Amazon has applied to the Federal Communications Commission (FCC) for a licence to operate more than 5,000 satellites as part of a new direct-to-device (D2D) network, laying the groundwork for a satellite-based mobile service that could eventually compete with SpaceX and US telecom giants AT&T and Verizon.
If approved, the network could allow Amazon to provide satellite connectivity directly to mobile phones and other connected devices.
Satellite race shifts toward mobile connectivity
Through its $11.57 billion acquisition of Globalstar in April, Amazon gained access to the satellite network powering the Emergency SOS and Find My features on Apple devices. Amazon wants to expand the use of this bandwidth to offer satellite connectivity beyond emergency services, although current bandwidth limitations make a full mobile service unfeasible.
Amazon and SpaceX both aim to launch several thousand more satellites, which could enable nationwide coverage while improving the capabilities of their networks. Such a network could eventually position Amazon as a competitor to traditional mobile carriers in some markets, particularly for coverage in remote areas.
SpaceX has reportedly been considering a similar expansion into mobile networking following the success of Starlink in rural areas around the world. In its IPO prospectus, Goldman Sachs said Starlink could generate more than $100 billion in annual revenue by the end of the decade, far exceeding projected revenue from SpaceX’s rocket launches.
Amazon already has approval to launch 7,700 satellites, although the vast majority are not yet operational.
Blue Origin delays Amazon’s satellite network
Even if regulators approve the licence, Amazon still faces a major deployment hurdle: getting thousands of satellites into orbit.
One obstacle to that deployment is Blue Origin, the rocket company founded by Jeff Bezos. It suffered a significant setback in May when its New Glenn rocket exploded on the launchpad.
Because Blue Origin currently has only one launchpad, the incident has effectively grounded operations for at least several months, with potentially only one more launch taking place this year. Blue Origin is also developing its own satellite service, which would provide high-speed, continuous internet access to business customers.
Amazon is relying heavily on Blue Origin’s New Glenn rocket to deploy its satellite constellation. Given its growing competition with SpaceX in the satellite market, it may not be at the front of the queue to launch satellites aboard its rival’s Falcon rockets.
While Amazon is targeting a network of fewer than 10,000 satellites, SpaceX is pushing for FCC approval to deploy as many as 100,000 third-generation Starlink satellites in low Earth orbit. These would form part of a much larger network capable of providing global coverage.
For consumers, this competition could eventually bring mobile coverage to areas poorly served by terrestrial networks, while placing further pressure on traditional carriers to improve prices, speeds and availability.
Related: SpaceX has also filed with the FCC to deploy up to 100,000 third-generation satellites, underscoring the intensifying race to expand low-Earth-orbit connectivity.