By David Shepardson
Oct 27 (Reuters) - The Federal Communications Commission said Tuesday it has approved Amazon Leo’s $11.5 billion deal to acquire Globalstar as the retail giant's satellite arm aims to build a satellite-based communications network to take on Elon Musk's SpaceX Starlink unit.
Amazon Leo has launched more than 300 satellites since April 2025 and aims to deploy about 3,200 satellites in Earth's low orbit by 2029. Through the deal, Amazon adds Globalstar's two dozen satellites to its
existing network of more than 200 and its mobile-satellite spectrum. Amazon, which has committed to investing more than $10 billion in Leo, is preparing to roll out its commercial satellite services by the end of 2026, the FCC said.
The FCC said the companies’ assets will boost Amazon Leo’s entry into the direct-to-device market and allow the satellite-operator to offer fixed and mobile services.
"The FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country," FCC Chair Brendan Carr said.
Direct-to-device satellite technology allows smartphones and other devices to connect directly to satellites.
Tech companies are pouring billions of dollars into capturing the lucrative market for satellite-based connectivity as they race to complete with Starlink's network of more than 11,000 satellites.
The FCC will vote Thursday to advance a new auction of wireless spectrum to boost "direct-to-device" services.
Globalstar currently powers satellite-based safety features such as Emergency SOS and Find My for Apple's iPhone and Apple Watch users. Amazon said earlier that it has signed an agreement with Apple to continue providing those services.
Apple invested about $1.5 billion in Globalstar in 2024 to fund the expansion of its iPhone communication services, in a deal that also gave the tech giant a 20% equity in Globalstar. Apple accounted for about 63% of Globalstar revenue last year and Amazon plans to acquire Apple's stake, the FCC said.
Globalstar said late last year that a new, Apple-backed network under development would expand its footprint to 54 satellites, including a small number of backups, from the two dozen currently.
(Reporting by David Shepardson, Editing by Nick Zieminski)
