Amazon’s Ironic Space Bet: Challenging Starlink’s Monopoly
Amazon has reached a critical milestone in its quest to challenge SpaceX’s Starlink satellite internet monopoly, deploying 396 satellites in low Earth orbit — enough to begin commercial service later this year. But as La Libre Belgique reports, the tech giant’s ambitious project carries an ironic twist: Amazon, itself a dominant player in multiple markets, is positioning as the challenger to a monopoly while relying on its would-be rival to get off the ground.
Context
Amazon first unveiled its satellite internet ambitions in 2019 under the name “Project Kuiper,” committing over $10 billion to build a constellation of thousands of low Earth orbit (LEO) satellites. Rebranded as “Amazon Leo” in 2025, the project aims to deliver high-speed internet to households, businesses, and governments worldwide — directly competing with SpaceX’s Starlink, which currently operates over 10,000 satellites and serves more than 9 million subscribers across 160 countries.
Key Developments
The latest launch of 29 satellites on the night of July 1-2 brought Amazon’s total to 396, crossing the minimum threshold for commercial service. According to 01net.com, Chris Weber, Vice President of Commercial and Products at Amazon Leo, confirmed on X (formerly Twitter) that “390+ satellites deployed” are “enough to support continuous service across initial latitudes,” adding that “future missions will only add coverage and capacity.”
However, the scale disparity is stark. Starlink’s constellation is more than 25 times larger, and early Leo service is expected to offer modest performance — comparable to Starlink’s 2020 “Better Than Nothing” beta, which delivered 50-150 Mbps download speeds with frequent connection interruptions.
In a strategic masterstroke, Amazon announced on April 14 its acquisition of satellite operator Globalstar for approximately $11.57 billion, as CNBC reported. The deal gives Amazon critical spectrum licenses, satellite infrastructure, and direct-to-device (D2D) capabilities. Amazon also signed an agreement with Apple to power satellite connectivity for iPhone and Apple Watch, including Emergency SOS via satellite.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places,” said Panos Panay, Amazon’s Senior Vice President of Devices & Services, in an official press release.
The Irony at the Heart of Amazon’s Ambition
The central contradiction highlighted by La Libre Belgique’s analysis is multi-layered. Amazon — which dominates e-commerce, cloud computing (AWS with roughly 32% market share), and digital advertising, and has faced antitrust scrutiny globally — is casting itself as the champion breaking up Starlink’s satellite internet monopoly.
More pointedly, Amazon has contracted with SpaceX — its direct competitor — to launch Leo satellites using Falcon 9 rockets. As Forbes noted, this creates an awkward dependency: Amazon’s success indirectly funds its biggest rival.
Amazon also faces regulatory pressure. The company must deploy approximately 1,600 satellites to meet FCC license conditions, having requested an extension in January 2026. FCC Chairman Brendan Carr, who has taken an “all gas, no brakes” approach to space expansion, told CNBC the agency will review the Globalstar acquisition with an open mind.
Analysis
Amazon’s strategy appears designed for the long game. In the short term, Leo will launch with limited coverage and modest speeds, likely facing comparisons to Starlink that may not flatter Amazon. But the Globalstar acquisition, expected to close in 2027, transforms the competitive landscape. It provides Amazon with globally authorized spectrum and immediate D2D capability to rival Starlink Mobile.
The Apple partnership provides an additional edge, giving Amazon an instant customer base and credibility in the satellite services market. Beginning in 2028, Amazon plans to deploy its own next-generation D2D satellite system, with in-flight Wi-Fi for Delta Air Lines also on the horizon.
Space analyst Chris Quilty told Forbes: “What we’re seeing is a setup for the battle of the Titans between SpaceX and Amazon.”
What’s Next
Amazon Leo’s commercial service is expected to launch before the end of 2026, though early adopters should temper expectations. The FCC’s review of the Globalstar acquisition will be a key regulatory hurdle. Meanwhile, Amazon must accelerate its launch cadence — using United Launch Alliance, Arianespace, Blue Origin, and even SpaceX — to close the gap with Starlink.
With the space economy projected to reach $1.8 trillion by 2035, according to the World Economic Forum, the stakes could hardly be higher. Whether Amazon can turn irony into competitive advantage remains one of the most compelling questions in the new space race.