Blue Origin successfully launched its third New Glenn rocket on Sunday, marking another milestone as the company managed to re-fly and recover a previously used first-stage booster.

However, the mission faced a major setback when the rocket’s second stage failed to place its payload into the correct orbit. The payload, BlueBird 7, is a direct-to-cellphone communication satellite developed by AST SpaceMobile, a Texas-based company.

According to AST SpaceMobile, the satellite was deployed into a lower-than-planned orbit. Although the satellite successfully separated from the rocket and powered on, its onboard propulsion system is not capable of correcting the orbit to the required altitude.

The company confirmed that the satellite cannot continue operations under these conditions. As a result, BlueBird 7 will eventually deorbit and burn up in the Earth’s atmosphere.

While the successful recovery of the rocket’s first stage is a positive step for Blue Origin’s reusable launch technology, the failure to achieve the correct orbit highlights ongoing challenges in ensuring mission accuracy.