By awarding a major satellite deal to Amazon, Australia bypassed Starlink despite its existing customer base and coverage.
Australia’s government-owned broadband network has chosen Amazon’s Project Kuiper to deliver satellite internet to remote areas, bypassing Elon Musk’s Starlink despite its established presence in the country.
From next year, low-Earth orbit (LEO) satellites operated by Project Kuiper will begin replacing two government-owned satellites due for decommissioning in 2032, according to a joint statement by NBN Co and Amazon. The deal, whose financial terms were not disclosed, aims to provide high-speed internet to around 300,000 homes and businesses beyond the reach of NBN’s terrestrial network.
The announcement marks a significant boost for Amazon’s still-untested service. Project Kuiper has only 78 satellites in orbit since its first launch in April, though it plans to expand to more than 3,200. By contrast, Starlink, operated by Musk’s SpaceX, has deployed about 8,000 satellites since 2019 and already serves over 250,000 Australian customers. Major telecom providers sell Starlink connection kits, and government agencies, including the Australian Electoral Commission, use its services.
Despite Starlink’s market lead, NBN said its choice of Project Kuiper followed a “rigorous procurement process”, though it did not explain why Amazon’s offering prevailed. The system will use interlinked LEO satellites equipped with optical connections, communicating with ground antennas to deliver broadband.
The move represents a missed opportunity for Starlink, which is currently experiencing network outages, according to its latest service update. Analysts suggest that Kuiper’s deal with NBN could give Amazon a crucial foothold in the competitive satellite internet market, as governments worldwide explore alternatives to Starlink’s dominant service.
