Amazon today announced that it will buy satellite giant GlobalStar to enable its Amazon Leo service to offer direct connectivity to consumer devices. Apple owned 20% of the company.
The deal will allow Apple to purchase its satellite services for iPhone and Apple Watch from Amazon Leo, and the acquisition promises to accelerate innovation and connectivity…
Apple Satellite Services
Apple first added satellite messaging to the iPhone 14 back in 2022. Initially, this was limited to contacting emergency services while outside cellular coverage areas. It was later expanded to offer roadside assistance coverage for mechanical problems as well as messages to family and friends.
So far, Apple has partnered with Globalstar for all of its satellite communications services. However, capacity limitations led some to believe that the company switch to Elon Musk’s Starlink instead at some point.
Amazon’s acquisition of Globalstar
The latest news doesn’t come out of nowhere. A report earlier this month suggested that Amazon was in talks to acquire GlobalStar. However, at the time Apple’s 20% stake in the satellite company was considered to be a complicating factor.
The report said this would require three-way negotiations between Amazon, GlobalStar and Apple. It is now clear that these negotiations were successful. Amazon made the advertisement today.
Amazon.com, Inc. and Globalstar, Inc. announced today that they have signed a definitive merger agreement under which Amazon will acquire Globalstar, allowing Amazon Leo to add direct-to-device (D2D) services to its low-Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. Additionally, Amazon and Apple announced a deal for Amazon Leo to power satellite services for iPhone and Apple Watch1, including Emergency SOS via satellite.
Amazon has paid $11.57 billion for the acquisition.
For now, things will remain unchanged.
With the new Amazon-Apple agreement, Amazon will continue to support iPhone and Apple Watch models that currently use Globalstar’s existing and planned future low-Earth orbit satellite constellations, manufactured by MDA Space, and will collaborate with Apple on future satellite services using Amazon Leo’s expanded satellite network.
However, Amazon promises that the deal will accelerate innovation and connectivity.
Accelerates innovation and expands connectivity options: By combining Amazon’s low-Earth orbit satellite network with Globalstar’s infrastructure and spectrum assets, the acquisition enables faster deployment of D2D connectivity at scale, reaching areas where terrestrial deployment is delayed, cost-prohibitive, or vulnerable to disruption. It will also mean more reliable mobile data and communications services for consumers, businesses and governments, while setting new benchmarks for innovation and providing customers with greater choice, flexibility and value.
Apple says it hopes to collaborate with Amazon Leo.
“Since its launch more than three years ago, our innovative Emergency SOS satellite safety service has helped save many lives around the world, from a scout troop stranded on a winter hike in British Columbia to a woman who was airlifted to safety in Colorado after her car rolled off a 250-foot cliff,” said Greg Joswiak, Apple’s senior vice president of Worldwide Product Marketing.
“Apple and Amazon have a long, proven track record of working together across Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo. This ensures our users will continue to have access to the vital satellite features they rely on, including Emergency SOS, Messaging, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while they’re off the grid.”
9to5Mac’s opinion
This is pretty big news, and in fact, there is likely to be a more rapid expansion of satellite services available on Apple devices. However, Elon Musk will not be a happy man.
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