Photo: SpaceX Satelite – sourced from SpaceX on Unsplash
Amazon’s ambitious Project Kuiper, a $10 billion initiative to deliver high-speed satellite broadband to underserved regions worldwide, has officially landed in New Zealand. The Overseas Investment Office (OIO) granted approval in July 2024 for Amazon to establish a 500-square-meter site for telecommunications equipment; the exact location of the site is yet undisclosed.
What Is Project Kuiper?
Project Kupier is Amazon’s satellite internet venture, Jeff Bezos’s answer to Elon Musk’s Starlink. The project plans to deploy 3,236 satellites in low Earth orbit (LEO) at altitudes between 590 and 630 kilometres. This large constellation will aim to provide global internet coverage, with a focus on serving currently underserved and unserved communities worldwide. The first launch of production satellites is scheduled for later this year, with commercial service expected to begin in 2025.
New Zealand’s Role
New Zealand’s geographical location is within the project’s targeted 39- to 56-degree latitude range, making it a critical hub for the early deployment of Project Kuiper’s satellite network. Approval was granted in July for a 500-square-meter site at an undisclosed location in New Zealand. Amazon will use this land to install and operate telecommunications equipment essential for Project Kuiper.
According to Alasdair Grant, Amazon’s head of public policy, New Zealand is set to be among the first countries to benefit from this expansive network. “Starting from 56 degrees north and south, we work inwards in five different phases,” Grant said. This phased approach positions New Zealand as a key player in the project’s initial stages.
In Competition with Starlink
Amazon’s entry into the satellite broadband market places it in direct competition with Elon Musk’s Starlink, which already holds a 14% share of New Zealand’s rural internet market. Starlink has been operational in New Zealand since 2021 and has a constellation of over 1,700 satellites. However, Amazon is undeterred by Starlink’s head start. With the deployment of thousands of satellites, Project Kuiper aims to provide fast and affordable broadband services, crucially in remote and underserved areas.
New Zealand’s important role in this initiative is underscored by the formation of Amazon Kuiper New Zealand Limited, a local subsidiary established to manage the project’s operations and infrastructure within the country. The company will oversee the installation and operation of telecommunications equipment, with customer testing anticipated to begin in 2025 and full commercial service expected by late that year.
The Implications for Connectivity
The potential impact of Project Kuiper on New Zealand’s broadband landscape is substantial. Rural and remote areas that have long struggled with inadequate internet connectivity stand to benefit the most. The promise of affordable, high-speed internet could be a game-changer for these communities, bridging the digital divide and fostering economic growth.
Moreover, Amazon’s presence in the satellite broadband market is expected to intensify competition, potentially driving down costs and improving service quality for consumers. The company has already secured 80 launch slots for its satellite deployment, a move described as “the largest commercial procurement of launch capacity in history.”
Looking Ahead
As Amazon prepares for its first satellite launches later this year, the world will be watching to see how Project Kuiper unfolds. With New Zealand playing a pivotal role, we could serve as a crucial testbed for the project’s global ambitions.
In the broader context, Amazon’s initiative is not necessarily just about competition with Starlink or even about satellite broadband alone; it could shape the future of global internet access altogether.