New Delhi: Amazon has announced a massive $11.57 billion deal to acquire Globalstar, marking a major step in its satellite internet ambitions. The move
makes the company a direct competitor to SpaceX’s Starlink, which already dominates the international low Earth orbit (LEO) satellite market. It is anticipated that the acquisition will speed up Amazon in its plans to develop connectivity outside of the conventional telecom networks.
There are also huge implications of the deal to Apple users. Globalstar supports emergency capabilities on iPhones and Apple Watches using satellites, and Amazon has assured users that the services will not be affected. Company statements cite that Apple will continue to be a major partner as satellite connectivity emerges as an important feature on consumer devices.
Amazon’s satellite expansion targets Starlink dominance
Amazon has continuously been developing its satellite network as part of its larger LEO programme to provide high-speed internet access straight out of space. Already the company has put in place more than 200 satellites and intends to expand to approximately 3,200 satellites by 2029. A sizeable portion of this constellation must be operational by mid-2026, which is a regulatory deadline, making deployment more urgent.
Through the purchase of Globalstar, Amazon will have direct access to an established set of low Earth orbit satellites. This enhances its direct-to-device strategy, which means that smartphones and other devices are able to connect to satellites without depending on terrestrial towers. According to industry observers, this has the potential to drastically enhance connectivity in remote and underserved areas.
Nonetheless, the level of competition is high. Starlink by SpaceX remains the leader with an approximated 10,000 satellites in space and millions of users around the globe. According to the experts, the two-fold approach of Amazon, which consists of constructing its own constellation and combining it with Globalstar infrastructure, may assist it in reducing that gap quicker.
Apple partnership secures iPhone satellite features
Apple has been an important factor in the development of Globalstar. The company spent about $1.5 billion to fund satellite services that enable features such as Emergency SOS, location sharing and roadside assistance on the supported devices. They can now be found on iPhone 14 and other models, as well as certain Apple Watch models.
Amazon has assured that these services will not be discontinued following the acquisition. On the official disclosure, the transition will be user-friendly, and there will not be a likely interruption of safety features. Under the new ownership structure, Apple will still be dependent on the network provided by Globalstar.
The deal also provides the financial conditions of Globalstar shareholders who are free to choose between cash and Amazon shares in the deal. The transaction is likely to be finalised in 2027, pending regulatory clearances and implementation.
What this means for the satellite internet race
The purchase is an indication that Amazon is making a serious move into the fast-expanding satellite communications industry. With increasing demand to have access to reliable connectivity in rural and hard-to-reach regions, companies are scrambling to create scalable space-based networks.
Having Globalstar as a component of its ecosystem, Amazon can more easily grow its direct-to-device offerings and enhance collaborations with device manufacturers and telecommunications companies. In the meantime, Apple users are set to enjoy further enhancements in satellite-powered functionalities as the technology advances.
The fight between Amazon and Starlink will only escalate, and the results may redefine the way the world remains connected, particularly in places where traditional networks fail.
