Last year Amazon successfully tested its new Internet service from space that will bring Internet to homes and businesses starting next year. To reach that goal, Amazon received FCC approval earlier this year to start testing up to 1,000 prototype dishes all over the United States. This will let Amazon begin mass testing as it prepares to launch satellites this year.
Now, Amazon’s CEO Andy Jassy has given an update on the service in his letter to shareholders. “In October, we hit a major milestone in our journey to commercialize Project Kuiper when we launched two end-to-end prototype satellites into space, and successfully validated all key systems and sub-systems—rare in an initial launch like this. Kuiper is our low Earth orbit satellite initiative that aims to provide broadband connectivity to the 400-500 million households who don’t have it today (as well as governments and enterprises seeking better connectivity and performance in more remote areas), and is a very large revenue opportunity for Amazon. We’re on track to launch our first production satellites in 2024. We’ve still got a long way to go, but are encouraged by our progress.”
Amazon’s new internet service will reach both businesses and homes. Amazon says it will start testing this year with some busniess and hopes to have it rolling out in select areas next year to paying customers.
So what do we know about this new internet service? Here is what we know right now.
Amazon’s internet service will come in three speed options:.
Standard This standard version will have an 11″ square antenna that will offer speeds up to 400 Mbps down. This will be perfect for most households.
Pro If you need a lot of speed, Amazon has an 11″ by 30″ pro antenna that can offer speeds up to 1 Gbps. This will be perfect for companies or large households.
Portable If speed is not important and you want something you can easily travel with, look into Amazon’s ultra-portable version that is 7″ square and offers speeds up to 100 Mbps.
What can you expect from this service?
One of the big questions about Amazon’s new home Internet service has been the cost. Amazon CEO Andy Jassy says he expects the new Internet service to offer a low price that will help it reach the 400 to 500 million households still without Internet.
Jassy was interviewed by CNBC’s Jim Cramer last month. In that interview, Jassy said, “I think we can charge a low price and still make good margins where it’s a good business for us. I actually am very bullish about that business.”
According to Bloomberg, a standard satellite dish from Amazon will cost under $400 to manufacture. This will help Amazon undercut the $599.99 cost that SpaceX charges for its standard Starlink kit. The standard satellite dish from Amazon promises speeds of up to 400 Mbps down.
Unfortunately, we still don’t know the monthly cost, but Amazon seems dedicated to being cheaper than SpaceX’s Starlink.
Amazon hopes to start limited testing in late 2024 and to slowly roll out the service in 2025. Like the Starlink rollout, look for the service to be offered in limited areas at first as Amazon moves to expand service in more areas.
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