Amazon Leo’s Latest Expansion Is Good News for Taxpayers

This op-ed was originally published in Inside Sources.

Amazon Leo and AT&T Business recently announced an expansion of their partnership, as the former also revealed new launch capacity as it tries to gain a foothold in the low-Earth orbit (LEO) satellite broadband market.

AT&T and Amazon said they have reached agreements to integrate their services for converged connectivity solutions. Instead of positioning satellites as a standalone service, AT&T’s unified architecture will allow business customers to leverage the connectivity options that best support their needs in information technology and network environments, the company said in a news release.

Increased connectivity also benefits taxpayers by creating less reliance on costly government-run broadband-expansion programs.

AT&T and Amazon Leo are moving through a phased deployment designed to ensure what AT&T calls “business-grade reliability” before the network is fully operational, but AT&T points out its confidence in Amazon Leo is “grounded in extensive technical validation.”

“Customers have no shortage of connectivity options. What enterprise and public sector customers need is a connectivity platform that delivers greater reliability,” said Shawn Hakl, the senior vice president and head of product for AT&T Business. “AT&T is uniquely positioned to provide that reliability by bringing together three critical network layers — fiber, 5G, and low Earth orbit satellite — into a single managed architecture.”

AT&T notes that the reach of Amazon Leo will extend the two companies’ abilities to serve previously underserved areas of the United States. These remote and rural areas are the target of multiple taxpayer-funded programs aimed to expand digital access, but watchdog reports have noted that the programs are riddled with waste and often duplicative. The partnership will also enhance AT&T’s network resilience and redundancy across multiple technologies. Business-grade managed services will be powered by Amazon Web Services and backed by AT&T’s expertise in serving large-scale business and government, the press release states.

Amazon Leo also announced that it is adding six new Ariane 6 launches, expanding its total Arianespace commitment to 24 launches. The company’s partnership with Arianespace, the world’s first commercial launch provider, has proven fruitful as Arianespace has delivered 100 Amazon Leo satellites into orbit across three missions in less than five months. Amazon initially signed an agreement with Arianespace in 2022 to secure more than 80 launches for its satellites.

Amazon Leo is the third-largest satellite constellation in operation, with nearly 400 satellites in orbit. The company intends to start its LEO satellite broadband service before the end of this year. LEO satellites operate 350 to 500 miles above the Earth’s surface. This altitude allows the satellites to deliver faster internet speeds while also making their launches more cost-efficient.

CNET noted that SpaceX’s Starlink now operates about 10,000 satellites to provide internet coverage to more than 150 countries, but has about a seven-year head start on its rival. Amazon Leo’s planned purchase of Globalstar for $11.6 billion will help close the gap. Globalstar provides coverage to more than 120 countries through LEO broadband services.

In March, the Taxpayers Protection Alliance filed comments to the Federal Communications Commission supporting a 24-month extension requested by Amazon to deploy 1,600 satellites as part of its constellation.

TPA noted the initial milestone would be missed largely due to circumstances beyond Amazon’s control. Although Amazon has purchased more launch capacity than any commercial operator in history, it is producing satellites faster than partners can launch them.

Amazon said that development timelines for next-generation launch vehicles have extended beyond initial projections, contributing to the Leo deployment delays. The company added that it would miss the initial milestone, but remains on track to meet its final deployment milestone.

Amazon Leo will help bridge the digital divide for rural and underserved communities that are too expensive to serve with fiber infrastructure. The company’s partnership with AT&T Business will help ensure businesses get faster internet. These developments will benefit consumers in the long term by expanding connectivity options while reducing the need for taxpayer dollars.