Amazon Enters Satellite Internet Market, Signaling Competition with Starlink

Amazon has officially entered the satellite internet market with an investment of $11.57 billion. This move is seen as a signal that the tech giant intends to compete with Elon Musk's Starlink for the global internet market.

Amazon has secured Globalstar, and plans to leverage Band 53 spectrum, which Globalstar has operated for over 30 years. This spectrum is a specific frequency band that has received official authorization for global use, making it advantageous for communication. Based on this technology, Amazon aims to provide satellite communication services directly to devices such as smartphones. By acquiring Globalstar's assets (satellites, infrastructure, and global licenses), Amazon will support services enabling cell phones to send texts, make calls, and transmit data without cellular signals.

Currently, Starlink has over 9 million users and operates approximately 10,000 satellites, whereas Amazon's Project Kuiper network has over 200 satellites. Even with the addition of Globalstar's assets, there is still a significant difference in the number of satellites. Amazon's $11.57 billion investment is focused on securing future communication capabilities rather than a rapid increase in satellite numbers.

With the acquisition of Globalstar, Amazon plans to offer services that deliver voice, data, and messages directly to mobile phones through its next-generation direct-to-device system, slated for launch starting in 2028. This aligns with Apple's collaboration to support emergency messaging and roadside assistance features on devices like iPhones and Apple Watches. Users will utilize Amazon's network when employing satellite-based emergency rescue features, even in areas with no cellular coverage.