Amazon's Project Kuiper to Replace Australian Government-Owned Internet Satellites with Elon Musk's Starlink Missing Out

Amazon's Project Kuiper will start replacing Australian government-owned internet satellites next year, providing connectivity to those without terrestrial access. NBN Co chose Kuiper over Elon Musk's Starlink, citing the latter's lack of operational history and Amazon's $15 billion investment in the program. The deal aims to give high-speed internet to 300,000 homes and businesses unreachable by NBN's terrestrial network.

July 02, 2025

The Australian government-owned internet network, NBN Co, has announced a partnership with Amazon's Project Kuiper to provide satellite internet services to approximately 300,000 homes and businesses currently unreachable by NBN's terrestrial network. The agreement, effective from next year, will see low-Earth orbit satellites owned by Amazon's Project Kuiper replace two Australian government-owned satellites due for decommissioning by 2032 [1].

The decision to opt for Amazon's Project Kuiper over Elon Musk's Starlink was based on several factors. While Starlink is the world's largest provider of such network services with over 8,000 satellites in operation, NBN Co cited Starlink's lack of operational history and Amazon's substantial investment in Project Kuiper as critical considerations. Amazon has reportedly invested approximately $15 billion into Project Kuiper [1].

The partnership aims to deliver high-speed internet to rural, regional, and remote areas of Australia. The initial rollout is expected to commence in Tasmania, with services gradually expanding northward over the coming months. This marks a significant upgrade from the current Sky Muster service, which has a geostationary footprint covering around 307,000 premises [2].

Project Kuiper, with its planned deployment of over 3,200 low-Earth orbit satellites, promises to offer "city quality broadband" with download speeds up to 400Mbps for residential customers and up to 1Gbps for enterprise customers. The satellites are connected through optical links and communicate with ground-based antennas and other connection points [2].

NBN Co's CEO, Ellie Sweeney, underscored the importance of this partnership in bringing advanced broadband technology to remote and rural areas. "LEO satellite broadband, supplied by NBN Co and powered by Amazon’s Project Kuiper, will be a major leap forward for customers in parts of regional, rural and remote Australia," Sweeney stated [2].

The transition is expected to be smooth, with the existing Sky Muster satellites continuing to operate until approximately 2032 to support the migration process. NBN Co will work with Project Kuiper and retail service providers (RSPs) to determine pricing and expected speeds for the new service [2].

This strategic partnership not only addresses the connectivity gap in remote areas but also positions NBN Co at the forefront of adopting cutting-edge satellite technology. The financial terms of the deal were not disclosed, but the investment in Project Kuiper underscores Amazon's commitment to the project's success.

References:
[1] https://www.reuters.com/business/media-telecom/australias-internet-network-signs-amazon-satellite-service-2025-08-05/
[2] https://www.techradar.com/computing/wi-fi-broadband/no-starlink-thanks-nbn-co-is-teaming-up-with-amazon-for-future-satellite-internet-services