FCC Grants Amazon Leo 2-Year Satellite Deployment Extension

The extension provides Amazon Leo critical time to overcome launch delays and technical issues, enabling it to build out a competitive satellite broadband platform against Starlink. This regulatory intervention signals the FCC's intent to diversify the LEO broadband market, potentially driving innovation and service improvements. Watch for the FCC's decision on the Globalstar acquisition, as it indicates Amazon's direct-to-device strategy and its competitive stance against SpaceX's similar D2D plans.

The FCC’s ruling arrives as SpaceX prepares for a June 2026 IPO on a reported $1.75 trillion valuation, per Reuters and Bloomberg. Recent S-1 filings reveal Starlink has eclipsed 10.3 million paid subscribers globally, generating nearly $11.4 billion in annual revenue for 2025. While Starlink dominates the sector, analysts at Barclays noted in June 2026 that Amazon's Leo project remains a viable second-place contender, with potential annual revenue reaching $10 billion by 2030 facilitated by its Prime membership base. However, Amazon still faces a constrained launch market; the ULA Atlas V has only one flight remaining for Amazon, and New Glenn remains grounded following a May 2024 test explosion that damaged its primary pad. Amazon is now increasingly reliant on Arianespace’s Ariane 6, which successfully deployed 29 satellites in late May 2026 according to Gulf Times reporting. Simultaneously, the Globalstar acquisition targets the emerging direct-to-device (D2D) market. Per Broadband Breakfast, Amazon disclosed in May 2026 filings that it will take over Apple's 20% stake in Globalstar as part of the $11.5 billion deal, promising to continue supporting iPhone satellite services while integrating Globalstar’s L-band and S-band spectrum into its own constellation architecture to compete with the Starlink Mobile platform.