Amazon (NASDAQ:AMZN) is set to secure a major contract to provide satellite internet services for Australia’s National Broadband Network (NBN), edging out Elon Musk’s Starlink, the Australian Financial Review (AFR) reported on Monday, citing sources familiar with the matter.
Amazon’s Kuiper satellite network has emerged as the preferred option to replace NBN’s ageing Sky Muster service, which relies on two geostationary satellites set for decommissioning by 2032, the AFR report stated.
The deal, which would mark NBN’s first long-term outsourcing of satellite services, still requires approval from Australia’s Finance Minister Katy Gallagher and Communications Minister Michelle Rowland, according to the AFR.
While contracts have yet to be finalized, the process could face delays due to Australia’s upcoming federal election, which would place the government in caretaker mode, potentially stalling the decision, the report stated.
NBN Chief Executive Ellie Sweeney recently told a Senate committee that procurement efforts were well advanced, but declined to confirm which providers were under consideration.
Amazon previously announced that Australia would be among the first countries to access its Kuiper low-Earth orbit (LEO) satellite network, expected to go live in 2026.
NBN’s move to a third-party LEO satellite provider is aimed at improving internet speeds and reducing costs for rural and regional users, the AFR reported.
