Amazon Intensifies Competition with SpaceX in the Space Internet Market

Amazon has submitted an official application to the US Federal Communications Commission (FCC) to obtain a license to operate a new satellite network designed for mobile phones. According to ixbt.com, this massive project includes 5105 spacecraft, with launches planned to begin in 2028. This step is expected to further intensify Amazon's competition with SpaceX, which currently dominates the global space internet and communications market. This is reported by Techcrunch.com reports .

This initiative comes after Amazon acquired Globalstar's satellite operations a few months ago, which provides emergency communication services to Apple iPhone and IoT devices. According to the submitted documents, the company aims to expand its services using the Globalstar radio frequency spectrum and integrate them with Amazon's LEO broadband internet network.

Market Competition and Financial Opportunities

SpaceX, the main competitor in this direction, plans to spend 20 billion dollars to acquire spectrum from EchoStar to build its mobile constellation. This is considered one of the key growth strategies outlined in the company's IPO documents. However, it is not yet fully known how valuable satellite-based mobile communications will be, as such services typically have limited bandwidth and are only suitable for text messages or emergencies.

Srini Gopalan, head of T-Mobile, which provides communication services to its customers using SpaceX satellites, noted at a conference in the spring that there was no significant consumer interest. According to him, based on data from May, the use of the satellite network accounted for only 0.0002 percent of total network usage, and such services are mainly used in national parks.

Challenges Faced by Amazon

Amazon is also facing unique challenges in building the network. In particular, the company does not have its own rocket fleet. Earlier, it was planned to rely on Jeff Bezos's Blue Origin company to launch satellites into space. However, the company's New Glenn rocket launch has been postponed and flights are currently suspended following an emergency incident that destroyed the launch pad in May. Therefore, Amazon was forced to ask for an extension of the deadline required by the FCC license to build the network.

Although Amazon is currently lagging behind SpaceX, it has massive financial reserves. According to estimates from late April, the company has 255 billion dollars in current assets, allowing it to continue investing in its network. Meanwhile, SpaceX's capital needs remain much more pressing.