Amazon.com Inc. AMZN has secured a significant partnership with Australia’s NBN Co to deliver satellite broadband to over 300,000 rural customers starting mid-2026, intensifying competition with Elon Musk‘s established Starlink network.
Project Kuiper Targets Underserved Markets
The partnership represents Amazon’s first major international consumer agreement for Project Kuiper, its low Earth orbit satellite constellation designed to compete in the projected $40 billion global satellite communications market by 2030.
“We’ve designed Project Kuiper to be the most advanced satellite system ever built,” said Rajeev Badyal, Vice President of Technology at Amazon’s Project Kuiper, according to company statements.
Amazon must deploy over 1,600 satellites by July 2026 under Federal Communications Commission requirements, facing an accelerated timeline after completing just 78 satellite launches across three missions to date.
Musk’s Starlink Maintains Early Advantage
Tesla Inc. TSLA CEO Musk’s Starlink currently operates more than 7,000 satellites and serves 6 million subscribers globally, establishing a commanding early lead in the satellite internet race.
Bank of America Securities analyst Justin Post projects Amazon could generate $7.1 billion in revenue by 2032 if it captures just 30% consumer market share, maintaining a Buy rating with a $248 price target.
Post estimates Amazon will spend $23 billion building its complete constellation, with quarterly expenses ramping from $600 million in the second quarter of 2025 to $1.1 billion by the fourth quarter of 2025.
Political Tensions Cloud Competition
The satellite rivalry carries geopolitical implications following the Trump administration’s reports of considering Amazon’s Project Kuiper for the $175 billion Golden Dome missile defense system, potentially reducing reliance on SpaceX amid deteriorating President Donald Trump-Musk relations.
Musk previously feuded with Australian Prime Minister Anthony Albanese in 2024 over content removal requirements on X platform, with Musk questioning whether Australia’s leader believed he “should have jurisdiction over all of Earth.”
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