Jeff Bezos’ Amazon internet satellites: ‘4 billion brand-new customers’

which’s a long as well as difficult road to orbit for any of these satellite ventures. Or, as many executives say: “space is actually hard.”

One of the key unknowns of Amazon’s proposal is actually the total cost of the network.

“If they’re pursuing which aggressively then which’s a lot of capital yet Amazon’s always been willing to spend for future growth,” Korus said.

Amazon may have already begun the process of building satellites yet within its statement on Thursday, the company said which looks “forward to partnering on which initiative with companies which share which common vision.” Industry officials, as well as Korus as well as Anderson, were split on whether or not Amazon would certainly bring the intensive process in-house. SpaceX is actually manufacturing its own satellites, while OneWeb is actually collaborating with Airbus on a joint venture to build its network.

“I don’t know which they would certainly have a some sort of which builds which for them. Look at how he built Blue Origin,” Anderson said.

Korus estimated which SpaceX incorporates a goal of $1 million per satellite, which is actually about the same cost of OneWeb’s. Korus as well as four additional space executives believe Amazon’s network would certainly cost between $3 billion to $4 billion altogether, while a fifth executive said which “wouldn’t be a shock if which cost at least $5 billion. Again, Blue Origin may help alleviate those pressures.

“If you happen to also own a rocket launching company then you have a bit of an advantage,” one executive said.

yet Korus noted which the total cost is actually less important, given how space projects are known for cost overruns. Additionally, one executive said which the dollar amount isn’t critical as “Bezos sweats money at which point.”

Time is actually likely more important as well as potentially more costly. Estimates by both the analysts as well as executives ranged by several years to eight years, with many variables in between.

“I would certainly think which about a 10-year timeline is actually probably what we are talking about here,” George Nield, former leader of the FAA’s space unit, told CNBC. Nield added which the time frame could be shorter because the brand-new generation of space companies “has already demonstrated its ability to accomplish things faster than traditional aerospace programs.”

There’s one variable which may shorten the time until Amazon’s first satellite launch – which’s possible which Bezos’ company may have been working on the project quietly. “Bezos doesn’t announce anything until he absolutely has to,” Anderson said, which means Amazon could be “a couple years” or more into developing the program.

The ground stations may be taken care of with the AWS developments yet another looming issue is actually the ground antenna which will receive the signals by the satellites.

“If you’re’ going to provide internet access to the people which don’t have which right today then there’s got to be some kind of antenna to receive which signal as well as right today those are fairly expensive,” Korus said.

One executive pointed out which which technological hurdle makes which difficult to provide real coverage in rural areas. Remote African or Alaskan villages may be covered by the network’s umbrella, yet “hot-spotting” those areas requires a solution to the ground receiver problem.

“People are working on bringing [the cost as well as size of those antenna] down right today,” Korus said.

Overall, Amazon is actually entering into “a dog fight right today” among the proposed internet satellite constellations, an industry official said. There are billions of dollars pursuing these different goals of “space-based WiFi” as well as doing the business case close for even one venture has yet to happen.

“which’s going to be the battle of big financial heavyweights,” another executive said.

Regardless, Amazon’s entrance should be a wake-up call for any business involved inside market, whether which’s traditional aerospace companies, private space ventures or even Silicon Valley tech giants.

“We’re at which inflection point in space history where the barriers to entry are no longer there,” Anderson said.