Amazon's new satellite network for mobile phones could turn up the heat on SpaceX
News Source
β’Mon, 27 Jul 2026 18:08:29 +0000
π° What Happened
Amazon has asked the US government for permission to launch 5,105 new satellites. These satellites would provide mobile phone service directly to people's phones. Amazon already bought Globalstar, which provides emergency service to Apple iPhones. The new network would be added to Amazon's existing satellite internet project called Leo. Amazon plans to start launching these satellites in 2028. This puts Amazon in direct competition with SpaceX, which already dominates the satellite internet and satellite-to-phone market.
π The Backstory
SpaceX, led by Elon Musk, has been the leader in satellite internet with its Starlink network. It is now building a satellite-to-mobile service too. SpaceX plans to spend $20 billion buying spectrum from EchoStar for this. But it is not clear how many people actually want satellite phone service. T-Mobile's CEO said satellite usage was only 0.0002% of their network in May. Amazon faces another problem: it does not have its own rockets. Blue Origin's New Glenn rocket is delayed after a launch pad explosion in May.
π― Why It Matters
Satellite phone service could bring cell coverage to remote areas without cell towers. More competition between Amazon and SpaceX could mean lower prices for users.
Amazon has asked the US government for permission to launch 5,105 new satellites. These satellites would provide mobile phone service directly to people's phones. Amazon already bought Globalstar, which provides emergency service to Apple iPhones. The new network would be added to Amazon's existing satellite internet project called Leo. Amazon plans to start launching these satellites in 2028. This puts Amazon in direct competition with SpaceX, which already dominates the satellite internet and satellite-to-phone market.
SpaceX, led by Elon Musk, has been the leader in satellite internet with its Starlink network. It is now building a satellite-to-mobile service too. SpaceX plans to spend $20 billion buying spectrum from EchoStar for this. But it is not clear how many people actually want satellite phone service. T-Mobile's CEO said satellite usage was only 0.0002% of their network in May. Amazon faces another problem: it does not have its own rockets. Blue Origin's New Glenn rocket is delayed after a launch pad explosion in May.
Satellite phone service could bring cell coverage to remote areas without cell towers. More competition between Amazon and SpaceX could mean lower prices for users.