Amazon's new satellite network could pressure SpaceX
Amazon has asked the FCC for a license to run 5,105 satellites that would serve mobile phones, with launches planned from 2028. Amazon's new satellite network builds on its Globalstar purchase and Leo broadband constellation, putting more competitive pressure on SpaceX in satellite-to-mobile connectivity.
Key Takeaways
- Amazon filed an FCC application for 5,105 satellites aimed at mobile phones, with launches planned to start in 2028.
- The plan follows Amazon's acquisition of Globalstar's satellite operations and would use Globalstar spectrum alongside Amazon's Leo network.
- SpaceX still leads satellite internet and satellite-to-mobile, and has pledged about $20 billion for Echostar spectrum.
- Demand remains uncertain: T-Mobile's CEO said satellite use was just 0.0002% of network traffic.
- Amazon lacks its own rockets and faces Blue Origin New Glenn delays, but holds $255 billion in current assets.
What did Amazon file with the FCC?
According to TechCrunch, Amazon applied for a license to operate a new network of 5,105 satellites that would provide service to mobile phones. The company plans to begin launching those satellites in 2028.
The filing comes several months after Amazon acquired Globalstar's satellite operations. Globalstar already supplies emergency connectivity to Apple iPhones and internet-of-things devices. Amazon intends to use Globalstar's radio spectrum to expand those offerings and integrate them with Leo, its broadband internet satellite network.
Why does this matter for SpaceX?
The move intensifies rivalry with SpaceX, which has dominated both satellite internet and satellite-to-mobile services. SpaceX plans to spend $20 billion buying spectrum from Echostar to build out its mobile constellation, a growth strategy highlighted in its IPO filings.
Amazon still lags SpaceX, but its balance sheet is a major advantage. As of the end of April, Amazon reported $255 billion in current assets, giving it room to keep funding the network while SpaceX's capital needs look more urgent.
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Will people actually use satellite-to-phone links?
It is still unclear how valuable satellite-to-mobile links will prove. Most current services offer limited bandwidth, suited mainly to text messages or emergencies rather than everyday data.
T-Mobile, which uses SpaceX satellites for customer satellite connectivity, has seen little uptake. CEO Srini Gopalan said this spring that May data showed satellite usage at 0.0002% of total network usage—"three zeros"—and that use was largely focused on national parks.
What launch hurdles does Amazon face?
Amazon does not have its own rocket fleet. It had planned to rely on Jeff Bezos' Blue Origin and the New Glenn rocket. New Glenn has been delayed and is now grounded after an anomaly that destroyed its launch pad in May.
Because of those setbacks, Amazon had to request an extension to the FCC deadline for building out its network. Even so, the company's deep capital reserves mean it can keep investing while it works through launch constraints.