Amazon faces license risk as Blue Origin delays satellite launches

In the United States, Blue Origin, Jeff Bezos' space venture, faces a significant setback as it delays the second flight of its New Glenn rocket from early spring to August 15, 2025. This delay creates a pressing situation for Amazon, which is racing to launch its Project Kuiper internet satellites. These satellites are critical to Amazon's plans for a broadband service aimed at competing with SpaceX. Under regulations set by the Federal Communications Commission in 2020, Amazon is required to launch at least half of its 3,200 satellites by 2026 to maintain its operational license. Amazon successfully launched its first batch of Project Kuiper satellites in April 2025, utilizing a United Launch Alliance Atlas V rocket. The second fleet is scheduled for launch on June 16, 2025. However, with a total of 83 launches required for the full satellite constellation, Amazon intends to utilize various launch vehicles, including ULA's Vulcan Centaur and Arianespace's Ariane 6, alongside Blue Origin's New Glenn. The potential delay of New Glenn would significantly hinder Amazon's efforts to meet its launch timeline and put its license at risk. CEO Dave Limp emphasized the challenges faced with heavy launch capacities, something that has become increasingly constrained in recent years. Compounding the problem, an anonymous source has indicated that even the August launch date may be overly optimistic, suggesting that the rocket might not be ready until September. This raises concerns about Amazon's ability to launch the necessary satellites before the impending deadline. As the competition for broadband satellites heats up, the urgency for Amazon to meet its launch schedule becomes even clearer. The company is caught in a race not only to complete its satellite constellation but also to compete against established players, notably SpaceX, which has already made significant progress in deploying its own satellite internet service. If Amazon fails to launch 50% of its satellites by 2026, the consequences could be dire, leading to a potential license loss and a major setback in their ambitious plans to establish a foothold in the broadband market.