Amazon NASDAQ:AMZN has filed with the Federal Communications Commission for permission to deploy more than 5,000 satellites by 2028, a direct-to-device constellation that would carry voice, messaging, data and emergency services to phones beyond the reach of conventional networks. Shares were down 0.24% intraday.
Cost is the open question. Ben Harwood at New Street Research put deployment at around $13 billion to $20 billion, assuming a design broadly in line with peers and launches handled largely by Blue Origin, Jeff Bezos's rocket company. Amazon says it will use spectrum acquired through its $11.6 billion purchase of Globalstar.
This is an effort to compete with SpaceX's NASDAQ:SPCX Starlink. SpaceX has signed partnerships with T-Mobile US NASDAQ:TMUS and Virgin Media O2 in the UK, and Starlink operates across more than 150 countries. Amazon has over 390 satellites in orbit for broadband against SpaceX's 10,000-plus, and its rollout has slipped enough that the FCC granted an extension in June on a roughly 1,600-satellite deadline falling this month. AST SpaceMobile NASDAQ:ASTS, partnered with Vodafone NASDAQ:VOD, is also chasing the same market.