Amazon's plan represents the most serious and disruptive challenger to several companies vying to build similar networks, multiple analysts and industry executives told CNBC on Thursday.
Amazon's plan to launch thousands of internet satellites to connect billions of people around the world represents a serious and underappreciated entrant in the space business, multiple analysts and industry executives told CNBC.
"We've known for a long time that there is a significant portion of the population that's unconnected," Chad Anderson, CEO of venture capital firm Space Angels, told CNBC."Already, there's been a lot of value in connecting these people to the global economy." The move from the e-commerce company surprised some, as it's"coming from Amazon and not Blue Origin, Bezos' pet space project," Korus said. While privately-held Blue Origin is also wholly-owned by Bezos, he holds only about 12 percent of Amazon's shares. This means that, as Blue Origin has been allowed to progress more steadily, the satellite venture being built by Amazon is beholden to show results for public shareholders.
Given the cacophony of undertakings, another executive that the"biggest takeaway is the extraordinary ambitions Bezos has for Amazon." His track record with the Amazon empire is universally revered, executives said. And,"if I'm one of the other players, like a Starlink or a OneWeb, my radar just went off like crazy," one person said. The opportunity is narrowing to stay ahead of Bezos.
Moreover, an industry official highlighted that Amazon's ability"to bundle internet access with other offerings is arguably more meaningful" than a standalone internet broadband network, the person said. The latter is not a new idea, either, as many within the space industry have theorized and even attempted building a network like this in the last few decades.
Whether or not Musk's network will directly compete with Bezos' for market share is unclear at this point, as several executives noted that Bezos focuses much more on opportunities than the competition. It's a long and difficult road to orbit for any of these satellite ventures. Or, as many executives say:"Space is hard.""If they're pursuing this aggressively then it's a lot of capital but Amazon's always been willing to spend for future growth," Korus said.
"If you happen to also own a rocket launching company then you have a bit of an advantage," one executive said.
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