Amazon and SpaceX's Race to Dominate Satellite Internet Explained
The battle amongst the world’s richest for the top spot on Bloomberg’s Billionaires Index appears to be moving from Earth to space. This time it's a struggle to control the largest share of satellite internet, specifically after Amazon under Jeff Bezos entered the space internet race to compete with Elon Musk’s SpaceX Starlink system and dominate space internet real estate. But what’s the story behind this exciting space race?
What is Amazon's Project Kuiper?
Just a few days ago on October 6th, Amazon’s space subsidiary Kuiper Systems LLC announced the launch of its first two satellites, KuiperSat-1 and KuiperSat-2, for Project Kuiper. The launch took place from Cape Canaveral in Florida.
With the satellites, Amazon will start collecting real-world data after years of lab testing and simulation. The satellites are prototype models that will be used to gather information for a space internet network of 3,236 satellites orbiting the Earth. Amazon aims to have the network provide internet connectivity around the globe by 2028.
Rajeev Badyal, VP of Technology for Project Kuiper, stated: “We started Project Kuiper to not only connect unserved and underserved communities, but also delight customers with the quality, reliability, and value of their services. This is the first time Amazon has sent satellites to space, we’re excited to complete this mission.”
Its main competitor, SpaceX's Starlink, has been growing rapidly since 2019. It already has over 4,500 active satellites around Earth, providing commercial and residential services to most of the Americas, Europe and Australia. Documents seen by the Wall Street Journal show over 1 million subscribers.
What About Pricing and Speeds for Satellite Internet?
While SpaceX offers a consumer terminal to purchase for around $600 plus monthly service fees, Amazon revealed three terminal types ranging from $400-$600 covering all community needs. It hasn't disclosed monthly internet pricing, expected to rollout by end of 2024.
For speeds, Amazon says the small consumer-focused terminal will deliver 100 Megabits per second (Mbps). The mid-sized model provides up to 400 Mbps, while their largest enterprise/government model offers up to 1 Gigabit per second.
SpaceX advertises 100-200Mbps for consumers presently, aiming for 1Gbps in future.
The Plot Thickens - Concerns Around Congestion
Despite ambitious hopes for a global internet revolution, the massive satellite constellations required have proven controversial.
There are already thousands of orbital objects around Earth, whether satellites, rockets or debris. More objects increase risks of catastrophic collisions.
The FCC recently bolstered policies around mitigating space junk. Amazon’s satellite industry has pledged to follow best practices like deorbiting satellites after missions.
Astronomers frequently raise concerns about the impact of so many low-orbit satellites darkening night skies. Amazon told CNN they regularly consult with astronomy organizations like the National Science Foundation.
Per 2021 UN data, ~3 billion people worldwide still lack internet access or even basic communications. So this satellite internet battle will undoubtedly help bridge internet gaps and bring billions online.
