Amazon is stepping up its push into the low-Earth-orbit satellite communications market led by SpaceX's Starlink. It plans to expand its business scope beyond conventional satellite internet to a "D2D (Direct-to-Device)" service that directly links general smartphones and satellites.
According to the Financial Times (FT) on the 28th, Amazon submitted to the U.S. Federal Communications Commission (FCC) a plan to deploy up to 5,105 low-Earth-orbit satellites starting in 2028 and requested approval. The goal is to provide satellite-based communications services to residents, travelers, and workers in areas beyond the reach of terrestrial mobile networks.
The new satellite network is designed so that compatible mobile phones can exchange signals directly with satellites without a separate satellite antenna. It plans to support not only voice calls and text messages, but also data transmission and emergency communications in disaster and distress situations. Amazon plans to work with mobile carriers in each country to supplement coverage gaps in existing mobile networks with satellites.
Amazon plans to secure the frequencies and related infrastructure needed for the D2D business by acquiring satellite operator Globalstar. The acquisition process is set to be completed next year, with full-scale network deployment expected to begin in 2028.
Satellite launches for the low-Earth-orbit satellite communications project "Leo" began in earnest in April. The number of satellites placed in orbit to date is 396, and initial service is slated to begin by the end of this year. The gap with Starlink, which operates more than 10,000 satellites, remains large, but if the new plan is approved, it could lay the groundwork to catch up.
The large investment burden is a concern. Ben Wood, an analyst at New Street Research, estimated that $13 billion to $20 billion will be invested in building Amazon's satellite constellation. The amount is based on the assumption that Amazon adopts a satellite design similar to competitors and that Blue Origin, the space company owned by Jeff Bezos, will handle a significant portion of the launches.