Amazon and AT&T will partner to deliver satellite internet to business customers, with AT&T set to become the first US telecom provider to offer the service.
The arrangement will deliver satellite internet to enterprise clients specifically, rather than individual consumers.
How the deal is structured
The arrangement routes Amazon's low-Earth-orbit connectivity, known as Amazon Leo, into AT&T's existing product range.
That gives Amazon distribution through an established wireless operator, while giving AT&T an alternative to SpaceX's Starlink for remote or underserved business sites.
Amazon and AT&T are positioning Leo as a carrier-facing service aimed at other businesses, rather than a direct push into the consumer market.
A young rival to Starlink
MarketWatch reported that the deal was struck while Amazon's satellite effort remains nascent.
Amazon has far fewer satellites in orbit than SpaceX, and its Leo constellation remains in the early stages of development.
AT&T told MarketWatch it was confident in Amazon's low-Earth-orbit services despite the constellation's early stage.
What happens next
Both companies are using the partnership to accelerate commercial availability of satellite-backed connectivity for business customers.
Amazon says it will continue expanding both its satellite constellation and its carrier partnerships as the service develops.
Whether that expansion can close the gap with Starlink's head start is likely to depend on how quickly Amazon can get more satellites into orbit.
