Amazon recently launched Project Kuiper as a way to try to wiggle its way into the satellite internet world. The goal is to offer internet services to customers in the United States and in other countries if the technology supports the endeavor. Although the satellites for the project haven’t been put in orbit just yet, there are a few other details that have launched pretty high up as Amazon has made it clear that the company wants to try to compete with Starlink by SpaceX and HughesNet internet. There are few details about the overall price of the project or when Amazon might get the satellites in the air, but there are some details that are of interest to customers and possibly some investors.
What is Kuiper?
The overall goal of Project Kuiper is to try to close the digital divide that exists in the country. The satellites will be low in orbit, which means that Amazon will be able to better control where the beams from the equipment reach. This could allow for more internet options for customers who live in rural areas and might not be able to connect to other internet options. Aside from offering internet service to areas that might not have a stable connection or no connection at all, the company hopes to offer faster and reliable internet compared to what customers might experience from other satellite companies.
Most companies that use satellites to offer internet to customers have placed their equipment around 22,000 miles in orbit. The satellites then stay in one place most of the time, reaching only a certain area. Amazon hopes to avoid this by putting its satellites closer to the surface. The lower orbit could also play a role in higher speeds.
Dates
Amazon hasn’t released a date for launching its satellites, but the company does believe that it could be a few years from now. Details of the project were released in 2019, but there hasn’t been a lot of movement regarding launching the satellites to get them into orbit. Amazon received approval from the Federal Communications Commission in 2020 so that it could begin the process of deployment. The company also noted that there would be at least $10 billion invested. If Amazon wants to compete with other satellite companies, then it needs to launch about 1,500 satellites by sometime in 2026. Since there’s such a tight window to get the project up and running, Amazon will likely need to rely on the assistance of a few other companies until it has everything in place. A deal has already been made with United Launch Alliance.
Price
Even though Amazon hasn’t revealed any details about pricing, it will likely be competitive when the project is initially launched. However, Amazon wants to offer internet service to as many people as possible while keeping the costs associated with the project as affordable as possible. Prices could be comparable to those seen with Starlink since the concepts are similar. The antennas on the satellites will be smaller, which can save the company money. These savings could then be transferred to customers.
Who it Benefits
People who don’t have access to reliable internet services will likely benefit the most from this project. Amazon also hopes to offer lower latency compared to competing satellite companies. The launch could be beneficial for those who might not be able to get online for work or school and tend to fall behind because of this disadvantage, which is where Amazon wants to look as a way to bridge the digital gap.
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