Is Blue Origin Set to Challenge Starlink with New Satellite Service?

Blue Origin, the space venture led by Amazon founder Jeff Bezos, is poised to launch over 5,400 satellites, establishing a new communications network named TeraWave. This initiative aims to provide global internet access with remarkably high data transfer speeds. However, despite its ambitious plans, TeraWave will still have a significantly smaller presence in orbit compared to Elon Musk's Starlink, which dominates the satellite internet sector.

Last updated: 30 September 2023 (BST)

What’s happening now

Blue Origin has announced that it will launch a substantial number of satellites to create TeraWave, a new communications network designed for high-speed internet. This initiative is particularly aimed at serving data centres, businesses, and governments, rather than individual consumers, distinguishing it from competitors like Starlink and Amazon's Leo project. While Blue Origin's launch plan is ambitious, it faces challenges in competing against established players in the satellite internet market.

Key takeaways

Blue Origin plans to deploy over 5,400 satellites for its TeraWave network.
The network aims for upload and download speeds of up to 6 terabits per second.
TeraWave will focus on serving businesses and governments, unlike Starlink which targets individual consumers.
Blue Origin is launching its satellites by the end of 2027.
Amazon's Leo project is also a competitor, with plans for more than 3,000 satellites.

Timeline: how we got here

Blue Origin's journey to establishing TeraWave has involved several key milestones:

April 2023: Blue Origin launched an 11-minute space flight with an all-female crew, highlighting its capabilities.
November 2022: The company successfully landed a rocket booster on a floating platform, a feat previously achieved only by SpaceX.
September 2023: Blue Origin announces plans to launch TeraWave satellites by the end of 2027.

What’s new vs what’s known

New today/this week

Blue Origin's announcement of TeraWave marks a significant move into the satellite communications sector, with plans to deploy over 5,400 satellites. This is a direct challenge to established networks like Starlink and Amazon's Leo, which have already begun operations or are in advanced planning stages.

What was already established

Before this announcement, Blue Origin was primarily known for its suborbital space tourism flights and some satellite launch services. The company's focus on developing a comprehensive satellite internet network represents a notable shift in strategy, aiming to compete in the lucrative communications market.

Impact for the UK

Consumers and households

For UK consumers, the emergence of TeraWave could eventually translate into improved internet access, especially in rural and underserved areas. However, the primary focus on businesses and governments may limit immediate benefits for individual users. If successful, it could lead to more competitive pricing and better services in the satellite internet market.

Businesses and jobs

Blue Origin’s focus on data centres and government contracts may stimulate job creation in tech and communications sectors. The competition with Starlink and Amazon could also encourage innovation, potentially leading to lower prices and improved service quality for businesses relying on satellite communications.

Policy and regulation

The UK government may need to consider regulatory frameworks for satellite communications as companies like Blue Origin and Amazon expand their networks. Upcoming consultations and discussions around space regulation will be crucial in shaping how these technologies are integrated into existing infrastructures.

Numbers that matter

5,400: Number of satellites Blue Origin plans to launch for TeraWave.
6 terabits per second: Potential upload and download speeds of the TeraWave network.
3,000+: Planned satellites for Amazon's Leo project.
80: Current number of satellites in orbit for Amazon's Leo as of September 2023.
1: The number of companies (SpaceX) previously able to land a rocket booster on a floating platform before Blue Origin.

Definitions and jargon buster

TeraWave: Blue Origin's upcoming satellite communications network.
Starlink: A satellite internet constellation developed by SpaceX, focusing on individual customers.
Leo: Amazon's satellite project aimed at providing high-speed internet access globally.
Terabit: A unit of digital information equal to 1,000 gigabits.

How to think about the next steps

Near term (0–4 weeks)

In the immediate future, stakeholders in the satellite communications sector will be monitoring Blue Origin's developments closely. Industry analysts will assess the technical viability of TeraWave and how it compares with existing services.

Medium term (1–6 months)

As Blue Origin moves forward with its satellite launch plans, developments in regulatory frameworks and partnerships with businesses and governments will become clearer. This will be crucial in determining the network's operational capacity and market penetration.

Signals to watch

Updates on satellite launch schedules and technological advancements from Blue Origin.
Market response from competitors like Starlink and Amazon's Leo.
Regulatory changes or government consultations regarding satellite communications.

Practical guidance

Do

Stay informed about developments in the satellite communications sector.
Explore potential partnerships or services offered by companies like Blue Origin and Amazon.
Evaluate current internet needs and consider how future satellite services may meet those needs.

Don’t

Don’t overlook the importance of regulatory frameworks affecting satellite communications.
Don’t make assumptions about the availability or quality of service from new providers until more details are released.

Checklist

Research the differences between TeraWave, Starlink, and Leo.
Monitor satellite launch schedules and operational announcements.
Assess the impact of these services on your business or personal internet needs.
Stay updated on government regulations regarding satellite communications.
Engage with local businesses and communities about potential benefits from new satellite services.

Risks, caveats, and uncertainties

Despite the ambitious plans for TeraWave, there are significant uncertainties. The technological feasibility of achieving the promised speeds remains to be seen, especially as Blue Origin works to establish its network. Furthermore, the competitive landscape with established players like Starlink and emerging ones like Amazon's Leo could impact market entry and success. Regulatory challenges and public acceptance of satellite technology also pose potential risks.

Bottom line

Blue Origin’s TeraWave network aims to revolutionise satellite communications with its ambitious satellite launch plans and high-speed capabilities. However, the company's focus on businesses and governments may limit immediate consumer benefits. The competition with established players like Starlink and Amazon's Leo will be essential in determining TeraWave's success in the UK market.

FAQs

What is TeraWave?

TeraWave is Blue Origin's upcoming satellite communications network, designed to provide high-speed internet access globally, mainly targeting businesses and governments.

How will TeraWave compare to other satellite services?

TeraWave aims to offer upload and download speeds of up to 6 terabits per second, significantly faster than many existing satellite services, but it will have fewer satellites than competitors like Starlink.

When will Blue Origin start launching TeraWave satellites?

Blue Origin plans to begin launching its TeraWave satellites by the end of 2027, marking a significant entry into the satellite internet market.