Australian Internet Network Collaborates With Amazon Satellite Service

NBN Co, selected Amazon startup satellite service Project Kuiper (photo: x @BiznessReporter)

JAKARTA - Australia's government-owned internet network, NBN Co, has selected Amazon startup satellite service Project Kuiper, which has not been tested, to connect people in areas that are not covered by the ground network, ruling out Elon Musk's Starlink.

This agreement, whose financial value is not disclosed, will provide high-speed internet access for around 300,000 homes and businesses that are not covered by the NBN terrestrial network.

Starting next year, Project Kuiper's low-orbit satellite will replace two Australian government-owned satellites scheduled to be deactivated in 2032, according to a joint statement by NBN and Amazon on Tuesday, August 5.

"It's true that Project Kuiper hasn't launched a service in Australia yet or globally, but they are reportedly investing about 15 billion US dollars in the program," Gavin Williams, head of NBN's regional and remote service development, said in an interview.

"We firmly believe that Kuiper is a partner who will fulfill their promise," he added.

NBN stated that this decision was taken after a strict procurement process, but did not explain the reasons for choosing Amazon services over Starlink.

This deal is a missed chance for Starlink, the world's largest network service provider, which already has more than 250,000 subscribers in Australia, based on industry data.

Telecommunications analyst Paul Budde said the decision was likely influenced by the need to minimize the risk of sovereignty due to handing over important Australian infrastructure controls to companies linked to "a highly unpredictable America".

"I'm sure full dependence on Starlink won't be considered a lucrative situation," Budde, an industry veteran who has been a broadband policy consultant for the United Nations, said in an email.

If US President Donald Trump isn't satisfied with something, he can use Starlink or Kuiper for political purposes, which is a worrying factor, Budde added.

Starlink did not immediately comment on this.

Australia's two largest telecommunications providers sell Starlink residential connection devices, and several government agencies, including the Australian Election Commission, also have contracts with Starlink.

Starlink, a unit of Musk's SpaceX rocket company, now has 8,000 fast-orbit satellites since its first launch in 2019, while Amazon's service has only had 78 satellites since its premiere in April.

NBN and Amazon said Project Kuiper will eventually have more than 3,200 low-orbit satellites that will connect via optical links and communicate with antennas as well as other ground spots.

Williams from NBN added that the provision of critical infrastructure involves regulatory and legal obligations, with technical, operational and commercial considerations that are part of the procurement process.