Amazon Purchases Globalstar; Apple to Use Amazon's Low Earth Orbit Satellite Services

Amazon Purchases Globalstar; Apple to Use Amazon’s Low Earth Orbit Satellite Services

2 Min Read

Amazon has reported its takeover of the satellite firm GlobalStar, a strategic step intended to bolster its Amazon Leo service and facilitate direct connectivity to consumer devices. This acquisition follows Apple’s previous 20% investment in GlobalStar, which will now rely on Amazon Leo for its satellite services for the iPhone and Apple Watch. The agreement is anticipated to drive innovation and enhance connectivity for users.

### Apple Satellite Services

Apple debuted satellite messaging features with the iPhone 14 in 2022, initially enabling users to reach emergency services outside of cellular networks. This capability has since evolved to encompass roadside assistance and communication with family and friends. Until now, Apple has been in collaboration with GlobalStar for its satellite communications; however, limitations in capacity induced speculation regarding a possible transition to Elon Musk’s Starlink.

### Amazon’s Acquisition of GlobalStar

The acquisition was expected, with earlier reports suggesting that Amazon was negotiating to purchase GlobalStar. The involvement of Apple’s stake in the firm complicated the talks, requiring a three-way negotiation between Amazon, GlobalStar, and Apple. Ultimately, these discussions led to a final merger agreement, with Amazon acquiring GlobalStar for $11.57 billion.

The merger will allow Amazon Leo to enhance its low Earth orbit satellite network, introducing direct-to-device (D2D) services and extending cellular coverage beyond conventional networks. Moreover, Amazon and Apple have reached an understanding for Amazon Leo to provide satellite services for Apple devices, which includes Emergency SOS via satellite.

### Future Collaboration

While normal operations will persist for the moment, Amazon assures that this acquisition will foster accelerated innovation in satellite connectivity. By merging Amazon’s satellite network with GlobalStar’s infrastructure, the collaboration aims to enable faster deployment of D2D connectivity, particularly in regions where traditional deployment proves challenging.

Apple has conveyed excitement about partnering with Amazon Leo, highlighting the significance of satellite features such as Emergency SOS, Messages, Find My, and Roadside Assistance. This collaboration is projected to improve safety and connectivity for users, especially in remote locations.

### Conclusion

Amazon’s acquisition of GlobalStar represents a crucial shift in the satellite communications arena, especially for Apple users. As the partnership develops, it is poised to yield quicker expansion and enhanced services, positioning both entities at the vanguard of satellite technology.

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