One of the big questions about Amazon’s new home Internet service has been the cost. As we get closer to the launch of the service later this year, the question of cost is more important.
Amazon’s CEO 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. What does low price mean?
Amazon’s CEO Andy Jassy was interviewed by CNBC’s Jim Cramer, and 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.”
Recent leaks revealed that the kits to get started with Amazon’s new Internet service can be built for just over $200, which is less expensive than what Starlink charges.
According to Bloomberg, a standard satellite dish from Amazon promises speeds of up to 400 Mbps down and will cost under $400 to manufacture. This will help Amazon undercut the $599.99 cost that SpaceX charges for its standard Starlink kit.
It is also expected that the standard Internet service with speeds up to 400 Mbps down will cost under $100 a month.
For some time now, Amazon has said they want to offer a cheaper satellite Internet option. Having kits that cost under $400 to manufacture will allow them to sell the kits for significantly less money than the $599.99 that Starlink charges. Companies often sell starter kits at or near cost to get as many customers to sign up for the monthly fees. Sadly, we do not know the cost Amazon plans to charge for monthly service.
Amazon is promoting some impressive speeds for satellite-based Internet. The following three Internet speed options will be available to Amazon Internet customers:
Standard Standard will come with an 11″ square antenna that will offer speeds up to 400 Mbps down. Standard will be perfect for most households. It is expected that Amazon will sell Internet for this price under $100 a month.
Pro If you need a lot of speed, Amazon has an 11″ by 30″ Pro antenna that can offer speeds up to 1 Gbps. Pro will be perfect for companies or large households.
Portable If speed is not important and you want something you can easily travel with, look at Amazon’s ultra-portable version that is 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 Starlink’s average speeds. 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 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.
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