Giant BlueBird 7 mobile phone satellite will be deorbited after faulty Blue Origin launch

Blue Origin, the space launch company founded by Jeff Bezos, just achieved a successful recovery of its first reused orbital-class rocket, but the payload it placed into space has ended up in the wrong location.

The New Glenn rocket lifted off on its third-ever mission on Sunday (April 19), and the 7:25 a.m. EDT (1125 GMT) liftoff from Launch Complex 36 at Cape Canaveral Space Force Station in Florida initially went as planned. So did the propulsive recovery of the rocket's first stage — called "Never Tell Me The Odds" and being reused for the first time — when it touched down on Blue Origin's "Jacklyn" droneship in the Atlantic Ocean about six minutes later.

Indeed, the company's updates were celebratory until 9:40 a.m. EDT (1340 GMT), when Blue Origin acknowledged a problem on social media.

"We have confirmed payload separation. AST SpaceMobile has confirmed the satellite has powered on. The payload was placed into an off-nominal orbit. We are currently assessing and will update when we have more detailed information," the company wrote.

Later on Sunday, AST SpaceMobile issued its own update, which delivered some bad news.

"While the satellite separated from the launch vehicle and powered on, the altitude is too low to sustain operations with its on-board thruster technology and will [be] de-orbited," AST SpaceMobile wrote. "The cost of the satellite is expected to be recovered under the company’s insurance policy."

AST SpaceMobile's BlueBird 7 satellite was intended to join the largest communications array ever deployed in low Earth orbit to expand the network's ability to provide space based cellular broadband to consumer smartphones. BlueBird 7 is one of the largest satellites in space, with an antenna that spans 2,400 square feet (223 square meters).

It's unclear at the moment what effect the BlueBird 7 issue will have on future New Glenn launches, including Blue Origin's planned uncrewed moon landing later this year.

The company is using its prototype MK1 "Endurance" lander as a test vehicle and precursor to its much larger MK2, which will support NASA's Artemis astronaut missions to the lunar south pole.

Editor's note: This story was updated at 3:50 p.m. ET on April 19 with the news that BlueBird 7 will be deorbited.