Amazon eyes Globalstar

Amazon said on April 14 it will buy Globalstar for about $11.57 billion, turning its satellite project into a direct rival to SpaceX’s Starlink in phone connectivity. (aboutamazon.com) The deal gives Amazon Globalstar’s satellites, radio spectrum, and operating team so Amazon Leo can add direct-to-device service, which links ordinary phones to satellites outside cellular coverage. Amazon also said Leo will power satellite features on supported iPhone and Apple Watch models under a new agreement with Apple. (aboutamazon.com) Direct-to-device service is the next fight in low Earth orbit, where satellites act like towers in space for texting, emergency messages, and limited data when ground networks disappear. Starlink already has a direct-to-cell partnership with T-Mobile, while Apple has used Globalstar’s network for iPhone emergency and messaging features since 2022. (aboutamazon.com) (satellitetoday.com) Globalstar was already tied closely to Apple before Amazon arrived. In November 2024, Apple agreed to provide up to $1.1 billion in cash and invest $400 million for a 20% stake in a Globalstar affiliate that would own a new satellite constellation for expanded iPhone services. (satellitetoday.com) (cnbc.com) Globalstar’s own filings show how important that relationship became. The company said its 2024 revenue rose 12% to a record $250.3 million, and it received $0.9 billion of the $1.7 billion tied to its updated services agreements. (businesswire.com) (sec.gov) Amazon has been building its own network for years under Project Kuiper, now branded Amazon Leo. Amazon says the system is designed around a constellation of more than 3,000 satellites in low Earth orbit connected by optical links and ground stations, with service for its first customers planned for 2026. (aboutamazon.com) (highspeedinternet.com) Buying Globalstar lets Amazon skip part of the slowest work in satellite telecom: getting spectrum rights and a phone-ready service model. Reuters reported on April 13 that Amazon was in advanced talks before Amazon confirmed the transaction a day later. (usnews.com) (aboutamazon.com) The purchase also sharpens the contest with Starlink, which has a much larger satellite fleet and a head start in consumer service. Amazon is betting that Globalstar’s spectrum, Apple’s installed base, and Leo’s planned broadband network can close part of that gap faster than building everything from scratch. (spacenews.com) (aboutamazon.com) For Globalstar, the sale ends years as a smaller satellite operator with one giant customer and a narrow but valuable slice of wireless spectrum. For Amazon, it turns a long-running space project into a much more immediate test against Starlink on the phones people already carry. (sec.gov) (aboutamazon.com)