Amazon has launched into orbit the first 27 of a planned Kuiper constellation of 3,236 low-earth-orbit satellites. Some will liken the effort to Google Fiber, in the sense of a major app provider getting into the access business. And obviously it is a challenge to Elon Musk’s SpaceX.
But some might also wonder whether the initiative consumes capital that might be better spent elsewhere.
Amazon itself, and others who think the plan has value, might point to the upside. For starters,
Kuiper can help AWS offer low-latency services even in remote areas, as well as providing redundant or backup links for AWS data centers, especially in underserved regions.
Kuiper also can provide AWS clients space-based connectivity for internet of things apps, for example.
Kuiper enhances Amazon’s logistics network by providing coverage in rural or hard-to-reach areas, improving route optimization, tracking, and communications.
As other app hyperscalers have found, without internet access, potential users cannot be served. So Amazon could reach new customers in remote or underserved areas using Kuiper, supporting content services (Amazon Prime Video), e-commerce and other services and apps.
And once access is provided directly by Amazon, device and other bundles can be offered that might include Alexa, for example.
Also, to some extent, Kuiper means Amazon can vertically integrate its stack, providing internet access and applications, reducing its value chain dependence on partners.