Amazon (AMZN) is quickly planning to launch a brand new service for shoppers who’re sick of their present web supplier, and an government engaged on the upcoming venture has lastly revealed when and the place the retail big plans to launch it.
Just a few months in the past, Amazon started launching low-Earth-orbit satellites into house as a part of a brand new initiative known as Challenge Kuiper.
In line with Amazon’s web site, the venture’s mission is to “help close the digital divide” by offering “fast, affordable” web to “consumers, businesses, government agencies, and other organizations operating in places without reliable connectivity.”
By means of Challenge Kuiper, Amazon plans to introduce three totally different tiers of satellite tv for pc web service: one which delivers speeds of as much as 100 megabits per second, one other that accommodates a typical antenna with downlink speeds of as much as 400 megabits per second, and a mannequin that gives speeds of as much as 1 gigabit per second.
Amazon has but to announce any month-to-month or upfront prices for every web plan.
A rocket carrying demonstration satellites for Amazon’s Challenge Kuiper broadband web constellation at Cape Canaveral House Power Station.
Picture supply: Anadolu/Getty Photographs
Amazon reveals timeline for launch of recent web service
On Sept. 15, whereas talking at a World House Enterprise Week occasion in Paris, Amazon Kuiper Authorities Companies President Ricky Freeman stated the corporate plans to launch over 200 low-Earth-orbit satellites by the tip of the 12 months, based on a current report from Bloomberg.
Amazon is already set to launch 27 satellites on Sept. 25, including to the 102 already in orbit.
He stated the brand new satellite tv for pc web service can be out there in 5 international locations: the U.S., the UK, Canada, France, and Germany, by March 2026. Amazon plans to start service by the tip of the 12 months in places which have but to be specified.
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“We are very pleased with where we are right now,” stated Freeman through the occasion.
He stated Amazon will later deploy satellites that cowl extra southern latitudes by 2027, and plans to supply “full global coverage, including the poles in approximately 88 to 100 countries” by 2028.
The transfer from Amazon rivals Starlink’s SpaceX’s satellite tv for pc web service, which has attracted over 6 million prospects globally after launching in 2019. The service is offered in over 125 international locations throughout all seven continents and has excessive demand in rural and concrete areas.
Quilty House analysts predict Starlink will generate $11.8 billion in income by the tip of the 12 months, whereas BofA analysts count on Amazon to yield $7.1 billion in income from its satellite tv for pc web service by 2032 if it good points a 30% share of the buyer market.
“We see a compelling opportunity, and potentially strong long-term margins given high startup costs,” stated BofA analyst Justin Submit about Amazon’s Challenge Kuiper in a July analyst observe obtained by PYMNTS.
Amazon might profit from an alarming client pattern
The upcoming launch of Amazon’s satellite tv for pc web service comes as many shoppers are ditching conventional web providers, typically offered by cable corporations, to keep away from paying increased costs.
In line with a State of Shopper Belief Survey 2025 by Critiques.org, People confronted a mean web worth improve of $20.78 per 30 days in 2024.
Additionally, 43% of People stated within the survey that their web payments elevated probably the most final 12 months in comparison with different house providers. This has pushed 75% of People to both cancel, downgrade, or contemplate switching web suppliers.
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Many shoppers are switching to satellite tv for pc web providers and stuck wi-fi web, which is cheaper than conventional web providers. Cellphone carriers equivalent to Verizon, AT&T, and T-Cellular all supply mounted wi-fi web, also referred to as 5G house web.
“Although 5G home internet technically isn’t faster than cable or fiber internet, it offers a lot of value,” stated Peter Holslin, managing editor at Critiques.org, within the survey. “5G web packages are usually offered at mounted charges, with no additional charges for set up or tools, and also you typically get different perks too like limitless information and bundle reductions whenever you pair it with a cellphone plan from the identical supplier. Setup is less complicated since you needn’t run any cable or wiring by way of your own home, and often prospects can get strong speeds to cowl frequent wants like streaming TV, on-line gaming, and making video calls.”
Amid this growing trend, cable companies are rapidly losing internet customers. For example, during the second quarter of 2025, Comcast lost roughly 226,000 internet customers, almost 88% higher than the number of internet customers it lost during the same quarter last year.
Spectrum also lost about 117,000 internet customers during the quarter, roughly 6% more than it lost during the same time period in 2024.
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