Mid 2026 Satellite Mobile Internet Update: New Glenn Explosion Derails Amazon Leo & AST SpaceMobile, SpaceX Begins Starlink V3 Testing

Blue Origin’s New Glenn rocket suffered a catastrophic explosion during an engine test at Florida’s launch pad last week, causing extensive damage and grounding the rocket indefinitely. The incident threatens to delay the deployment of Amazon’s Leo satellite constellation and AST SpaceMobile’s direct-to-cell broadband network, both of which rely on New Glenn for launches. Blue Origin CEO David Limp has set an aggressive target to return to flight by the end of 2026, though industry analysts predict delays of 12–18 months. The explosion also raises concerns about ULA’s Vulcan rocket, which uses the same engine as New Glenn. Vulcan is already grounded for unrelated issues, and further delays could arise if the investigation uncovers design flaws. Amazon Leo and AST SpaceMobile, backed by major telecom investors like Verizon and AT&T, now face significant setbacks in challenging SpaceX’s Starlink monopoly. SpaceX, meanwhile, resumed Starship testing, marking the first flight to include Starlink V3 components. The mission was partially successful, but the Super Heavy booster failed to return properly, prompting an FAA investigation. Despite setbacks, SpaceX remains the only major player with an operational satellite internet service, widening its lead in the sector. Amazon Leo and AST SpaceMobile had positioned themselves as key competitors to Starlink, with Amazon also acquiring Globalstar to expand into direct-to-cell satellite services. The New Glenn explosion disrupts these plans, leaving their commercial rollouts uncertain. Blue Origin’s recovery timeline will determine how quickly the industry can regain momentum in deploying next-generation satellite networks.