Amazon is preparing to launch the first 27 internet satellites of its Project Kuiper constellation, marking a new phase of rivalry between two of the world’s richest men, Jeff Bezos and Elon Musk.
The launch, set to take place aboard a United Launch Alliance Atlas V rocket on April 9, will mark Amazon’s entry into the satellite broadband market, currently dominated by SpaceX’s Starlink.
While Starlink has already placed more than 8,000 satellites into orbit and serves more than 4.6 million people globally, Amazon’s long-awaited debut brings serious competition, backed by its $10 billion investment and the power of its global logistics, e-commerce and cloud services ecosystem.
Kuiper’s game plan: leverage Amazon’s empire
Analysts say Kuiper is not aiming to beat Starlink at its own game.
“Amazon doesn’t need to compete with Starlink head-on to win,” said Sahith Madara, founder of advisory company Bumi & Space. “Its real advantage lies in integration – leveraging its e-commerce platform AWS (Amazon Web Services) and logistics network to create bundled services that serve consumers and enterprises.”
Mr Madara said that Amazon has a track record of entering mature markets and still managing to dominate.
“Kuiper could mean seamless connectivity for AWS-powered infrastructure, or bundling Kuiper access with Prime in underserved regions,” he said. “Rather than chasing mass consumer markets immediately, Kuiper can focus on enterprise, government and IoT sectors – areas where Amazon already has deep reach.”
Kuiper has already signed launch agreements with three major rocket providers, including United Launch Alliance, Blue Origin and Arianespace, and aims to deploy more than 3,200 satellites in low Earth orbit over the next six years.
It has also announced plans to manufacture user terminals in-house to help drive down costs and scale quickly.
Dr Sarath Raj, director of the satellite ground station at Amity University Dubai, said this strategy could allow Kuiper to edge into markets that Starlink has yet to fully dominate.
“Kuiper can differentiate itself by focusing on enterprise and government contracts, expanding into developing nations, enhancing maritime and aviation connectivity and leveraging AWS for 5G and IoT integration,” said Dr Raj. “Starlink has struggled to secure government contracts beyond the US, but Kuiper is able to pursue international agreements with defence departments, airlines and enterprises.”
He said that Eutelsat OneWeb, through partnerships with the UK government and India’s Bharti Airtel, has been able to establish footholds in regions where governments seek alternatives to Starlink.
“Kuiper can ally with countries like Indonesia or Brazil by offering low rates and cloud-based educational services – something Starlink may not be prioritising,” he said.
Developing world is key
The developing world is emerging as a key arena for the satellite internet race. Both Dr Raj and Mr Madara said that emerging economies will largely shape the success of both Starlink and Kuiper.
“Emerging economies will be the pivotal actors for Starlink and Kuiper – they hold the bulk of the untapped users,” said Mr Madara. “But gaining traction there means navigating local demands. Many countries insist on local partnerships, infrastructure investment or regulatory concessions before opening their markets.”
India only approved Starlink after it partnered with domestic telecoms, while South Africa has required foreign operators to include 30 per cent local ownership in their operations. “And China, of course, is building its own constellation while keeping foreign systems out,” he said.
Dr Raj said that local politics and national security will also play a significant role. “India’s Reliance Jio and Bharti Airtel (via Eutelsat OneWeb) are introducing local satellite services, and it is challenging for foreign players to compete,” he said. “SpaceX has been excluded in China, and government-backed companies like China SatNet have thrived as a consequence. Amazon may have to face similar barriers.”
Demand in the market
While SpaceX is dominating the satellite internet business, Mr Madara said he believes there is still space in the market.
“The global demand is so massive but only a few companies have the deep pockets and staying power to go truly global,” he said. OneWeb, for example, merged with Eutelsat in 2023 to compete with giants like Starlink.
Dr Raj echoed Mr Madara’s thoughts on the market. “Despite multiple players including Starlink, OneWeb, Viasat, and soon Kuiper, the market is unlikely to consolidate into a monopoly,” he said. “Rather, a duopoly or an oligopoly in which companies dominate different markets and bases of consumers may arise.”
