Amazon Launches Kuiper Satellites as Starlink Slashes Hardware Costs to Zero

Key Takeaways

• Amazon has launched the first of its Kuiper satellites.
• Project Kuiper is intended to offer an alternative to Starlink.
• As competition in satellite internet services heats up, Starlink is offering free terminals.

The launch of Amazon’s Project Kuiper satellites could end Starlink’s near-total monopoly in the market for consumer satellite broadband services.

But while the SpaceX subsidiary still has a significant lead in the sector, it is moving to onboard as many customers as possible by enticing them with free satellite antennas.

Amazon Kuiper Ramps up Satellite Rivalry

Project Kuiper was established in 2019 to deploy a constellation of satellites into low Earth orbit.

The venture marks a major attempt by Amazon to usurp Starlink’s dominance in the space, where it currently faces little competition.

Although Eutelsat’s OneWeb offers a similar service, it remains significantly outgunned by Starlink’s array of more than 7,000 satellites in orbit.

Deployment of Amazon’s 3236 satellites is planned in five phases, and internet service will begin once the first 578 have been launched, potentially by the end of this year.

Although Project Kuiper has faced multiple delays, the latest launch represents a milestone for Amazon CEO Jeff Bezos’ efforts to take on SpaceX. Bezos is also the founder and largest financial backer of the SpaceX rocket rival, Blue Origin.

Starlink Fails To Meet Growth Targets

According to industry research , Starlink has nearly 5.4 million subscribers globally, with almost half of these located in North America.

While Starlink has extended its global reach in recent times and remains way ahead of the competition, its subscriber count is significantly below what the company once projected.

In 2015, SpaceX delivered a presentation to investors that predicted Starlink would have 20 million subscribers within seven years.

Starlink’s slower-than-expected growth reflects a broader challenge for the nascent satellite internet industry.

The majority of the world’s broadband customers live in areas that are already well-served by existing digital infrastructure. But at $120 per month plus hardware costs for a residential subscription, Starlink is considerably more expensive than equivalent plans from terrestrial providers.

Starlink Offers Free Terminals

In a move that could dramatically decrease the cost of Starlink for many, the company has started offering new customers a free terminal. Previously, Starlink terminals cost $349 for U.S. customers.

The latest offer is currently available on a 12-month residential plan in many parts of the U.S., Canada, the U.K., Australia and New Zealand. It is also available nationwide in 12 European countries.