Amazon has announced the acquisition of Globalstar for $11.57 billion. The operation, pending regulatory approval, will strengthen its satellite business, advance the offer of satellite connection services and allow it to get closer to Elon Musk’s Starlink.
“There are billions of customers living, traveling and working in places without access to existing networks, and we created Amazon Leo to help bridge that gap,” said Panos Panay, senior vice president of Devices and Services at Amazon. “By combining Globalstar’s proven experience and strong foundation with Amazon’s customer obsession and innovative spirit, customers can expect faster, more reliable service in more places, keeping them connected to the people and things that matter most to them. “We are excited to support Apple users through the Leo D2D system and look forward to collaborating with our mobile network partners to extend coverage to all corners of the planet.”.
Amazon buys Globalstar
Globalstar is a mobile satellite services (MSS) operator, a pioneer in non-geostationary orbit (NGSO) satellites and D2D technology, and a provider of critical and emergency communications to customers around the world. As part of the agreement, Amazon to acquire existing satellite operations, infrastructure and assetsincluding MSS spectrum licenses with global authorizations.
Combining Globalstar’s spectrum and established MSS capabilities with the scale, performance and reach of Amazon Leo will enable Amazon to offer Continuous connectivity to individual, business and government customers worldwidewhether they live or work in remote areas or simply move on and off traditional cellular networks. Globalstar’s existing satellite fleet and its new satellites with expanded capabilities will operate alongside the Amazon Leo broadband system and the direct-to-device (D2D) satellite system that Amazon plans to develop.
In addition to the agreement with Globalstar, Amazon y Apple have signed an agreement to provide satellite connectivity for current and future features of the iPhone and Apple Watch. The agreement should be similar to the one that Apple has with Starlink. Globalstar is already working with Apple to offer satellite service on the iPhone 14 or later, as well as the Apple Watch Ultra 3, allowing users to text emergency services, communicate with friends and family, request roadside assistance, and share their location.
The agreements with Globalstar and Apple They will promote innovation and competition in the space, satellite and telecommunications sectors, and support efforts to close the global digital divide. According to Amazon:
- Accelerate innovation and expand connectivity options.
- Strengthens the resilience of the public and private sectors.
- Boost economic growth and reduce the digital divide.
Amazon Leo Direct-to-Device (D2D)
Starting in 2028, Amazon Leo will deploy its own next-generation D2D satellite system, allowing Amazon to offer more advanced voice, data and messaging services to mobile phones and other cellular devices. Leo’s D2D system will deliver substantially higher spectrum utilization and efficiency than traditional D2D systems, resulting in faster speeds and better performance for customers.
Additionally, it will integrate with Amazon’s first and second generation Leo systems, forming a powerful unified network that combines fixed and mobile satellite services to support a wide range of customers and use cases. Amazon Leo’s entire network will include thousands of advanced low-Earth orbit satellites and will have enough capacity to support hundreds of millions of customer devices around the world.
The battle against Musk’s Starlink
The takeover of Globalstar gives Amazon access to Globalstar’s network of two dozen advanced satellites, boosting the tech giant’s ambitions to compete with SpaceX unit Starlink, which currently has about 10,000 units in orbit. Compared to Starlink, which has its own launchers, Amazon and other companies that intend to provide new satellite Internet solutions, such as the European ones that applied to provide an eventual replacement for the operations of Elon Musk’s firm, do not have them.
Amazon has contracted heavy lift launches with several specialist firms, which should provide sufficient capacity to place the 3,200 satellites planned by the company in low Earth orbit. by 2029. The company currently operates a network of more than 200 satellites and is preparing to launch its satellite internet services later this year. In contrast, Elon Musk’s Starlink, the dominant provider of satellite internet services, already serves more than 9 million users worldwide.
The battle is unequal, but Bezos’ firm intends to position itself as another key player in satellite communication services.
