Amazon Has Deep Pockets Needed For Satellite Building

Amazon Has Deep Pockets Needed For Satellite Building

Amazon is one of the biggest companies of the world. The company is known to have the biggest on-cloud platform, large fleet of aircrafts and Amazon Prime subscribers who run in millions. The only challenge for internet giants like Amazon is that their subscribers are limited to people who know to use internet.

As per last year’s survey from United Nations, just 50% of world population has internet, rest are still offline. Now Amazon has a target to change this scenario. At the beginning of April, Amazon announced that it is planning to release a set of mini satellites. These will orbit around earth to deliver affordable internet connection at each and every corner of the world.

The project is termed as Project Kuiper. This project will involve billions of dollars and will also come with numerous challenges. Amazon is looking forward to untapped the unexplored markets of Asia and Africa. For this reason, this kind of initiative is extremely important for the company. According to financial experts, using internet might not reduce poverty but will surely increase scope of work and new business ideas might pop up.

Launching their own satellite constellation will also help Amazon provide internet services at an economical price. According to Shagun Sachdeva, who is an analyst at the Northern Sky Research, the constellation of satellites will open new revenue avenues for Amazon. He also informed the huge funds at Amazon’s disposal will help the company get going in this project. Companies who can deal with short-term losses can succeed in this project and Amazon has a big advantage for this reason.

Amazon is not the first company planning to build a constellation of satellites. Bill Gates from Microsoft had also planned such constellation but has failed. OneWeb, which is sponsored by SpaceX and SoftBank is also an ongoing satellite initiative.

By George Montgomery

George Montgomery manages the position of editor at Industry News Focus. His vast experience in business analysis and finance gives him a deep and accurate view of market trends. He has a thorough knowledge of the trends and actions of the market, resulting in a stock loaded into your portfolio. George also includes research and decisive interviews with market professionals and organizations.