The race is on

Fresh from the press, we've learned that the two prototype satellites built by Amazon are now working. This news was buried by an avalanche of news about AI, chips, Google, and everything else that is currently wrong with the world.

This is the start of the competition between Starlink, which is part of Mr. Musk's conglomerate, and project Kuiper, run by Amazon. BTW: if you think that the US Army is doing nothing, check the DARPA project Blackjack.

What do we get out of this race? To begin, we get thousands of small satellites orbiting Earth in low orbit, which will make observing the night sky even more difficult for astronomers (if anyone cares about them). This also adds to the ever-increasing chance of a collision between all these satellites, or even rockets launching into space. True, the chances are still relatively small, but don't forget that we already have tons of debris from past space exploration out there, and not to mention the Chinese space station, which was almost hit by a Starlink satellite.

However, let's focus on the positives we can get out of this race.

First, the Internet will be everywhere. Unless prohibited by any local government, you will be able to take an antenna anywhere in the world, point it to the sky, and you will have Internet. The smallest antenna from Amazon will be a seven-inch or 17.5-centimetre square with a speed of up to 100 megabits per second. That's enough speed for about six movies at 4K quality watched at the same time. On the road or in a remote location, you get speed that is comparable to your 4G or 5G coverage in any urban area.

The antenna from Starlink goes for US$600, while Amazon hasn’t announced the pricing yet. Both companies have larger antennas for higher speed. The monthly fee depends on the bandwidth and location, and you can get it now for $50/month. Not that expensive, but still more than your current mobile plan. For some, a small price to pay while enjoying the remoteness of the wild while watching your favourite movie on Netflix.

Now, what about Starlink and Amazon, what can they get out of this?

Obviously, they want to make money out of this venture, and on top of that, I would suggest, they are building a network that can support their own businesses. Through Mr. Musk, the Starlink project is connected to Tesla such that every Tesla can be connected to the network without any restrictions. And there is the Optimus, aka Tesla Bot, which–if it ever actually reaches production–will need updates and the ability to communicate with HQ. Amazon, with its sprawling logistic empire, will be able to connect every single vehicle, plane, and person in real time.

Unlike Starlink and Tesla, Amazon also has the world's largest computing infrastructure, immediately ready to start receiving and processing data generated by its satellite network. Plus, Amazon is already operating a network of satellite ground stations. The true extent of Amazon's competitive advantage will become fully apparent in the years to come.

You are witnessing a new recurrent pattern for the history books.