According to a recent press release from Verizon, Jeff Bezos’ answer to SpaceX’s Starlink, called Project Kuiper, will be used to significantly expand the carrier’s 5G and 4G LTE mobile network in rural areas.
However, with CEO SpaceX Elon Musk’s fortune continuing to rise to outrageous heights, Amazon and Jeff Bezos may find themselves in a battle once they reach low-Earth orbit (LEO).
Amazon’s Satellite Array Could Fix Verizon’s 5G Issue
Project Kuiper, named after the ring of icy rocks beyond Neptune that remained after the solar system’s formation, aims to launch a constellation of 3,236 satellites into low-Earth orbit. Once there, they will improve internet access in underserved areas worldwide. Additionally, the new Verizon-Amazon alliance would combine wireless technology from Verizon’s cellular network with Amazon’s Kuiper satellites in orbit to deliver more excellent broadband coverage and “new customer-focused connection options.”
Verizon gains a lot from the transaction, with high expectations for its 5G and 4G wireless networks to improve without the need for traditional infrastructure such as fiber cable networks, particularly in underserved communities. This could help Verizon finally deliver on its promise of 5G service, which it was the first to present to the world but has since lagged behind T-Mobile.
Verizon’s problem stemmed partly from its focus on mmWave, which, while extraordinarily fast, falls short in range. Meanwhile, T-Mobile acquired the mid-band spectrum, which provides a broader coverage area. Verizon’s other issue with mmWave is how expensive it is to scale because more nodes are required to make up for the shorter range. “Project Kuiper offers flexibility and unique capabilities for a LEO satellite system, and we’re excited about the prospect of adding a complementary connectivity layer to our existing partnership with Amazon,” said Verizon’s CEO and Chairman Hans Vestberg.
Vestberg added:
“We know the future will be built on our leading 5G network, designed for mobility, fixed wireless access, and real-time cloud computing. But, more importantly, we believe that the power of this technology must be accessible to all. Today’s announcement will help us explore ways to bridge that divide and accelerate the benefits and innovation of wireless connectivity, helping benefit our customers on both a global and local scale.”
Amazon Will Challenge Elon Musk’s SpaceX
The FCC has granted Amazon authorization to loft around 3,200 satellites into orbit. Still, until those satellites are physically launched into space, all of this remains hypothetical (with a provision that half must be in orbit by 2026). Amazon has stated that their broadband service would be accessible once 578 satellites have entered orbit; the remaining LEO constellation is expected to enter orbit by 2029. Additionally, Amazon has stated its intention to invest $10 billion in Project Kuiper and has already committed to nine LEO missions through a cornerstone contract with United Launch Alliance.
In a notable example of cross-pollination in Big Tech expansion, Amazon hired several members of Facebook’s now-defunct satellite team. Amazon will need all the help it can get to compete with SpaceX, especially after Elon Musk, the CEO of SpaceX, made $36 billion in one day after Tesla’s market cap surpassed $1 trillion, putting it in the company of Apple, Amazon, Alphabet, and Microsoft.
