Key facts
- Amazon has applied to the FCC for a license to operate a new satellite network.
- The proposed network will comprise 5,105 satellites.
- The service aims to provide connectivity to mobile phones.
- Amazon recently acquired Globalstar's satellite operations.
- SpaceX is also expanding its satellite-to-mobile services.
Amazon has submitted an application to the Federal Communications Commission (FCC) for a license to operate a new satellite network designed to provide service to mobile phones. The company plans to launch 5,105 satellites starting in 2028.
This move follows Amazon's recent acquisition of Globalstar's satellite operations, which currently offer emergency connectivity for Apple iPhones and Internet-of-Things devices. Amazon intends to utilize Globalstar's radio spectrum to expand these services and integrate them with its own broadband internet satellite network, Leo.
The expansion sets the stage for increased competition with SpaceX, a dominant player in both satellite internet and direct-to-mobile satellite services. SpaceX is reportedly investing $20 billion to acquire spectrum from Echostar for its own mobile constellation.
However, the market viability of satellite-to-mobile connections remains uncertain, with current offerings typically limited to basic text messages or emergency use due to low bandwidth. T-Mobile CEO Srini Gopalan noted that satellite usage constitutes a mere 0.0002% of their total network traffic, primarily concentrated in national parks.
Amazon also faces a significant hurdle with its reliance on Blue Origin for satellite launches. Delays and an anomaly affecting Blue Origin's New Glenn rocket have impacted Amazon's launch schedule, necessitating an extension request for its FCC license build-out deadline. Despite these challenges, Amazon's substantial financial reserves of $255 billion in current assets provide a strong capacity for continued investment, potentially outpacing SpaceX's pressing capital needs.