Amazon will acquire Globalstar for $11.57 billion, a decisive move to expand its Leo satellite internet ambitions and enter the direct-to-device (D2D) connectivity market. This acquisition directly challenges SpaceX's Starlink, which is also rapidly expanding its D2D capabilities.
The deal notably includes an agreement for Leo to continue powering satellite services for Apple's iPhones and Apple Watches, including critical Emergency SOS features.
While Globalstar is not a household name, its technology powers Apple's Emergency SOS feature for recent iPhone and Apple Watch models, according to Engadget. Amazon’s Project Kuiper, internally known as Leo for its satellite internet service, aims to deploy thousands of low Earth orbit (LEO) satellites.
The Globalstar acquisition grants Amazon immediate control over its existing satellite constellation and mobile satellite services (MSS) spectrum, vital for expanding its space-based footprint.
Amazon Acquires Globalstar, Bolstering Leo
The $11.57 billion acquisition propels Amazon into the direct-to-device (D2D) connectivity arena. This growing market allows mobile devices to connect directly to satellites, bypassing traditional cellular towers. The integration of Globalstar’s assets significantly accelerates Amazon's ability to offer services like extended cellular coverage in remote areas.This move positions Amazon as a direct competitor to other satellite internet providers, particularly Starlink, which has been aggressively pursuing D2D capabilities. Amazon aims to leverage Globalstar's infrastructure and licensed spectrum to establish a robust LEO network. The complete Amazon Leo network will include thousands of advanced satellites, designed to support hundreds of millions of customer endpoints globally.
Regulatory Hurdles and Apple's Continued Role
The Globalstar deal is slated to close in 2027, with Amazon's D2D services not expected to launch until 2028, as reported by SpaceNews. This timeline highlights the complex regulatory and logistical challenges involved. One significant hurdle is an impending FCC deadline: Amazon must deploy 1,600 satellites by July 2026 to meet its license requirements. The company anticipates having only around 700 satellites in orbit by that date, necessitating an extension from the FCC, per Engadget.Despite Apple's prior $1.5 billion investment in Globalstar, which gave it a 20% stake, Amazon and Apple have secured a new agreement. This ensures Leo will continue to support current and future iPhone and Apple Watch satellite features. An Amazon spokesperson, as quoted by The Verge, stated that the companies "signed an agreement to provide satellite connectivity for current and future iPhone and Apple Watch features." This collaboration extends to developing future satellite services using Amazon Leo’s expanded network.
This continued partnership provides a crucial validation for Amazon's Leo project and secures a long-term revenue stream through Apple's widely adopted devices. Amazon's entry into the D2D market signals intensified competition and accelerates innovation in global connectivity, promising a future where ubiquitous device access is standard.
