Tech Giants Compete for Global Satellite Market: Amazon Approved to Deploy 4,500 Satellites to Counter Starlink

The global satellite market has gained another major player.

Recently, the U.S. Federal Communications Commission (FCC) approved a satellite deployment application submitted by Amazon. According to the application, Amazon will expand its existing satellite fleet by adding 4,500 satellites, bringing its low Earth orbit satellite total to approximately 7,700.

Public information shows that the 4,500 additional satellites all belong to its second-generation “Leo” satellite internet constellation project, which was announced in 2019. The satellites will operate at an altitude of 644 kilometers. Amazon has publicly stated that it plans to officially provide satellite internet services for Leo this year. Previously, Amazon had already launched over 150 satellites into space.

Industry experts widely believe that Amazon’s move will not only provide more sufficient spectrum and orbital resources for its satellite broadband business but also aim to compete more directly and at scale with SpaceX’s Starlink in the short term.

What is Amazon’s intention?

According to FCC requirements, Amazon must complete 50% of the launch of the 4,500 additional satellites by February 2032 and complete all deployments by February 2035. Its first-generation constellation of 1,600 satellites was originally scheduled for deployment by July 2026 but has now been延期 to July 2028.

Based on disclosed technical details, FCC’s authorization not only involves an increase in satellite numbers but also includes licenses for different frequency bands (Ka/Ku/V bands) and polar orbit deployments. This means Amazon’s new generation satellites will have greater flexibility in coverage—including polar regions—and spectrum utilization, which will help improve global seamless coverage and capacity management. According to current reports from U.S. media, about 3,200 of these satellites are of the more advanced Gen-2 design, and polar orbit deployment is also considered an important part of expanding Arctic, shipping, and polar energy operations.

Communication analyst Zhou Guijun believes that while Amazon’s move appears to be a satellite quantity expansion, the more critical goal is to enhance its competitiveness in commercial satellite services, cost structure, and ecosystem integration.

He sees that, from a scale economy perspective, the three main cost centers are satellite manufacturing, launch, and ground terminals. Amazon has long claimed to have invested over $1 billion in the Leo project, with hundreds of launch reservations. It also aims to reduce terminal and user acquisition costs through its cloud (AWS) and retail channels. However, challenges such as launch resource bottlenecks, satellite quality stability, satellite lifespan, and spectrum coordination remain key hurdles for Amazon to turn “deployment scale” into “commercial revenue.”

Meanwhile, since Starlink still holds a first-mover advantage in both quantity and market share—especially after multiple recent launches pushing its in-orbit satellites into the thousands, and through optical links, rapid iteration, and large-scale user validation—Amazon faces the challenge of competing with Starlink and other operators in spectrum, ground networks, and international market access, even with more licenses.

Market research predicts that the satellite internet and Leo satellite markets will grow rapidly in the coming years. Against this backdrop, Zhou Guijun believes Amazon’s entry is likely driven by the growth potential of industry markets, but high investment, long payback periods, and regulatory uncertainties make this a marathon of capital and technology endurance.

Global Competition Intensifies

With Amazon’s entry, the competitive landscape of the global low Earth orbit satellite market has become even more intense.

Currently, Starlink remains the largest low Earth orbit satellite constellation worldwide, with thousands of satellites launched and over half of the active satellites globally. Its coverage spans more than 100 countries and regions, with a continuously growing user base and annual revenue in the billions of dollars. Meanwhile, Starlink is advancing its second-generation constellation to further enhance bandwidth and network capacity.

In Europe, OneWeb, often called the European version of Starlink, is accelerating its efforts. Its European satellite operator recently announced the completion of its first-generation low Earth orbit constellation of about 600 satellites, forming a global coverage network. Its parent company, Eutelsat, disclosed in its latest financial report that low Earth orbit business revenue is growing rapidly, with backlog orders reaching billions of euros, mainly targeting government, aviation, and enterprise private networks. The company is also pushing forward with subsequent expansion plans. Additionally, countries like the UK, Russia, and India have announced their own low Earth orbit satellite constellation plans.

In the fierce global competition, China’s low Earth orbit satellite deployment is also accelerating. Supported by policies, technological breakthroughs, and industry chain advantages, China’s commercial space sector has been included as a key strategic emerging industry. With ongoing policy improvements, several low Earth orbit constellations have completed large-scale frequency filings with the ITU and entered phased deployment cycles.

Among them, the “StarNet” project and the Shanghai-led “Qianfan Constellation” are two major satellite internet constellations now in small-batch launches and system verification phases. The former plans to deploy 13,000 satellites, while the latter aims to complete a network of 15,000 satellites by the end of 2030. Industry data shows that by the end of 2025, the GW constellation will have over 100 satellites in orbit, and the Qianfan constellation has completed multiple launches, with regional coverage expected by late 2026 and global commercial services starting in 2027.

Omdia telecom analyst Yang Guang believes that China’s large-scale deployment of low Earth orbit satellites is not only to supplement ground networks but also to prepare for the 6G era. “Future 6G will be an integrated space-ground network. Satellite networks will work together with 5G/6G terrestrial base stations. Early large-scale deployment is significant for China’s 6G industry development,” Yang said.

Therefore, against the backdrop of global satellite deployment competition, FCC’s approval of Amazon’s expansion undoubtedly intensifies the competition in the space market. Zhou Guijun believes that compared to China, the U.S. has a more commercially driven satellite constellation deployment. With Starlink’s success proving the viability of its business model, Amazon’s entry is more aimed at competing with Starlink.

However, despite differing focuses between China and the U.S., the race to deploy satellites is a clear sign of increasing “involution” in the global satellite internet competition. From SpaceX’s lead to Amazon’s pursuit, and the rising strength of China’s industry chain, the low Earth orbit satellite race is becoming more lively. Zhou Guijun suggests that for China, maintaining “accelerated development,” completing constellation deployment, and deepening terminal applications and global standards will be crucial to securing the future decade’s international competitiveness of China’s aerospace industry.

(Article source: China Business Journal)