Rural New Zealanders will be the first in the world to access a new satellite-based internet system scheduled for launch in the next 12 months and due to shake up satellite services here.
Amazon used the Rural Connectivity Symposium in Rotorua to announce Project Kuiper, the working title for what has previously been a top-secret project aimed to go head to head in a space-based internet race against Elon Musk’s Starlink.
The US$10 billion ($16.6bn) project aims to get 3200 low earth orbit satellites spread across the globe’s skies to increase access to the internet, with a focus on developing nations.
Amazon’s head of public policy, Alasdair Grant, said the giant United States company intends to launch clusters of satellites from the outer edges of the map and work inwards, putting NZ firmly in the early launch window.
“Starting from 56deg north and south we work inwards in five different phases, and this means countries in the 39deg to 56deg range will be first to receive global coverage.”
The company has secured 80 launch slots on rockets for the massive deployment and built a 20,500 square metre factory in Seattle capable of building the microwave-sized satellites at the rate of about five a day.
Grant said a key aim for Amazon is to ensure the service will be affordable to the millions currently finding it difficult to access the internet. This has required significant R&D to develop a low-cost user terminal that hooks into the satellite network.
He said the estimated cost for a domestic user’s terminal is about US$400.
“The first prototypes were tested last October with 100% success rate and we intend to be launching quite soon.” He could not be more specific on exact launch dates at this point.
In NZ the Starlink system is claiming about 14% of the rural internet market, a level of penetration Grant said had surprised Amazon.
“It is interesting to see how quick the uptake has been and confirms we have made the right decision to enter the market. We believe the market is big enough for multiple players in the constellation business.”
At present Starlink’s standard terminals are retailing at Noel Leeming for $599, while subscription costs vary but can be from $160 to $426 a month.
Queried about the risk of adding to a growing mass of space junk circling Earth, Grant said that had been at the forefront of Amazon’s satellite design.
“The satellites do degrade quicker than geo-stationary satellites because they pass through extremes of temperature. But being only 600km high means it is possible for them to burn up in the atmosphere.”
Life expectancy is estimated to be about six years for the satellites.
One criticism of satellite internet is the effect of “rain fade” in heavy wet weather, but Grant maintained this was less than what can be experienced during wet weather on copper wire-based networks.
He pointed to Telstra Australia, which is decommissioning its copper network, often in favour of using satellite-based systems in its place.
