Amazon Taps AT&T to Bring Satellite Broadband to Enterprise Customers

Amazon has partnered with AT&T to offer its satellite broadband service, Amazon Leo, as part of AT&T's managed offerings for enterprise and public sector customers. This marks a significant milestone for Amazon, which is bypassing traditional enterprise sales processes in favor of a shortcut that can quickly put its satellite internet into millions of business accounts.

The deal makes AT&T the first major US telecom to bundle Amazon Leo with its fiber and 5G services, delivered on one bill through AT&T terminals. This partnership escalates the competition against Starlink for carrier partnerships, as Amazon's low-earth-orbit constellation is positioned as a backup and rural coverage solution rather than direct satellite-to-phone service.

According to CEO Andy Jassy, Amazon Leo has close to 400 satellites in orbit, enough to begin initial satellite internet service this year. The partnership with AT&T aims to plug the '2%' of rural traffic that fiber and 5G cannot economically reach, a challenge highlighted by AT&T's CEO John Stankey.