Amazon Joins Satellite Communication Race, Plans 5,000 Satellites Targeting Mobile Device Users

Amazon (AMZN-US) plans to launch a constellation of more than 5,000 satellites to provide mobile communication services to consumers worldwide, expanding its reach to challenge Elon Musk’s Starlink, owned by SpaceX.

On Monday (27th), Amazon announced it has submitted an application to the U.S. Federal Communications Commission (FCC) seeking approval to deploy the satellite network by 2028. Amazon stated the system will offer voice calls, SMS, data services, and emergency communication capabilities.

This latest move intensifies competition in the 'direct-to-device' mobile communications market. Amazon said it will leverage radio spectrum resources acquired through its recent $11.6 billion purchase of Globalstar.

In its application, Amazon stated: 'We look forward to realizing the vision of direct-to-device connectivity, enabling communication services for millions of people living, traveling, and working beyond the reach of traditional networks today.'

The filing marks Amazon’s first major entry into satellite-based mobile communications. This market has so far been dominated by Starlink, SpaceX’s satellite internet service, which now covers over 150 countries with high-speed internet connectivity.

Starlink has already partnered with U.S. telecom T-Mobile US and UK-based Virgin Media O2 to provide mobile connectivity in areas beyond traditional cellular coverage.

Last month, reports suggested Starlink may go further by launching a direct-to-consumer mobile phone service in the U.S., a move that could disrupt the multi-billion-dollar U.S. mobile communications market.