Amazon’s move to buy Globalstar for $11.6 billion adds radio spectrum and satellite technology to its space ambitions, but it does not remove the most immediate barrier to building a large-scale low-Earth orbit broadband network - the limited supply of reliable rocket launches, analysts say.
Company filings and industry commentary show Amazon has launched just 243 of the 3,236 satellites it pledged in 2019. That shortfall stems from a combination of rocket shortages, manufacturing interruptions and launch postponements, which together have slowed the pace at which Amazon can put hardware into orbit.
That constraint has forced Amazon to rely on external launch providers. In one indication of that reliance, the company has used Falcon 9 rockets owned by a competitor to carry payloads into space. Such dependence on third-party launch services constrains how quickly Amazon can expand its network, analysts warn.
By contrast, SpaceX has largely used its own rockets to accelerate Starlink deployment. The company has reached a markedly larger scale and coverage with an estimated 10,000 satellites in orbit, creating a significant lead in constellation size.
Both firms are targeting the market for satellite-delivered internet, a segment that could include airlines, cruise operators, remote business sites and populations without reliable terrestrial broadband. But analysts say that, even after the Globalstar deal, the structural gap in deployment speed between Amazon and SpaceX remains.
"Unless Amazon can solve deployment speed and launch access, the gap remains structural, not just numerical," said Gregory Radisic, a senior teaching fellow and lecturer at Bond University.
Globalstar’s existing network architecture is tailored toward direct connections to mobile devices. Starlink has concentrated on broader broadband services, and is pursuing similar mobile device connectivity through partnerships with telecommunications firms.
This year Amazon formally asked the U.S. Federal Communications Commission for a two-year extension to a July deadline to deploy about 1,600 satellites, roughly half of its originally planned constellation. The FCC has not ruled on that request.
Regulatory scrutiny has increased as deployment has lagged. FCC Chair Brendan Carr publicly criticized Amazon’s pace after the company objected to a proposal by a rival to launch a much larger constellation. Carr, who will have influence over the approval of the Globalstar transaction, described the agency as "very open-minded" about the acquisition.
Amazon may ultimately look to in-house launch capacity to reduce its dependence on outside providers. Blue Origin, the rocket-maker founded by Jeff Bezos, is developing New Glenn, a partially reusable heavy-lift vehicle intended to carry substantial satellite payloads. New Glenn conducted a debut flight in January 2025 and is undergoing additional testing as Blue Origin works towards more frequent missions.
However, New Glenn has not yet reached the steady launch cadence Amazon would need to scale its constellation rapidly, so third-party launch reliance persists for the near term.
Market observers note the sector is attracting substantial capital and competition. "What’s certain is that the space race is heating up and big money is expected to be ploughed into this industry over the coming years," said Dan Coatsworth, head of markets at AJ Bell.
The transaction adds spectrum and a different technical approach to Amazon’s toolbox, but analysts say those assets will not overcome the operational bottleneck created by limited rocket availability and launch schedule risk. Until deployment speed and consistent launch access are addressed, Amazon will be working to close a lead that SpaceX has already built through vertical integration of manufacturing and launch capabilities.
Separately, some retail-facing commentary in the market has referenced the question of whether investors should allocate capital to Amazon shares, with the ticker AMZN referenced in investor tools and strategies assessing the company’s prospects amid these developments.