Amazon looking to launch satellites for mobile service

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KCBS Bloomberg Tech and Business Report 4 min 1 speaker 5 chapters transcribed 4 days ago
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What is Amazon’s plan for launching thousands of satellites for mobile service?

Holly Quan 0:00
Time for our daily tech and business report. Amazon asking permission from the FCC to launch satellites, thousands of them, for mobile cell service. For more, we turn to the KCBS Ring Central newsline and speak with Bloomberg space editor and reporter Bruce Einhorn. Bruce, thanks for the time.
Bruce Einhorn 0:18
My pleasure.
Holly Quan 0:18
So we're talking what five thousand satellites? Is this like poking at SpaceX?
Bruce Einhorn 0:26
Um uh uh yes, Amazon is applying for permission to launch five thousand satellites. And yes, you're right, it is uh um poking at SpaceX just in that um uh SpaceX has a service that they've already launched uh that uh uh provides service

How does Amazon’s Leo network compare to SpaceX’s Starlink?

Bruce Einhorn 0:46
uh to mobile phones, other mobile devices, um, via satellites without having to have any sort of special equipment, without having to have a a receiver, any dish. Um so this is something that Amazon wants to start doing as well.
Holly Quan 1:00
Sorry, but five thousand sounds a lot to me. Uh what's the likelihood that they're gonna get the green light?
Bruce Einhorn 1:06
Uh well it's a good it's a good point you're making because Amazon separate from this network does have another network that they call Amazon Leo, which is supposed to be competing with SpaceX's Starlink in providing internet service. Um and Amazon Leo is supposed to have Something like twenty two hundred satellites. um as part of its network. Um they're nowhere close to that.

Why is Amazon acquiring Globalstar and how will it boost the satellite fleet?

Bruce Einhorn 1:32
They s uh uh in the I last I checked they it was a few hundred. Um Amazon has had difficulty getting its satellites launched in part because unlike SpaceX, they don't have rockets of their own. So they depend on rockets from other companies and some of those other companies have had some problems with their rockets and so Amazon is behind even in that initial network. So um being able to get the rocket capacity to get this new network of the directed device satellites up in operating in orbit, it's gonna be a it is gonna be a challenge.
Holly Quan 2:07
Now, on the surface it sounds like a good idea. I mean I think Amazon Leo agreeing has an agreement with Apple to do satellite services for the iPhone and Apple watches. And on the surface that sounds like a good idea.
Bruce Einhorn 2:19
Uh yeah, and what you're um what you're getting at also is that um uh at the same time that that Amazon announced that deal with Apple, they announced a proposed acquisition of a satellite company called Global Star um for about uh um uh eleven point six billion dollars. Uh and so that uh acquisition

What launch‑vehicle challenges does Amazon face without its own rockets?

Bruce Einhorn 2:39
will give Amazon uh a bit of a head start in building up this this bigger um network of five thousand plus satellites that they want to be able to provide that kind of service, the direct to device service.
Holly Quan 2:53
Based w what do you think? I mean, based on what you know, w what is the likelihood that Amazon can go head to head with SpaceX or is it just one of those things where they have to look like they're going after them?
Bruce Einhorn 3:06
Well, I think, you know, I um don't um um don't discount Amazon's ability to compete in in businesses, right? They've shown that they're g they're quite good at a lot of things. Um uh as I mentioned earlier, I think the big challenge that they do face is that it is hard for them to get their satellites in orbit, uh um not having their own rocket company in-house the way that SpaceX does. Uh another company uh backed by Jeff Bezos, uh Blue Origin, uh has a rocket called the New Glen that Amazon uh is hoping will uh provide a ride to space for a lot of its satellites. Uh that rocket is uh new.

Can Amazon realistically compete with SpaceX in the satellite‑internet market?

Bruce Einhorn 3:45
It's only flown a few times. It's currently on hiatus. Um it's it's um uh it had some problems and so uh uh they're hoping to get uh Blue Origin is hoping to get it up and running. again by the end of the year. Um but that is setting back companies, not just Amazon but others that are depending on that as a way to get to space rather than just having to rely on SpaceX's Falcon nine, which is the by far the most popular way of getting satellites to orbit right now.
Holly Quan 4:16
Different kind of space race. Bruce, thanks very much for the time and for the reporting. That is Bloomberg's space and space editor and reporter Bruce Einhorn.

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