Highlights:
- Amazon has launched the first 27 satellites for its $10 billion Project Kuiper, marking the start of its low-Earth orbit broadband network.
- The initiative aims to rival SpaceX’s dominant Starlink system, which already has over 7,200 satellites in orbit.
- Project Kuiper’s goal is to deploy 3,236 satellites, with plans to begin offering service later in 2025.
- Analysts question whether Amazon is entering the market too late to effectively compete.
- The project could yield long-term benefits for Amazon’s other business arms, such as AWS and logistics.
Amazon took a significant leap into the satellite internet race on Monday evening, launching 27 satellites aboard an Atlas V rocket as part of its long-anticipated Project Kuiper. The mission, which lifted off from Cape Canaveral Space Force Station at 7 PM ET, marked the first real step toward deploying a constellation designed to rival SpaceX’s powerful Starlink network.
With a total goal of placing 3,236 satellites into low-Earth orbit, Project Kuiper is a $10 billion initiative intended to deliver high-speed, low-latency internet access to underserved and remote regions globally.
Monday’s launch was the first of as many as five more scheduled for this year, signaling Amazon’s intent to move swiftly.
Competing in a Crowded Sky
Amazon enters a market dominated by SpaceX, which already has over 7,200 Starlink satellites operational and aims to expand to 34,400. In contrast, Amazon is under a U.S.
Federal Communications Commission mandate to deploy at least 1,618 satellites by mid-2026 to retain its spectrum license. “While this is the first step in a much longer journey to launch the rest of our low Earth orbit constellation, it represents an incredible amount of invention and hard work,” Amazon CEO Andy Jassy said in a statement.
Although Kuiper satellites orbit at around 280 miles above Earth—slightly lower than Starlink’s—the technological and financial challenges remain steep. Building the first-generation network could cost up to $17 billion, with annual costs ranging from $1 billion to $2 billion, according to financial analysts.
Analysts Remain Skeptical
Despite the successful launch, Wall Street remains cautious. “Kuiper is going to have a long way to go to catch up,” Craig Moffett of MoffettNathanson told CNN. He warned the project may be entering too late to capture significant market share, particularly with SpaceX’s head start and growing presence in defense, aviation, and rural connectivity.
However, Project Kuiper is not without strategic upside. Analysts note that it could bolster Amazon’s Web Services and provide critical infrastructure for its logistics and delivery networks. It may also appeal to global stakeholders seeking alternatives to SpaceX, which has become entangled in geopolitical controversies.
Rajeev Badyal, vice president of Project Kuiper, remained optimistic: “This is just the start of our journey, and we have all the pieces in place to learn and adapt as we prepare to launch again and again over the coming years.”
As Amazon pushes forward, the question remains: Can it scale quickly enough to carve out a viable slice of the satellite internet market, or has the Starlink juggernaut already closed the window of opportunity?
Also in the News: