A regulatory showdown is unfolding between SpaceX and Amazon (AMZN) over satellite broadband, after the tech giant challenged the Elon Musk-led company’s plan to deploy up to 1 million satellites in orbit. The Federal Communications Commission (FCC) chairman, Brendan Carr, however, has publicly defended SpaceX, suggesting Amazon’s objections may be misplaced.
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New trading tool for AMZN bullsFCC Chair Rebukes Amazon Over SpaceX Satellite Complaints
The dispute began after Amazon filed a 17-page petition on March 6, urging the FCC to reject SpaceX’s proposal to deploy up to 1 million satellites in low-Earth orbit. The megaconstellation is intended to function as solar-powered space-based data centers capable of processing artificial intelligence workloads. Amazon argued the proposal lacks key technical details and questioned whether it could realistically be completed.
However, Carr sharply criticized Amazon in a post on X, saying the company should focus on its own satellite rollout. Carr noted that Amazon is expected to fall roughly “1,000 satellites short of its upcoming deployment milestone”, highlighting the slow progress of its Project Kuiper constellation, with only a few hundred satellites launched so far.
The filing also claimed the proposal appears to be “a lofty ambition rather than a real plan,” adding that deploying a constellation of that size could take centuries, given global launch capacity.
Carr refuted Amazon in comments to sources familiar with the matter, saying he thinks “Amazon should focus on getting Amazon’s house in order” rather than worrying about companies putting satellites into orbit at the pace SpaceX is achieving.
SpaceX Widens Lead With Starlink Satellite Expansion
The dispute highlights the widening competition between Amazon’s Kuiper network and SpaceX’s dominant Starlink system. Amazon has been vying to compete with Starlink through its Leo satellite service, formerly known as Kuiper. The company has invested more than $10 billion into the effort and has launched at least 200 satellites via a variety of launch partners, including Elon Musk’s SpaceX.
Meanwhile, Starlink currently operates around 9,000 satellites in orbit and serves more than six million customers across at least 140 countries, reaching consumers, businesses, governments, and U.S. national security agencies through its Starshield variant.
SpaceX is continuing to expand its constellation after the FCC approved 7,500 additional second-generation Starlink satellites earlier this year. The Gen2 satellites are expected to extend global coverage and support new services such as direct-to-cell connectivity outside the U.S. while strengthening domestic network capacity.
Is Amazon a Buy Or a Hold?
Amazon (AMZN) has been analyzed by Wall Street analysts, with a TipRanks consensus rating of “Strong buy.” While over 40 suggest buying, 3 recommend holding, and 0 recommend selling. Meanwhile, SpaceX remains a private company, with an initial public offering (IPO) reportedly planned at a valuation of $1.5 trillion.
Investors interested in stocks similar to AMZN can consider top players such as Alphabet (GOOGL), Meta (META), and Nvidia (NVDA) in the TipRanks Stocks Comparison Center.
