Amazon Acquires Globalstar to Scale Satellite Connectivity and Power Apple Services

Amazon has entered into a definitive merger agreement to acquire Globalstar, Inc., a move that fundamentally transforms the landscape of space-based connectivity. By integrating Globalstar’s existing infrastructure and operational expertise, Amazon aims to accelerate the capabilities of its own satellite network, Amazon Leo, while maintaining a critical partnership with Apple.

Expanding the Reach of Amazon Leo

The acquisition is centered on the integration of Direct-to-Device (D2D) services into the Amazon Leo low Earth orbit (LEO) satellite network. This technology allows satellites to communicate directly with consumer devices without the need for specialized hardware. According to Amazon, this system will help mobile network operators (MNOs) extend voice, text, and data services to users who are currently beyond the reach of terrestrial cellular networks.

Panos Panay, Senior Vice President of Devices & Services at Amazon, stated that the goal is to bridge the divide for billions of customers living or traveling in areas without existing network coverage, ensuring faster and more reliable service.

The Apple Partnership: Continuity in the Clouds

A pivotal component of this deal is the relationship between Amazon and Apple. Globalstar has been the primary partner powering satellite services for the iPhone 14 and later, as well as the Apple Watch Ultra 3. To ensure these services continue uninterrupted, Amazon and Apple have reached an agreement for Amazon Leo to power satellite services for supported iPhone and Apple Watch models.

Users will continue to have access to critical features, including:

• Emergency SOS via satellite: Contacting emergency services from remote areas.
• Messaging: Sending texts to friends and family.
• Roadside Assistance: Requesting help for mechanical problems.

This agreement resolves previous complexities regarding Apple’s 20% stake in Globalstar, which 9to5Mac notes required successful three-way negotiations between Amazon, Globalstar, and Apple.

Strategic Market Impact

The acquisition represents a significant investment in the satellite sector. Reports indicate the deal is valued between $10.8 billion and $11.57 billion. This move positions Amazon as a formidable competitor to other satellite internet providers, such as SpaceX’s Starlink, by combining Globalstar’s radio frequency spectrum and proven expertise with Amazon’s innovation scale.

Key Takeaways

• Acquisition: Amazon is buying Globalstar to add D2D capabilities to Amazon Leo.
• Apple Integration: Amazon Leo will now power satellite features for supported iPhones and Apple Watches.
• Service Expansion: The deal focuses on extending cellular coverage (voice, text, data) beyond terrestrial networks.
• Strategic Goal: To provide reliable, high-speed connectivity globally through partnerships with MNOs.

Frequently Asked Questions

Will my iPhone’s satellite features stop working?

No. Amazon and Apple have agreed that Amazon Leo will continue to power the satellite services currently used by supported iPhone and Apple Watch models.

What is D2D service?

Direct-to-Device (D2D) allows standard mobile devices to connect directly to satellites, extending the reach of cellular services to areas where traditional cell towers aren’t available.

What is Amazon Leo?

Amazon Leo is Amazon’s low Earth orbit satellite network designed to provide high-speed connectivity to underserved areas of the world.