Amazon Validates 'Very Large' Demand for Phone-To-Space Connectivity

Amazon's CEO Andy Jassy highlighted 'very large' demand for direct-to-device connectivity in its earnings call, citing consumers', enterprises', and governments' expectations for uninterrupted global connectivity beyond traditional networks.

'Even in metropolitan areas, we all hit certain parts of the highway or certain roads where you can't get connectivity or you're hiking, you're skiing. And so increasingly, we see very large demand for consumers to have direct-to-device,' Jassy said.

AST SpaceMobile (ASTS), Rocket Lab USA (RKLB), Firefly Aerospace (FLY), and Intuitive Machines (LUNR) saw their shares climb overnight after Amazon's statement, with ASTS and FLY rising 2% each and RKLB and LUNR gaining 1%.

AT&T CEO John Stankey said the U.S. satellite-to-phone market is likely to support multiple providers rather than a single dominant operator, expecting competing platforms from SpaceX and Amazon to develop comparable capabilities over time.