Jeff Bezos’ space venture, Blue Origin, successfully reused a booster from its New Glenn rocket for the first time on Sunday, marking a technical milestone for the company.

However, the mission fell short of its primary objective after a communications satellite for customer AST SpaceMobile was placed into the wrong orbit.

In a statement issued Sunday afternoon, AST SpaceMobile confirmed that the rocket’s upper stage deployed its BlueBird 7 satellite into an orbit “lower than planned.”

Although the spacecraft successfully separated from the rocket and powered on as expected, the reduced altitude prevents it from sustaining long-term operations.

The company said the orbit is too low to support the satellite’s intended mission and that BlueBird 7 will now need to be de-orbited and allowed to burn up in Earth’s atmosphere.

No injuries or ground risks were reported.

The setback tempers what would have otherwise been a major achievement for Blue Origin, which has been working to establish New Glenn as a competitive heavy-lift launch vehicle in the commercial satellite market. Reusability is central to the company’s strategy to lower launch costs and compete with rivals in the growing space economy.

Neither company immediately disclosed the financial impact of the failed deployment, including potential insurance claims or plans for a replacement launch.