In his annual letter to shareholders, Amazon CEO Andy Jassy says the company’s Project Kuiper satellite venture will be “a very large revenue opportunity” in the future — but he’s hedging his bets as to exactly when that future will be.
Eventually, Project Kuiper aims to provide satellite broadband service to hundreds of millions of people around the world who are currently underserved when it comes to connectivity. Such a service would compete with SpaceX’s Starlink satellite network, which already has more than 2.6 million customers.
Amazon is investing more than $10 billion to get Kuiper off the ground. The plan calls for sending 3,232 satellites (down slightly from the originally planned 3,236) into low Earth orbit by 2029. Under the terms of the Federal Communications Commission’s license, half of that total would have to be deployed by mid-2026.
When Project Kuiper’s first two prototype satellites were launched last October for testing, Amazon said that its first production-grade satellites were on track for launch in the first half of 2024, and that it expected broadband service to be in beta testing with selected customers by the end of the year.
Today, Jassy put a slightly different spin on that schedule. “We’re on track to launch our first production satellites in 2024,” he wrote in his letter. “We’ve still got a long way to go, but are encouraged by our progress.”
Jassy amplified on those remarks in an interview with CNBC. “The first big production pieces will be the second half of ’24, and we expect to have the service up in the next year or so,” he said.
