Astra Space Communications has closed a $2 billion Series D funding round to build a 5,000-satellite low Earth orbit internet constellation that will compete directly with SpaceX's Starlink. The round was led by SoftBank Vision Fund and includes strategic investments from Amazon and Samsung.
The company plans to begin satellite launches in Q4 2026, with commercial service starting in late 2027. Unlike Starlink's approach, Astra's constellation will use direct-to-smartphone technology, eliminating the need for ground-based receivers.
Target markets include rural and underserved areas in developing countries where terrestrial broadband infrastructure is lacking. Planned pricing starts at $30 per month for basic service, significantly below Starlink's current $120 monthly fee.
The competitive landscape in satellite internet is intensifying. Amazon's Project Kuiper is also deploying satellites, and traditional telecommunications companies are investing in hybrid terrestrial-satellite networks. The market is projected to reach $50 billion by 2030.
Regulatory approvals for spectrum allocation are the primary remaining challenge. Astra has filed applications with the FCC and ITU, and initial allocations are expected by mid-2026.
