One of the big questions about Amazon’s new home internet service has been what it would cost. Now, according to a new report, the kits to get started with the service can be built for over $200, which is cheaper than what Starlink charges.
According to Bloomberg, a standard satellite dish from Amazon will cost under $400 to manufacture. This could help Amazon undercut the $599.99 cost that SpaceX charges for its standard Starlink kit. This standard satellite dish from Amazon promises speeds of up to 400 Mbps down.
There is an even smaller satellite dish that Amazon is promising will offer speeds up to 100 Mbps, but the exact manufacturing costs of that model are unknown.
For some time now, Amazon has said they wanted to offer a cheaper satellite internet option. Having their kits cost under $400 to manufacture would allow them to sell the kits significantly cheaper than the $599.99 Starlink charges. Often, companies sell starter kits like this at or near cost in order to get as many customers as possible to sign up for the monthly fees. Sadly, we still do not know the cost Amazon plans to charge for monthly service.
Amazon is promoting some impressive speeds for satellite-based internet as an important step in offering fast internet to its customers. According to Amazon, the following three internet speed options will be available to Amazon Internet customers:
Standard This standard version will come with an 11″ square antenna that will offer speeds up to 400 Mbps down. This will be perfect for most households.
Pro Version 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 Version If speed is not that important, and you want something you can easily travel with, you may want Amazon’s ultra-portable version that is just 7″ square and offers speeds up to 100 Mbps.
These speeds are considerably faster than older satellite internet services and with the pro version, are significantly faster than SpaceX’s Starlink average speeds right now. The question now is what the speeds will be like once the service is in public use.
Amazon hopes to start limited testing in late 2024. From there Amazon plans to start to slowly roll out the service in 2025 slowly. Similar to the Starlink rollout, look for the service to be offered in limited areas at first as it slowly moves to offer service in more areas.