One of the big questions about Amazon’s new home internet service is cost. As we approach launch later this year, cost becomes an even more important issue.
Amazon’s CEO said he expects the new internet service to be affordable and reach 400 million to 500 million households that don’t already have access to the internet. What does low price mean?
Amazon CEO Andy Jassy was interviewed by CNBC’s Jim Cramer, and Jassy said: In fact, I’m very bullish on the business. ”
A recent leak reveals that a kit to get started with Amazon’s new internet service can be built for just over $200, which is cheaper than Starlink charges.
Amazon’s standard satellite dish promises download speeds of up to 400Mbps and costs less than $400 to manufacture, according to Bloomberg. This allows Amazon to reduce the $599.99 cost SpaceX charges for the standard Starlink kit.
Additionally, standard internet service with up to 400 Mbps download is expected to cost less than $100 per month.
Amazon has long said it wants to offer cheaper satellite internet options. If your kit costs less than $400 to manufacture, you can sell it for significantly less than the $599.99 Starlink charges. Many companies sell starter kits at or near cost to get as many customers as possible to sign up for a monthly fee. Unfortunately, we don’t know how much Amazon plans to charge for the monthly service.
Amazon is driving the incredible speeds of satellite-based internet. Amazon Internet customers have three internet speed options available to them:
standardStandard comes with an 11-inch square antenna that provides up to 400 Mbps downstream speeds. Standard is perfect for most homes. Amazon is expected to sell the Internet at this price for less than $100 per month.
ProfessionalIf you need a lot of speed, Amazon has an 11″ x 30″ Pro antenna that can provide speeds of up to 1 Gbps. Pro is ideal for businesses and large households.
portableIf speed isn’t important to you and you want something that’s easy to travel with, consider Amazon’s ultraportable version, which measures 7 inches by 7 inches and offers speeds of up to 100 Mbps.
These speeds are significantly faster than older satellite internet services, and the Pro version is significantly faster than Starlink’s average speeds. The question now is: what will the speeds be like once this service is in general use?
Amazon hopes to begin limited testing in late 2024 and gradually roll out the service in 2025. Similar to the Starlink rollout, the service should initially be available in a limited number of regions.
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