Amazon's Project Kuiper In Talks With Taiwan For Satellite Partnership

Taiwan is advancing its efforts to secure reliable satellite-based communications by entering discussions with Amazon.com Inc‘s (NASDAQ:AMZN) Project Kuiper.

The move marks the Taiwanese government’s attempts to strengthen its internet and mobile infrastructure amid concerns over potential Chinese interference, the Financial Times reports.

Wu Cheng-wen, Taiwan’s technology minister, told the FT about the shortcomings of Eutelsat subsidiary OneWeb’s existing network.

Also Read: ON Semiconductor and Denso Team Up to Boost Self-Driving Tech

Wu cited delays in OneWeb’s second-generation satellite development as a factor driving the search for additional partners, notably Amazon’s Kuiper.

OneWeb denied claims of financial instability, stating that its constellation development was on track and fully backed by its shareholders as per FT. The company asserted that it remains the only low-Earth-orbit (LEO) provider ready to deliver services in Taiwan.

Taiwan’s interest in LEO satellite networks stems from SpaceX’s Starlink’s role in maintaining Ukraine’s communications during the ongoing conflict with Russia.

The island sees such technology as a backup if undersea cables supporting its internet and telecom systems are severed in a conflict scenario.

However, Starlink’s involvement remains unlikely, as Elon Musk has declined to meet Taiwan’s joint-venture requirements and faces scrutiny for his business ties to China, FT reports.

Meanwhile, Taiwan’s government is also working to build its satellite constellation through its national space agency.

Wu announced plans to develop a rocket launch site in southeastern Taiwan, with operations expected to begin within five years.

Project Kuiper from Amazon is gearing up to take on SpaceX’s Starlink satellite service. The satellite rivalry between Amazon and SpaceX is heating up as Project Kuiper expands its global footprint.

Project Kuiper secured eight licenses and purchased land in New Zealand to install ground stations, supporting its satellite broadband initiative. Meanwhile, SpaceX’s Starlink increased its New Zealand user base from 12,000 to 37,000 in 2023.

India’s Department of Telecommunications (DoT) has instructed Starlink and Amazon to submit security compliance details as part of their applications to offer satellite communication services in the country.

Starlink and Project Kuiper are pushing for a 1% spectrum charge and a 20-year license to launch satellite communication services in India.

Amazon plans to deploy over 3,000 satellites, with production launches set for late 2024 and commercial broadband services expected in 2025. Starlink, with over 6,000 satellites already in operation since 2019, maintains a significant early advantage.

Price Action: AMZN stock is down 0.78% at $231.12 at last check Tuesday.

Also Read:

• Super Micro Drops Below 50-Day Average, Faces Nasdaq 100 Removal Just Months After Entry

Photo: Shutterstock