Amazon (AMZN) has requested permission from the Federal Communications Commission (FCC) to launch a network of 5,000 satellites that transmit directly to mobile devices. The initiative intensifies competition with SpaceX in the satellite connectivity business.
If the regulatory body approves the proposal, the new low Earth orbit network would offer global coverage and connect to smartphones and other mobile devices to enable messaging, data transmission, and emergency services in areas without cellular tower coverage.
The new network in low Earth orbit would provide global coverage
What services the Amazon satellite network would offer
According to a company statement, the direct-to-device transmission network would provide coverage in regions where traditional cellular phone signals do not reach.
The proposal adds to the company's plans to acquire Globalstar Inc (GSAT) for US$11.6 billion, a deal announced months ago that would grant Amazon rights to a spectrum capable of transmitting data to phones.
Amazon's partnerships with telecommunications companies
Amazon had already announced agreements with traditional telecommunications companies, including Vodafone Group PLC (VOD) and DirecTV, so that they can offer satellite services to their customers. The company stated that it plans to continue seeking such partnerships.
Amazon's alliances with telecommunications companies
How Starlink and AST SpaceMobile compete in this market
Starlink, from SpaceX, maintains a similar alliance with T-Mobile US Inc (TMUS). Meanwhile, AST SpaceMobile Inc (ASTS), based in Texas, is also developing a direct-to-device connection network and has agreements with Verizon Communications Inc (VZ) and AT&T Inc (T).
What Amazon Leo is and how its development is progressing
In addition to this new network, Amazon is currently developing Amazon Leo, an independent project to provide broadband internet coverage to receivers on Earth, similar to SpaceX's Starlink terminals.
What is Amazon Leo and how is its development progressing
The company expects to begin providing this service by the end of the year, although it has faced delays in launching its spacecraft. Amazon Leo also has an agreement with Apple Inc (AAPL) to provide satellite services to iPhones and the Apple Watch.
When the new Amazon network would start operating
According to reports, Amazon plans to begin deploying its direct-to-device connection network in 2028, pending the necessary regulatory approval.
