Johnny KampisAmazon’s low Earth orbit satellite internet network, Amazon Leo, appears soon ready for launch, good timing for the company as the federal Broadband Equity, Access, and Deployment (BEAD) Program rolls out this year with its funding now including satellite broadband. The future satellite broadband provider continues to pick up more projects, as Oregon just awarded Leo more than 5,000 locations to service through BEAD.
Amazon Leo intends to start its low-Earth orbit (LEO) satellite internet service later this year, having now already launched nearly 400 satellites. Such broadband-capable satellites operate roughly 350 to 500 miles above the Earth’s surface. This altitude allows the satellites to deliver faster internet speeds while also making their launches more cost efficient.
Chris Weber, vice president of business and products for Amazon, tweeted that there is “still lots of work ahead – including raising all these new satellites to their assigned attitude – but we’ve completed enough launches for initial service this year, and future missions just add coverage and capacity.”
According to the tech website CNET, Amazon has a lot of catching up to do, with Elon Musk’s Starlink now operating about 10,000 satellites and providing internet coverage to more than 150 countries. It should be noted that Starlink has around a seven-year head start on its rival.
To catch up, Amazon announced plans to purchase Globalstar for $11.6 billion in April, a deal expected to be finalized in 2027. That company provides coverage to more than 120 countries through LEO broadband services.
“Of course, underestimate Jeff Bezos and his ability to compete and dominate at your peril,” CNET opined.
Overall, the satellite broadband business is expected to grow exponentially. Grand View Research estimates the market will increase from $13.3 billion this year to $35.7 billion by 2033.
Hans Geerdes, a strategist at Cable Television Laboratories, Inc., said satellite providers pose a real threat to fixed wireless providers. “I think every fixed broadband operator should be very worried,” Geerdes said in Light Reading. “It’s basically the second coming of fixed wireless, but at much better economics and with very, very aggressive competitive behavior.”
The Taxpayers Protection Alliance (TPA) in March filed comments to the Federal Communications Commission supporting a 24-month extension requested by Amazon to deploy 1,600 satellites as part of its constellation.
TPA noted the initial milestone would be missed largely due to circumstances beyond Amazon’s control. Although Amazon has purchased more launch capacity than any commercial operator in history, it is producing satellites faster than partners can launch them.
Amazon says that development timelines for next-generation launch vehicles have extended beyond initial projections, contributing to the Leo delays. The company added that even though it would miss the initial milestone, it remains on track to meet its final deployment milestone.
The most recent Leo launch on July 2 used the Atlas V rocket. CNET reported that future launches will occur with the heavier Vulcan rocket, which can carry more satellites and result in a faster deployment rate. Amazon has nearly 100 launches scheduled with a goal to have 7,727 satellites in LEO by 2035.
Amazon expects to receive a decent piece (at least $300 million) of the BEAD pie. That $43.5 billion taxpayer-funded federal program will now distribute about $19 billion for broadband deployment after the Trump administration tweaked the parameters and allowed fixed wireless and satellite companies to compete with fiber for projects.
As Amazon Leo prepares to receive about $300 million from BEAD, that number continues to grow. For example, the Oregon Broadband Office announced July 8 that Leo will get an additional $4.2 million (with $1.06 million in matching contributions) to service 5,192 locations that were not initially awarded during Round 1 funding.
Leo will largely connect rural and underserved communities for which it is too expensive to service via fiber infrastructure. Amazon’s forward movement will help connect unserved and underserved Americans to internet services at a fraction of the cost to taxpayers of other alternatives, such as failed government-owned broadband networks.
Johnny Kampis is director of telecom policy for the Taxpayers Protection Alliance
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