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COBANK: LEO SATELLITE BROADBAND EXPECTATIONS NEED TO COME BACK TO EARTH
Source: CoBank news release



Low Earth Orbiting (LEO) satellites are being touted as a solution to bridge the digital divide, as they will be able to reach remote parts of the country with high-speed data connectivity.

Key proponents of the LEO solution include Elon Musk's SpaceX and Amazon's Project Kuiper, which are also two of the leading LEO satellite operators.

An estimated 3.8 billion people around the world do not have access to the internet, which offers a large, untapped market. And as the cost to build and launch LEO satellites comes down, there are reasons for optimism.

However, there is no shortage of headwinds facing the industry including bankruptcies that could reduce access to private capital, competition in urban and suburban markets, and space junk issues.

If there is a market for LEO satellite broadband networks, Amazon is well-positioned to succeed given its access to capital, bundling opportunities, and existing ground station infrastructure.

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