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Amazon Kuiper launches first satellites to take on SpaceX's Starlink, capitalize on anti-Musk fervor
CNBC· 2025-04-09 18:05
Core Viewpoint - Amazon's Project Kuiper is set to launch its first batch of satellites, aiming to compete with SpaceX's Starlink in the satellite internet market, which is currently dominated by Starlink's extensive customer base and satellite constellation [3][5][14]. Company Developments - Amazon plans to deploy over 3,000 satellites for its Kuiper project, with the first launch scheduled from Cape Canaveral, Florida, aiming to begin commercial service later this year [3][25]. - The company has signed agreements in various countries, including the U.K., Australia, and Indonesia, targeting customers similar to those of Starlink, such as corporations and governments [4][15]. Competitive Landscape - Starlink currently has a significant lead with approximately 8,000 satellites and over 5 million customers globally, while Kuiper is entering the market with a six-year delay [5][14]. - The competition is intensified by geopolitical factors, as countries like Taiwan and Poland are exploring alternatives to Starlink due to concerns over Musk's business ties and reliability [16][17]. Market Dynamics - The satellite internet market is characterized by a demand for more options, with Kuiper being viewed as a viable alternative to Starlink, which holds nearly two-thirds of the active satellite market [14][15]. - Amazon's approach to regulatory engagement contrasts with SpaceX's, as it aims to establish a cooperative relationship with regulators, potentially easing its entry into new markets [19][20]. Future Outlook - Amazon is under a Federal Communications Commission deadline to launch half of its satellite constellation by July 2026, with over 80 launches planned to deploy its satellites [24][25]. - The initial launch is seen as a critical step in the process, with expectations for service to commence later this year [25][26].