Amazon.com Inc. (NASDAQ:AMZN) stock gained Monday after the company announced it is expanding its enterprise-focused satellite internet services as it moves toward commercial operations.
With more than 150 satellites in orbit and initial network testing underway, Amazon is launching a preview program that allows select business customers to test Amazon Leo (formerly Project Kuiper) hardware, software, and network services ahead of a wider rollout next year.
Amazon designed Leo to deliver reliable, high-speed internet to businesses, government agencies, and organizations in areas without dependable connectivity.
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The system aims to close critical connectivity gaps across industries ranging from energy and manufacturing to media and transportation.
New Leo Ultra Terminal Revealed
Amazon also unveiled the final production design of the Amazon Leo Ultra terminal, an enterprise-grade phased array antenna delivering up to 1 Gbps download and 400 Mbps upload speeds, making it the fastest commercial phased array antenna available.
Leo Ultra’s weather-resistant design withstands extreme temperatures, precipitation, and high winds, and its integrated, no-moving-parts design allows quick installation and reliable operation in remote or challenging environments.
The terminal leverages custom Amazon-designed silicon and proprietary RF algorithms to maximize throughput while minimizing latency, supporting video conferencing, real-time monitoring, and cloud computing.
The service connects directly to Amazon Web Services and other cloud or on-premises networks, enabling secure private data transfer without touching the public internet.
Customers can choose Direct to AWS for simplified, low-latency cloud connections or Private Network Interconnects to link remote sites directly to data centers, reducing deployment from months to days.
Amazon has already signed agreements with companies, including JetBlue Airways Corp (NASDAQ:JBLU), Vanu Inc., Hunt Energy Network.
Through the enterprise preview, these customers are testing production hardware and software, helping Amazon refine its offerings before a broader commercial launch.
Amazon is shipping Leo Pro and Leo Ultra units to preview participants and plans to expand the program as it adds coverage and capacity to the network.
Satellite Internet Race Heats Up
As the satellite internet race heats up, major players like Amazon are vying for a slice of a market projected to reach $40 billion by 2030.
Elon Musk’s SpaceX holds a substantial early lead. Starlink already operates more than 9,000 satellites in orbit, while Amazon only began deploying its first production units in April after repeated delays and has under 200 satellites aloft so far.
The company is still ramping up its constellation, with another batch scheduled to launch on a United Launch Alliance Atlas V rocket in December, according to Bloomberg.
Analyst Commentary
Bank of America Securities analyst Justin Post highlighted Project Kuiper as a top management growth initiative despite Amazon’s cost-focused agenda. Post noted that Amazon launched its first two batches of satellites—54 total—in the second quarter of 2025 and expects an accelerated launch pace in the second half of 2025 and 2026.
Post estimates Amazon could spend $23 billion to build the full 1,618-satellite constellation (excluding consumer equipment costs) and projects near-term expenses of $600 million in the second quarter, $800 million in the third quarter, and $1.1 billion in the fourth quarter of 2025.
Consumer service could begin in late 2025, though timing remains uncertain, with potential capitalization starting in the first quarter of 2026 or later.
Highlighting market potential, Post pointed out that 2.6 billion people worldwide still lack broadband access and that capturing just a 30% consumer share could generate $7.1 billion in revenue for Amazon by 2032.
AMZN Price Action: Amazon.com shares were up 2.34% at $225.85 at the time of publication Monday, according to Benzinga Pro.
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