Amazon's $11.6 billion acquisition of Globalstar bolsters its space ambitions, but analysts caution it will not resolve the critical shortage of rocket launches. This bottleneck impedes Amazon's ability to build a satellite internet network to rival SpaceX.
The scarcity of rocket launches, coupled with manufacturing issues and launch delays, has resulted in Amazon deploying only 243 of its planned 3,236 satellites for low-Earth orbit internet services. The company has even resorted to using rival SpaceX's Falcon 9 rockets for launches, underscoring its reliance on third-party providers and the limitations this imposes on network expansion.
SpaceX, in contrast, has rapidly deployed its Starlink network, utilizing its own rockets and establishing a dominant scale with 10,000 satellites.
Analysts note that "Unless Amazon can solve deployment speed and launch access, the gap remains structural, not just numerical," highlighting that the Globalstar deal still leaves Amazon behind in deployment scale and cadence.
Amazon recently requested a two-year extension from the FCC to deploy approximately 1,600 satellites, a request yet to be ruled upon. The company's pace has drawn scrutiny from regulators, including FCC Chair Brendan Carr, who expressed openness to the Globalstar acquisition.
Amazon's potential long-term solution may come from Blue Origin, founded by Jeff Bezos. Blue Origin is developing the New Glenn rocket, designed for heavy payloads. However, New Glenn's debut flight was in January 2025 and it is still in testing, not yet achieving the launch cadence required for Amazon's ambitious satellite deployment, leaving Amazon dependent on external launch providers.