Throwing down the orbital gauntlet to rivals such as Starlink, Amazon has entered into a definitive agreement to acquire the Globalstar low Earth orbit (LEO) satellite business to add direct-to-device (D2D) services to its Leo low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks.
Globalstar is a mobile satellite services (MSS) operator which claims to be a pioneer in non-geostationary orbit (NGSO) satellites and D2D technology and a global provider of critical and emergency communications.
The company’s connectivity ecosystem includes a software-defined, purpose-built private wireless network platform, coupled with Globalstar Band 53 in XCOM RAN and GPS messengers Saved by Spot for safety and personal communication for business and enterprise applications. The satellite’s services support applications that track and protect assets, enable automation and enhance operational efficiency.
As part of the acquisition agreement, Amazon will pay around $4.6bn in cash and issue stock currently worth around $6.2bn to control Globalstar’s existing satellite operations, infrastructure and assets including mobile satellite service (MSS) Band 53/n53 spectrum licences with global authorisations.
Amazon sees the new capabilities as being part of its long-term vision for space-based connectivity. It also plans to work with mobile network operators (MNOs) and additional partners to deliver on its stated vision. Globalstar’s existing satellite fleet and its new satellites with expanded capabilities will operate alongside the Amazon Leo broadband system and Amazon’s planned direct-to-device satellite system.
Ultimately, by being able to combine Globalstar’s spectrum and established MSS capabilities with Leo’s existing scale, performance and reach, Amazon believes it can deliver continuous connectivity for consumer, enterprise and government customers.
Beginning in 2028, Amazon Leo will deploy its own next-generation D2D satellite system, allowing Amazon to deliver voice, data and messaging services to mobile phones and other cellular devices. It claims its Leo D2D system will offer substantially higher spectrum use and efficiency than legacy direct-to-cell systems, which translates into faster speeds and better performance for customers.
One of Globalstar’s key customers is Apple, and it currently partners with the tech behemoth to power satellite service on iPhone 14 or later, as well as Apple Watch Ultra 3, allowing users to text emergency services, message friends and family, request roadside assistance and share their location.
With the new agreement, Amazon will continue to support iPhone and Apple Watch models currently using Globalstar’s existing and planned upcoming LEO satellite constellations, being manufactured by MDA Space, and collaborate with Apple on future satellite services using Amazon Leo’s expanded satellite network.
Panos Panay, Amazon senior vice-president of devices and services, said that by combining Globalstar’s foundation with Amazon’s customer-focus and “innovation”, customers can expect faster, more reliable service in more places.
“There are billions of customers out there living, traveling and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide … keeping them connected to the people and things that matter most,” said Panay. “We’re excited to support Apple users through the Leo D2D system and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”
Globalstar CEO Paul Jacobs added: “We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime.
“For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence and development of globally harmonised spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”
The deal has attracted general approval from the mobile industry. Global mobile trade association the GSMA regards the deal as a “strong signal” of the desire for infrastructure and spectrum scale in satellite, and in the direct-to-device market specifically, also furthering the recent wave of consolidation in the sector such as the Starlink/Echostar and Omnispace/Lynk deals.
GSMA’s head of research and consulting Tim Hatt said that market momentum was coming from the growing mainstream demand for satellite services that prioritise coverage and resilience, starting with low‑bandwidth use cases such as messaging and safety.
“In the near term, the value proposition is simple: coverage where terrestrial networks can’t reach,” he said. “Amazon’s deeper move into LEO reinforces that satellites are now being treated as core connectivity infrastructure and the centre of gravity is clearly shifting toward players with the capital and regulatory muscle to scale.
“The purchase price of $11.6bn implies a steeper valuation on the spectrum compared to Starlink’s purchase of Echostar’s holdings, which speaks to Amazon’s desire to move to market fast and bolster the available capacity for its initial planned fleet of around 3,200 satellites.
“Amazon has a number of options for commercialising satellite services, which could include bundling direct to device with Prime, broadband, coverage partnerships with telcos and connectivity support for its logistics operations. Whatever that pathway, the centre of gravity is clearly shifting toward larger constellation providers with infrastructure scale.”
