Star Wars: How Amazon Is Challenging Elon Musk’s Grip On Satellite Internet

Amazon has announced that it is buying Globalstar, a global communications company which operates networks of low-Earth orbiting satellites to provide internet connectivity. The deal, which is reported to have been struck for $10.8 billion, is part of Amazon’s bid to take on Elon Musk’s SpaceX in the strategically-vital space of satellite-internet service.

SpaceX is the undisputed leader in this space. Musk has been launching his Starlink satellites that beam high-speed internet to nearly every corner of the planet on his SpaceX rockets for several years now. He’s been doing this nearly every week and there are thousands of these satellites in low-Earth orbit today.

Amazon may have been a late starter but it is now slowly catching up. Even before it acquired Globalstar, it showed its capability last year when it launched 27 such satellites successfully as part of an effort known as Project Kuiper, now renamed Leo. And along with its latest acquisition in this space, Amazon announced that it plans to use its satellites to offer voice, data and messaging services as early as 2028, and that it had also struck a partnership with Apple for Amazon’s satellites to connect to iPhones and Apple Watches.

The success of these timelines depends on the firm being able to launch thousands of satellites soon. The firm claims it wants to send over 3,200 in the next few years. SpaceX is believed to already have more than 7,000 satellites in space, and Musk has in the past claimed he wants to increase this to around 42,000.

It might be tempting to look at this growing competition as a battle between two of the world’s richest men. But there are others lining up too. There are a few private firms in this space, and some countries like China are also now looking to establish their presence in this space.

Satellite internet isn’t a new idea. It has been in use to provide connectivity in remote areas or to things like aeroplanes and ships. But because the satellites that provide such connectivity were large and expensive, it meant that this was never going to be a viable alternative. What firms like SpaceX and Amazon are doing is flipping this model. They are placing tiny inexpensive satellites in low-orbit Earth, and claiming that it will be able to offer high-speed internet to nearly every corner of the planet.

Both Amazon and SpaceX have their advantages and disadvantages. SpaceX for instance can rely on its own rockets to launch the satellites, while Amazon has to rely on others. Some believe that because Amazon at its core remains an e-commerce business, it will be better suited to use its satellite internet service to connect the unconnected. Amazon already offers free parcel delivery and access to movies and shows through its Prime subscription. Perhaps one day, it can extend this bundle to include its satellite internet service too? It has also already revealed its plans to integrate this service with Amazon Web Services, its cloud-computing arm.

Starlink has already shown how possible it is for internet to be beamed through satellites from space. The entry of others like Amazon will only expand this service to all sooner.