Amazon is making a significant move into the orbital mobile connectivity sector, currently led by Elon Musk's Starlink. The tech giant announced its agreement to purchase satellite provider Globalstar for a substantial $11.57 billion in cash.
This deal, valued at $90 per share, allows Amazon to gain access to Globalstar's satellite operations, infrastructure, and mobile satellite service licenses. This acquisition is set to bolster Amazon's burgeoning satellite initiative, Amazon Leo, by enabling direct-to-device services ahead of its anticipated launch later this year.
The announcement follows Amazon CEO Andy Jassy's recent highlight of Amazon Leo's diverse clientele, which includes major players like Delta Airlines, AT&T, Vodafone, and NASA. Additionally, the company has unveiled a new satellite internet antenna designed for commercial aircraft, promising high-speed connectivity during flights.
Amazon Leo aims to operate with over 3,200 satellites positioned in low-Earth orbit. However, the project has experienced delays, with only about 200 satellites launched to date. To address this, Amazon requested the Federal Communications Commission to extend a deadline requiring approximately 1,600 satellites to be in orbit by July this year.
In contrast, Starlink, which has a significantly larger fleet, operates more than 10,000 satellites and provides internet access across 150 countries for both retail and business users, including those in maritime and aviation sectors.
Globalstar currently operates over 24 satellites in low-Earth orbit and has plans to acquire more than 50 additional satellites. The company has also partnered with SpaceX for the launch of replacement satellites this year.
Alongside this acquisition, Amazon has reached an agreement with Apple to maintain satellite connectivity services for iPhone and Apple Watch users. Globalstar's services include emergency text messaging, roadside assistance requests, and location sharing, available on newer iPhone models in select regions.
Looking ahead, Amazon Leo plans to deploy its own direct-to-device satellite system by 2028, which will integrate with its existing broadband and satellite frameworks. The company envisions creating a network of "thousands of advanced satellites in low-Earth orbit" to support "hundreds of millions of customer endpoints globally."
