Amazon is About to Go Head to Head With SpaceX in a Battle for Satellite Internet Dominance

upstart writes:

In its bid to catch up with Starlink, the company plans to build as many as four satellites a day:

Amazon has applied to the FCC to increase its constellation to 7,774 satellites, which would allow it to cover regions further north and south, including Alaska, as Starlink does.

There are riches to be had: SpaceX currently charges $110 a month to access Starlink, with an up-front cost of $599 for an antenna to connect to the satellites. According to a letter to shareholders last year, Amazon is spending "over $10 billion" to develop Kuiper, with more than 1,000 employees working on the project. Andy Jassy, Amazon's current CEO, has said that Kuiper has a chance of becoming a "fourth pillar" for the company, alongside its retail marketplace, Amazon Prime, and its widely used cloud computing service, Amazon Web Services

"Amazon's business model relies on people having internet connectivity," says Shagun Sachdeva, an industry expert at the space investment firm Kosmic Apple in France. "It makes a lot of sense for them to have this constellation to provide connectivity."

Amazon is not yet disclosing the pricing of its service but has previously said a goal is to "bridge the digital divide" by bringing fast and affordable broadband to "underserved communities," an ambition Starlink has also professed. But whether costs will ever get low enough for that to be achievable remains to be seen. "Costs will come down, but to what extent is really the question," says Sachdeva. On March 14, the company revealed it was producing its own antennas at a cost of $400 each, although a retail cost has not yet been revealed.

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