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The Race for Global Connectivity

April 1, 2023 | Expert Insights

The race for global internet connectivity has intensified in recent years as companies look to bridge the digital divide and connect people in remote locations worldwide.

Of course, the leader has been Elon Musk's much-maligned SpaceX and Starlink, which was projected by its promoter as the saviour of Ukraine to beat back the "Russian cyber offensive." 

One of the key emerging players in this race for space-bound internet is Amazon, which is gearing up to take on market leader SpaceX.

Background

With its ‘Project Kuiper’ initiative, Amazon plans to launch a constellation of over 3,000 satellites into orbit, providing high-speed broadband internet to underserved areas of the world. This would make it a direct competitor to SpaceX's Starlink, which has already launched over 1,500 satellites into orbit.

The Project Kuiper official website describes its objectives as an “initiative to provide fast, affordable broadband to communities globally that are currently unserved or underserved by traditional internet and communications options. To achieve this goal, Amazon will deploy thousands of satellites in low Earth orbit (LEO) linked to a global network of antennas, fibre, and internet connection points on the ground.” It is an ambitious project that takes its name from the Kuiper Belt, a region of the solar system that exists beyond the eight major planets. The Kuiper Belt is named after Dutch astronomer Gerard Kuiper, the father of modern planetary science.

The project began in 2018 and was granted a licence by the U.S. Federal Communications Commission (FCC) to deploy LOE satellites in 2020. Project Kuiper has three main parts: ground infrastructure, satellites, and customer terminals. Amazon's ground infrastructure includes gateway antennas that securely send and receive customer data to and from satellites and telemetry, tracking, and control (TT&C) antennas that keep the satellites operating properly. Global networking connects those gateway antennas to the internet, public cloud, or private networks. Per its FCC license, Project Kuiper must deploy and operate 50 per cent of its satellite constellation by July 2026.

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Analysis

Amazon's push into satellite internet is a significant development in the race for global connectivity. The company's substantial resources and expertise in the space industry give it a strong advantage in this market. Amazon's subsidiary, Blue Origin, is developing reusable rockets for space tourism and satellite launches, which will be crucial in getting its satellites into orbit. In addition, Amazon's vast data centre infrastructure and cloud computing services will allow it to efficiently process and distribute the data from its satellites.

However, Amazon will face significant challenges catching up with SpaceX's Starlink. One of the key challenges is satellite production. According to reports, Amazon plans to build as many as four satellites daily, equating to around 1,460 satellites annually. This is a significant increase compared to its previous monthly production rate of just a few satellites. Amazon must invest heavily in satellite manufacturing facilities and infrastructure to achieve this goal.

Another challenge is launching satellites into orbit. Amazon will need to secure launch vehicles to get its satellites into space, which can be a costly and time-consuming. However, the company's subsidiary, Blue Origin, is developing reusable rockets that could potentially reduce the cost of launches. In addition, Amazon has recently signed an agreement with United Launch Alliance, a joint venture between Boeing and Lockheed Martin, to launch its satellites.

The satellite internet is a key technology for bridging the digital divide and connecting people in remote areas. In many parts of the world, traditional internet infrastructure is simply unavailable or prohibitively expensive. Satellite internet offers a way to provide high-speed broadband to even the world's most remote regions. This could significantly impact education, healthcare, and economic development in these areas.

However, there are some concerns about the potential environmental impact of satellite internet. The sheer number of satellites being launched by companies like Amazon and SpaceX could contribute to an increase in space debris, which poses a risk to other satellites and space missions. In addition, the bright lights of these satellites could interfere with ground-based telescopes, which could have a negative impact on astronomy.

Assessment

  • With its substantial resources and expertise in the space industry, Amazon is well-positioned to compete with SpaceX and other players in this market. However, the company will need to overcome significant challenges in satellite production and launch, and the potential environmental impacts of satellite internet must also be carefully considered. India, with its burgeoning space launch capacity, could play a part.
  • The benefits of satellite internet are clear, particularly for underserved areas where traditional internet infrastructure is not available or is prohibitively expensive. The ability to provide high-speed broadband to even the world's most remote regions could have a transformative impact on education, healthcare, and economic development in these areas. However, it remains prohibitively exorbitant so far, and Elon Musk has demanded the U.S. government compensate him with $ 400 million for one year's deployment in Ukraine!
  • While the competition is bound to slash prices, the worrying part is the lax regulations governing space crowding and the danger from collisions with discarded space platforms. The commercialisation of space is only going to make matters worse.