really do appreciate your support. If you like this content, give it a thumbs up. And I really want to know what you think about this. Leave a comment down below about what you think about this. Do you think Elon and Starlink are going behind the American people's back in procuring these contracts without the proper channels?

Let me know what you think. I want to have a conversation about this. Let's open this up to everybody. Again, thank you so much for watching today. Take care of yourselves and each other, and I'll see you in the next one.