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Amazon has inked a deal with its industry rival, SpaceX, for a series of three satellite launches deploying Elon Musk's Falcon 9 rocket. This strategic move allows Amazon to access additional launch capacity for its ambitious Project Kuiper, aimed at establishing a constellation of satellites to deliver global internet coverage. The launches are scheduled to kick off in the middle of 2025.
The development underscores the intensifying competition in the satellite internet space, with Amazon and SpaceX vying for dominance. SpaceX's Starlink has already made significant strides, with around 5,000 operational satellites providing internet services from low-Earth orbit. On the other hand, Amazon's Project Kuiper, following a similar business model, recently launched its first two test satellites, part of a planned constellation of 3,236 satellites.
Amazon initially set an ambitious target to launch its first satellites by the fourth quarter of 2022. However, the project encountered setbacks, including testing failures and other issues with its launch partners, leading to delays.
This recent agreement with SpaceX marks a significant shift in Amazon's launch strategy for Project Kuiper. Previously, Amazon had agreements with three launch service providers—United Launch Alliance (ULA), Blue Origin (founded by Amazon's Jeff Bezos), and Arianespace—for a minimum of 68 launches, potentially reaching up to 83 launches. However, this plan was contingent on the use of newly developed rockets, which faced multiple delays.
Amazon's shift to SpaceX's Falcon 9 for three launches indicates a pragmatic approach to secure timely launches and maintain momentum for Project Kuiper. The Falcon 9, a proven and reliable workhorse, is a departure from the initially planned use of newer rockets from other providers.
This move comes against the backdrop of a lawsuit earlier this year, where a pension fund accused Bezos, Amazon's board members, and the company itself of neglecting the option to use SpaceX rockets for Kuiper launches. The lawsuit claimed that this decision resulted in more expensive rocket launches and project delays. Amazon responded, stating that the claims were without merit.
The satellite industry is witnessing dynamic shifts, with major players adjusting strategies and forming unexpected alliances. The SpaceX-Falcon 9 agreement with Amazon reflects the evolving landscape and the competitive forces shaping the future of satellite-based internet services. As Project Kuiper progresses, the industry will be closely watching how these developments impact the broader space race and the quest for global satellite internet coverage.
