Amazon Considers Bundling Satellite Internet With Prime to Challenge Starlink
Amazon.com, Inc. (NASDAQ:AMZN) is exploring options to bundle its upcoming Leo satellite broadband internet service with Prime subscriptions. The e-commerce and technology company aims to start offering satellite internet before the end of 2026, though specific pricing and launch packages remain unconfirmed. Possible combinations include pairing broadband access with Prime Video or eero Wi-Fi devices, featuring hardware like the Leo Ultra antenna that delivers download speeds up to one gigabit per second.
The initiative positions Amazon to leverage its massive consumer base against rival services like SpaceX's Starlink. Amazon has manufactured over 1,000 satellites, with 396 currently deployed in orbit, toward a planned constellation of roughly 3,200 spacecraft. To support this expansion, the firm can produce about 27 satellites per week and has secured more than 100 rocket launches. Commercial adoption is already taking shape, with Delta Air Lines planning to introduce Leo-powered Wi-Fi on flights in 2028.
Investors will be watching Amazon's execution ahead of a regulatory deployment deadline of July 30, 2029. Despite regulatory hurdles, Wall Street remains optimistic, maintaining a consensus Strong Buy rating with an average price target of $331 based on 41 Buy ratings and two Holds. Shares of Amazon recently traded down 1.11% at $259.50.
Key points
- Amazon is considering bundling its Leo satellite broadband service with Prime memberships before launching service in late 2026.
- The company has built over 1,000 satellites and deployed 396 in orbit, aiming for a total constellation of about 3,200 spacecraft.
- Delta Air Lines plans to rollout onboard Wi-Fi powered by Amazon Leo satellites in 2028.
- Amazon faces a final regulatory deadline of July 30, 2029, to complete deployment of its satellite network.
- Wall Street maintains a Strong Buy consensus on Amazon with an average price target of $331.
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How we writeDisclaimerQuestions and answers
When will Amazon launch its satellite internet service?
Amazon plans to begin providing satellite internet service before the end of 2026, though specific package details and pricing have not been confirmed.
How many satellites has Amazon launched for its Leo network?
Amazon has deployed 396 satellites in orbit out of more than 1,000 produced, with a long-term goal of building a constellation of approximately 3,200 spacecraft.
Will Amazon satellite internet be included with Prime?
Amazon is exploring ways to pair its Leo satellite broadband service with Prime memberships, but has not confirmed if bundled packages will be available at launch.