Amazon.com Inc.’s Project Kuiper unit, which plans to launch thousands of internet satellites into low Earth orbit, is teaming up with Verizon Communications Inc. to deliver networking services to consumers and enterprises.

Amazon is one of several companies building satellite-powered internet networks. SpaceX Corp. is the online retail and cloud computing giant’s most prominent competitor in this emerging market.

Both Amazon and SpaceX are building their internet networks in low Earth orbit rather than the higher altitudes at which traditional telecommunications satellites are deployed. Satellites in low Earth orbit are closer to the surface, meaning that data can travel back and forth faster with less latency. Another benefit of operating at lower altitudes is that launch expenses can be reduced.

Amazon’s new collaboration with Verizon, which the companies announced today, will seek to harness the technology being developed by Project Kuiper in two main ways. 

First, the companies will work to expand internet coverage for rural and remote communities in the U.S. As part of the effort, Project Kuiper will deliver “cellular backhaul solutions” for Verizon’s LTE networks, as well as the new 5G infrastructure that the carrier is currently rolling out. The cellular backhaul is the infrastructure that connects a carrier’s cell towers with the centralized core network it uses to orchestrate data traffic.

The companies haven’t shared many technical details about the effort. However, they did specify today that the initiative will involve “antenna development already in progress from the Project Kuiper team.” Additionally, Amazon and Verizon stated that they’re currently working to “define technical requirements to help extend fixed wireless coverage to rural and remote communities across the United States.”

“There are billions of people without reliable broadband access, and no single company will close the digital divide on its own,“ Amazon Chief Executive Officer Andy Jassy said in a statement. “Verizon is a leader in wireless technology and infrastructure, and we’re proud to be working together to explore bringing fast, reliable broadband to the customers and communities who need it most.”

The second major focus of the collaboration will be to explore the possibility of developing joint connectivity services for enterprises. Amazon and Verizon are targeting organizations in the agriculture, energy, manufacturing and transportation sectors, among other areas. The vision is to combine Project Kuiper’s technology with the wireless, private networking and edge compute solutions offered by Verizon.

Amazon and Verizon already provide joint product offerings for the enterprise market. Amazon’s cloud computing unit, Amazon Web Services Inc., and Verizon offer a solution that enables companies to set up private cloud environments with dedicated 5G networks at locations such as factories. AWS has also partnered with the carrier to help deliver its AWS Wavelength service, which enables organizations to host their applications on infrastructure located near or at major metropolitan areas. 

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