Amazon and AT&T team up to challenge SpaceX’s satellite dominance

AT&T has announced a strategic partnership with Amazon to deliver low-Earth-orbit (LEO) satellite internet services to enterprise and public sector business clients, positioning itself as the first major U.S. telecommunications provider to utilize Amazon's Leo satellite network. The collaboration aims to challenge SpaceX's Starlink, which currently dominates the satellite broadband space with over 11,000 operational satellites and 13 million subscribers. Amazon Leo is currently scaling its orbital infrastructure, having deployed 392 satellites (with 315 in operational orbit) compared to the estimated 578 required to launch commercial services later this year. The company has already gained regulatory approval to operate up to 7,732 satellites and has secured prior commercial agreements with airlines including Delta and JetBlue. This partnership provides AT&T with a reliable next-generation broadband expansion path without bearing the full capital expense of building its own satellite fleet. For Amazon, securing tier-one enterprise distribution enhances the commercial viability of its multi-billion-dollar satellite investment against SpaceX's established enterprise market share.