> If the math says that AST SpaceMobile is likely to begin encroaching on Starlink then they deny a contract, replace it with the next person in line, and don't bat an eye.
This is where the Netflix/AWS analogy is a good one.
The critical point is: AWS makes more money from people not-Netflix than Amazon Video makes.
Consequently, AWS screwing with Netflix for the benefit of Amazon Video risks the entire not-Netflix AWS customer base, who would no longer consider Amazon as neutral of a party and thus trim their AWS spend.
And these optics last for decades.
Which is why most companies in these scenarios have serious firewalls between those parts of the conglomerate. No sense killing the golden goose because some VP wants a bonus.
If AST (or Amazon Video in the analogy) can compete with Starlink (or Netflix) on even terms, then more power to them. If not? Then that's their problem: rest of the company isn't going to bail them out.
This is inaccurate, Netflix doesn't deliver video via AWS due to the extreme cost of bandwidth on AWS compared to even paid peering, nevermind settlement free peering.
This is where the Netflix/AWS analogy is a good one.
The critical point is: AWS makes more money from people not-Netflix than Amazon Video makes.
Consequently, AWS screwing with Netflix for the benefit of Amazon Video risks the entire not-Netflix AWS customer base, who would no longer consider Amazon as neutral of a party and thus trim their AWS spend.
And these optics last for decades.
Which is why most companies in these scenarios have serious firewalls between those parts of the conglomerate. No sense killing the golden goose because some VP wants a bonus.
If AST (or Amazon Video in the analogy) can compete with Starlink (or Netflix) on even terms, then more power to them. If not? Then that's their problem: rest of the company isn't going to bail them out.