One of the ways Amazon has been avoiding paying taxes on their billions in revenue is by ploughing their profits into new logistic ventures such as their own warehouses, airlines and shipping lines.
Today Amazon revealed a new money sink project, “Project Kuiper,” which aims to create a worldwide satellite internet network powered by 3,236 satellites.
The network would offer “low-latency, high-speed broadband connectivity to unserved and underserved communities around the world,” a spokesperson told CNBC, presumably allowing them to join Amazon Prime also.
“This is a long-term project that envisions serving tens of millions of people who lack basic access to broadband internet. We look forward to partnering on this initiative with companies that share this common vision.”
One of the partner companies which presumably would be Jeff Bezos’ Blue Origins rocket company, with Amazon now having good reason to subsidize Bezos’s SpaceX competitor. Elon Musk’s SpaceX competitor is, of course, planning a similar network called Starlink, and I expect Amazon’s plans will put some pressure on SpaceX and their always precarious financial plans.