Business

SpaceX Gets A New Satellite Rival As Amazon Teams Up With AT&T

Telecom
By Rhea Lobo
SpaceX Gets A New Satellite Rival As Amazon Teams Up With AT&T

AT&T signed an agreement this week to offer Amazon Leo satellite broadband to business customers nationwide as a managed layer alongside fiber and 5G networks.

The deal makes AT&T the first major US telecom provider to add Amazon Leo’s low Earth orbit service to enterprise connectivity packages through a phased deployment. Pricing and availability will be announced in coming months.

Amazon gets distribution before it has scale

Amazon Leo is still waiting for its official commercial launch, and AT&T’s deal gives the satellite unit access to a large enterprise channel before the network reaches Starlink’s size.

AT&T serves about 2.5M businesses globally, and Amazon told PCMag that some launched satellites still need to reach operational orbit before service starts later in 2026, according to business customers nationwide.

Starlink remains far ahead

Amazon has 392 satellites in space, including 315 in the correct operational orbit, according to astronomer Jonathan McDowell’s data.

Wedbush Securities estimates Amazon needs 578 satellites in orbit to begin commercial service, leaving it far behind SpaceX Starlink’s 11,124 working satellites.

Starlink’s enterprise and government revenue reached $1.8B in the June quarter, according to satellite dominance. Amazon has regulatory approval for a 3,232-satellite constellation and another 4.5K satellites.

The company has asked the FCC to approve up to 5,105 additional satellites for direct-to-device service starting in 2028.

"Customers have no shortage of connectivity options."

Shawn Hakl, AT&T Business

Amazon is also set to take control of Globalstar’s satellites after an $11.57B deal expected to close in 2027.

The deal does not erase Starlink’s lead, although it gives AT&T a satellite option to sell now and gives Amazon a carrier-backed route into enterprise demand.

Go Deeper