Amazon to invest $13.7b in satellite broadband plan

Andrew Cummings
August 2, 2020

In a move that will turn Amazon into an internet satellite provider, the Federal Communication Commission (FCC) approved the company's Project Kuiper.

That is the foundation of Amazon's Project Kuiper, an activity to make a satellite-based broadband network access meant to give fast, low-dormancy associations with USA - based family units that presently don't have extraordinary access to a rapid association.

The $10 billion investment will be utilized to build Amazon's ground network, accelerate the manufacturing, testing of the satellites, and ultimately deliver an affordable customer terminal providing fast internet.


The company has until 2026 to launch half of the constellation to retain its FCC license, and then the remaining satellites by 2029. Amazon says that it aims to deliver internet to "individual households" as well as to "schools, hospitals, businesses and other organizations operating in places without reliable broadband".

"There are still too many areas where broadband access is unreliable or in which it will not exist in any way. Kuiper will change that", Amazon Vice President Dave Limp said in a statement. Amazon's design of the Kuiper satellites is not complete, so the company will need another FCC approval after it submits a final plan for orbital-debris mitigation, collision risk, and "re-entry casualty risk". With this, she is going to open a research center in Redmond Washington, where these satellites will be developed.

The plan is to send devices into three different altitudes and the firm claims just 578 satellites are needed to being service for paying customers - while Musk's SpaceX needs at least 600.


Amazon will spend $10 billion on Project Kuiper. It can also become a new business for Amazon to sell Internet services to people and companies.

By examination, SpaceX has released more than 500 satellites of the approximately 12,000 expected for its Starlink heavenly body in low Earth circle and plans to offer broadband assistance in the United States and Canada constantly end.

Amazon should see the same access and capture of the telecommunications market, which has led to tense regulatory battles with SpaceX and other companies - even leading to Musk calling Bezos a copycat.


Amazon shares closed 0.6% higher at $3,051.88 on Thursday and gained 5% in the after-hours session to $3,204.60.

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