Amazon (AMZN) Stock: Seeks FCC Approval for 5,000 Direct-to-Phone Satellites

Wait 5 sec.

TLDRAmazon seeks FCC approval for a 5,000-satellite mobile phone network worldwideAMZN trades near $232.15 as Amazon expands its satellite network strategyThe proposed network would connect phones beyond traditional cell tower coverageAmazon’s Globalstar deal could provide spectrum for direct mobile servicesThe plan pits Amazon against SpaceX and AST SpaceMobile in direct-to-deviceAmazon.com Inc. (AMZN) traded around $232.15 after giving up earlier gains during Monday’s session. The stock remained under pressure after failing to hold above $235, while support formed near $232. Meanwhile, Amazon requested Federal Communications Commission approval to deploy 5,000 satellites for direct-to-phone mobile services, expanding its space communications strategy.Amazon.com, Inc., AMZNAmazon Expands Satellite Ambitions With FCC FilingAmazon filed an application with the Federal Communications Commission to launch a constellation of 5,000 low-Earth orbit satellites. The proposed network will connect directly to smartphones and compatible mobile devices. It will provide messaging, data, and emergency communication services in areas without traditional cellular coverage.The filing marks Amazon’s latest expansion into satellite communications.The proposal places the company in direct competition with SpaceX’s satellite-based mobile network. Both companies seek to expand global connectivity through low-Earth orbit satellite constellations.The planned system will support global mobile coverage through direct satellite connections. Consequently, users could access communication services without relying on nearby cellular towers. Amazon stated that the network will also support emergency communication in remote locations.Globalstar Acquisition Supports Mobile Network StrategyAmazon announced plans earlier this year to acquire satellite operator Globalstar Inc. for $11.6 billion. The acquisition will provide access to wireless spectrum capable of transmitting data directly to mobile phones. As a result, the company can strengthen the technical foundation for its proposed satellite network.The Globalstar transaction complements Amazon’s broader communications strategy. In addition, the spectrum assets will support direct-to-device connectivity across multiple regions. The acquisition also expands Amazon’s capabilities beyond broadband satellite services.Amazon has already secured partnerships with several telecommunications providers. The company works with Vodafone Group PLC and DirecTV to deliver satellite-based connectivity through existing mobile services. Furthermore, Amazon stated that it intends to pursue additional agreements with telecommunications companies.Competition Grows in the Direct-to-Device MarketThe satellite communications market continues to attract large technology and telecommunications companies. SpaceX operates a similar direct-to-device service through its Starlink partnership with T-Mobile US Inc. Meanwhile, AST SpaceMobile has agreements with Verizon Communications Inc. and AT&T Inc. to develop comparable services.Amazon is also building Amazon Leo, a broadband satellite network designed to provide internet connectivity through dedicated ground receivers. The project serves a different purpose from the proposed direct-to-phone satellite system. However, both initiatives form part of Amazon’s broader satellite communications business.Amazon expects Amazon Leo to begin commercial service before the end of the year despite earlier launch delays. The broadband network will compete with SpaceX’s Starlink internet service. In addition, Amazon has an agreement with Apple Inc. to provide satellite connectivity for supported iPhone and Apple Watch devices through Amazon Leo.Amazon’s latest FCC request adds another step in its satellite expansion strategy. The filing combines direct-to-device communications with the company’s existing broadband satellite plans. These projects position Amazon among the largest companies developing space-based communication infrastructure.The post Amazon (AMZN) Stock: Seeks FCC Approval for 5,000 Direct-to-Phone Satellites appeared first on Blockonomi.