Amazon is set to begin initial commercial service of its low-Earth-orbit (LEO) broadband offering, Leo, following the deployment of 29 satellites on an Atlas V rocket. This latest launch, the final for Amazon using an Atlas V, brings the total number of deployed satellites to 396. According to Chris Weber, VP heading business and product for Amazon Leo, this number is "enough to support continuous service across initial latitudes," putting the company on track to meet its "mid-2026" target for commercial availability. Early adopters should anticipate performance improvements with future satellite launches as the company aims for a planned 3,232 Leo satellites.
Bank of America projects that Amazon could commence commercial service in the third quarter, anticipating the company's total spending on the initial constellation to be about $25 billion through 2028, excluding consumer equipment. By 2032, the bank estimates potential consumer broadband revenue could reach around $14 billion if Amazon captures a 25% market share. Bank of America has reaffirmed its Buy rating on Amazon.com (AMZN) with a $310 price target, highlighting the Leo satellite network as a new growth driver.
The satellite internet market is becoming increasingly competitive. SpaceX's Starlink, a major competitor, currently has over 10,000 satellites in operation and has already provided robust internet connectivity in over 160 countries. Starlink launched its "Better than nothing beta" in 2020 with almost 900 satellites, offering speeds between 50Mbps and 150Mbps. Currently, Starlink boasts median download speeds of 200Mbps, 10Mbps to 40Mbps uploads, and latency around 25ms. Amazon Leo has secured a partnership with Delta Air Lines to provide service across 500 planes beginning in 2028, with aviation antenna designed to support download speeds of up to 1 gigabit per second.
