Amazon has agreed to an $11.6 billion deal to acquire Globalstar, in a move designed to strengthen its long-term satellite internet ambitions. But analysts say the deal does not solve the company’s biggest challenge: a shortage of rocket launches needed to build its planned space network.
Amazon is developing its Project Kuiper system, which aims to deliver high-speed internet globally using a large constellation of satellites in low Earth orbit. The project was first announced in 2019 with a target of more than 3,000 satellites, but progress so far has been limited, with only a small portion of that total launched.
Industry experts say the main obstacle is not funding or satellite design, but the lack of available and affordable rocket launch capacity. Amazon currently depends on external launch providers, including Arianespace and other commercial partners, which slows down deployment and limits how quickly it can expand its network.
The company has also been forced to rely on rival SpaceX for some satellite launches, highlighting how tight global launch capacity has become. SpaceX, meanwhile, continues to expand its Starlink network rapidly by using its own reusable rockets, giving it a significant advantage in speed and scale.
Because of these delays, Amazon has fallen behind its original deployment timeline. Regulators have taken notice, with the U.S. Federal Communications Commission (FCC) raising concerns about the company’s slow progress. FCC Chair Brendan Carr has previously criticised the rollout speed, while the agency continues to review Amazon’s request for an extension to meet its deployment deadlines.
The role of Amazon founder Jeff Bezos and his space company Blue Origin is also being watched closely. Blue Origin’s New Glenn rocket is intended to support heavy satellite launches, but it is still in early development and has not yet reached the level of regular flights needed to support a large satellite constellation.
Analysts say this creates a structural gap between Amazon and SpaceX, not just a temporary delay. Even with the Globalstar acquisition adding spectrum and communications capability, Amazon still lacks the launch infrastructure needed to scale quickly.
Market observers say the satellite internet sector remains highly competitive, with strong long-term demand from airlines, shipping companies, remote regions, and governments. However, the winners will likely be those who can solve the launch bottleneck problem most effectively.
For now, experts say Amazon remains in a catch-up position, with investment strength on one side but operational limitations on the other.
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