Australia’s state-owned internet provider, NBN Co, has chosen Amazon’s unproven Project Kuiper satellite service to connect remote users who are beyond the reach of its terrestrial network, bypassing Elon Musk’s Starlink, despite its established presence. The financial details of the agreement were not disclosed, but it aims to deliver high-speed internet to approximately 300,000 homes and businesses that NBN’s land-based infrastructure does not cover. Starting next year, Amazon’s low-Earth orbit (LEO) satellites will begin to replace two aging government-owned satellites, set for retirement in 2032, NBN and Amazon announced in a joint statement on Tuesday.

“Although Amazon Kuiper has yet to commence services either in Australia or globally, they are reportedly investing around $15 billion into this initiative,” said Gavin Williams, NBN’s Chief Development Officer for regional and remote services. “We are fully confident that Kuiper will deliver on their promises,” he added. While NBN stated the selection followed a thorough procurement process, it did not explain why Amazon’s service was chosen over Starlink, which already serves more than 250,000 Australian customers, making it the largest satellite internet provider globally.

Telecom analyst Paul Budde suggested the decision might have been driven by concerns over sovereign risks associated with entrusting critical national infrastructure to a company tied to “an unpredictable America.” Budde noted that full reliance on Starlink would likely be viewed unfavorably, adding that if political tensions arose, figures like former U.S. President Donald Trump could exploit platforms like Starlink and Kuiper for leverage. Starlink did not immediately respond to requests for comment. Despite this, Australia’s largest telecom providers still sell Starlink's residential equipment, and government entities, including the Australian Electoral Commission, maintain contracts with Starlink.

Since launching in 2019, Starlink, a division of Musk’s SpaceX, has deployed about 8,000 fast-orbiting satellites. In contrast, Amazon’s Project Kuiper has only 78 satellites in orbit, following its first launch in April. However, NBN and Amazon confirmed that Kuiper plans to eventually expand to over 3,200 satellites, which will interconnect via optical links and communicate with ground-based antennas. Williams emphasized that managing essential infrastructure requires navigating regulatory, legal, technical, and commercial complexities, all of which were considered in their selection process.