Space-based WiFi to Shake Up World Economy in the Future
Amazon, one of the world’s biggest e-commerce sites, recently announced that it was planning an audacious move that involves taking telecommunication services outside of the world’s atmosphere.
The project, called “Kuiper”, is the latest space venture to be undertaken by another tech giant, Amazon. Its founder and CEO, Jeff Bezos, plans to set up a network of more than 3,236 satellites in order to provide a high-speed broadband internet services from space.
Despite the telecommunications industry now pushing for the development of the next generation internet or 5G, a large part of the world is still unconnected. This infrastructure deficit, according to many tech experts, is a huge business opportunity for tech players, particularly ones that offer cloud services, in which case Amazon does.
According to Space Angels CEO, Chad Anderson, who recently spoke to CNBC, Amazon’s high speed internet profit motive is to create 4 billion new customers with its “space-based WiFi” services. He stressed that the sheer economic values that can be created by connecting a large portion of the world’s underserved population to the global economy is immensely huge.
Although the company did not share any timeline as to when the company will begin mobilising its services, the revolutionary move can potentially shake up the world economy when it eventually materialises.
However, Amazon is not the only tech giant pursuing the opportunity. OneWeb, SpaceX, Telesat and Boeing, for example, are other early entrants into the market. These networks, despite their profit gain prospect, however, have high capital costs and complex technological challenges.
In comparison, the move makes a lot of sense for Amazon. The company has a slight advantage with its ability to bundle internet access with other offerings that Amazon currently offers. This holds great potential to give the company a source of advantage with its internet broadband network.
While the idea to take internet services to space is nothing new, it is becoming the hottest race involving some of the world’s biggest tech giants. Ultimately, the space industry is pointing toward yet another shift that will soon determine how e-commerce will evolve in the future.
Local businesses must note that the platforms provided by these tech giants will eventually serve a larger world market in unprecedented ways than they do now. Therefore, identifying profitable pockets of the world market via these platforms is a critical imperative that businesses need to view with a lot of optimism as the playing field is set up to be levelled in the near future.
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