Amazon's Answer To Elon Musk's Starlink Gets New Space Ride For 2023 Launch

Amazon.com, Inc AMZN said Wednesday that satellites for its Project Kuiper internet program will be launched by the new Vulcan rocket in early 2023.

What Happened: The Jeff Bezos-founded company said in a statement that its first two satellites — Kuipersat-1 and Kuipersat-2 — will be launched on the maiden flight of the United Launch Alliance’s (ULA) new Vulcan Centaur rocket early next year.

Amazon said ULA is scheduled to provide 47 launches for its satellite constellation, and using the Centaur would give it “practical experience” ahead of those launches.

The first mission will be launched from Cape Canaveral Space Force Station in Florida.

See Also: How To Buy Amazon (AMZN) Shares

Why It Matters: Amazon said it has secured up to 92 launches with ULA, Arianespace, and Blue Origin to deploy its constellation of 3,236 satellites.

On why Amazon chose to partner with ULA for the program, a company spokesperson said it plans to retain two launches with ABL Space Systems. "This diverse launch portfolio reduces risk associated with launch vehicle stand-downs, and gives us flexibility to use different rockets to address different needs for the program," the spokesperson said.

In April, the company had said its two prototype missions would be launched later in 2022 on ABL’s RS1 rocket. 

Using the Vulcan rocket gives the company a chance to "practice integration, processing, and mission management procedures" ahead of full-scale commercial launches, Amazon said.

Amazon told Benzinga there was no specific date yet for Kuiper service kicking in, but added that its FCC license requires it to put up 50% of its constellation (about 1600 satellites) by July 2026. "We're on track to hit those deadlines," the spokesperson said.

Tesla Inc TSLA CEO Elon Musk-led SpaceX already has Starlink broadband internet service with standard download speeds between 100 Mbps and 200 Mbps and a premium version where speeds range between 150-500 Mbps.

Price Action: On Wednesday, Amazon shares closed 0.6% higher at $112.90 in the regular session and gained 0.1% in extended trading, according to Benzinga Pro data.

Read Next: Elon Musk Thinks This Starlink Product Needs Re-Branding As It Clocks 100K Customers

Photo courtesy: Amazon

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