Blue Origin Unveils TeraWave Satellite Internet Service to Challenge Starlink

Jeff Bezos’s Blue Origin has formally announced its entry into the satellite internet market through the launch of the TeraWave service, designed as a competitor to Elon Musk’s SpaceX-operated Starlink. This new initiative marks Blue Origin's strategic expansion into space-based broadband, focusing on critical communications for enterprise-level clients, government, and data center operators. The company’s official announcement, made public on a Wednesday, outlines an ambitious constellation comprising 5,408 satellites in low Earth orbit (LEO) and medium Earth orbit (MEO). Deployment of these satellites is scheduled to commence in the fourth quarter of 2027, according to Blue Origin. TeraWave aims to provide robust, dependable connectivity to its targeted sectors. The constellation includes 128 satellites positioned in MEO, promising data transmission speeds up to 6 terabits per second (TBPS). Meanwhile, the remaining 5,280 satellites situated in LEO are expected to deliver speeds reaching 144 gigabits per second (GBPS). This architecture is designed to accommodate enterprise demands requiring high-speed, low-latency internet services vital for critical operations. In response to Blue Origin’s announcement, SpaceX CEO Elon Musk addressed the development on social media platform X. Musk expressed confidence that Starlink’s technology will maintain a competitive edge regarding data throughput, emphasizing that Starlink’s space-to-ground laser communications will surpass the speeds touted by TeraWave. This announcement comes amid ongoing discourse surrounding Starlink’s expansion and commercial deals. Notably, Starlink has recently been at the center of a public disagreement with Ryanair Holdings PLC, whose CEO Michael O’Leary expressed reservations about installing Starlink technology on aircraft, citing concerns over additional fuel consumption and installation expenses. Starlink’s vice president of engineering, Michael Nicolls, provided data indicating that, relative to existing onboard Wi-Fi solutions, Starlink hardware contributes approximately a 0.3% increase in fuel burn on flights. Contrasting this, Qatar Airways has publicly committed to integrating Starlink Wi-Fi systems on its Boeing 787-800 Dreamliner fleet and has announced plans to fit the entire Airbus A350 fleet with the service, signaling growing airline acceptance of satellite broadband solutions. Separately, the rivalry between Bezos and Musk encompasses multiple technology frontiers. Last year, Musk labeled Bezos a "copycat" upon the unveiling of Blue Origin’s Project Prometheus, an initiative aimed at developing specialized artificial intelligence tools for sectors including automotive, space exploration, robotics, and scientific research. This venture is positioned as a competitor to Musk’s own xAI endeavor. Beyond space and AI, Bezos also supports Slate Auto, a startup working on affordable electric pickup trucks. These moves further entrench the competition between Bezos and Musk across various high-tech industries. The introduction of TeraWave thus intensifies the contest in space-based internet services, underpinning a broader strategic effort by Blue Origin to carve out a foothold in an industry where SpaceX has been a pioneer and dominant player. With a large satellite network planned, and high-speed connectivity targets set, TeraWave’s entry could reshape the market dynamics of global satellite internet offerings starting in late 2027.