Amazon Inc. (NASDAQ:AMZN) is preparing to dispatch hundreds of small satellites into orbit, setting the stage for a face-off with Elon Musk's SpaceX in the U.K.'s airspace.
What Happened: Amazon is planning to launch over 3,000 low-Earth-orbit satellites to provide internet connectivity to remote areas, The Telegraph reported on Monday. The first rocket mission is slated for the end of the year. This move places Amazon's executive chairman, Jeff Bezos, in direct competition with Musk, whose company SpaceX has already launched a 6,000-satellite constellation.
SpaceX, valued at a reported $200 billion, already has 42,000 customers in the U.K. and is seeking to expand its service. Meanwhile, Amazon is awaiting approval from the U.K.'s telecom regulator, Ofcom, to bring its service to the U.K.
Despite SpaceX's significant head start, industry insiders believe Amazon has the potential to challenge Starlink, especially with its cash reserve expected to reach $100 billion this year. Amazon's venture is less focused on profit and more on expanding its global broadband network and Prime customer base.
The rivalry between Bezos and Musk could soon intensify in the U.K.'s broadband and mobile market, with satellite technology seen as a potential alternative to costly and disruptive roadworks for fibre installation in remote areas.
Why It Matters: This development comes as a continuation of the escalating space race between Bezos and Musk. Earlier this month, Amazon's Project Kuiper, a satellite internet constellation initiative, secured eight licenses and purchased land in New Zealand. This move coincided with Musk's SpaceX satellite service, Starlink, expanding its customer base in New Zealand from 12,000 to 37,000 in 2023. As the billionaires vie for dominance in the UK's skies, the competition is expected to reshape the country's broadband and mobile market.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari