Amazon is making a massive leap into the space industry with its acquisition of satellite service provider Globalstar. The deal, reportedly valued at $11.6 billion, is a strategic move designed to bolster “Project Kuiper” (now referred to as Amazon Leo) and position the e-commerce giant as a formidable competitor in the rapidly growing satellite-to-device market.
Expanding the Reach of Amazon Leo
Amazon’s satellite initiative, Leo (standing for Low Earth Orbit), aims to provide broadband and direct-to-cell connectivity globally. By acquiring Globalstar, Amazon gains immediate access to a sophisticated network of satellite operations, infrastructure, and assets.
Currently, Globalstar operates 24 satellites and is on track to expand that fleet to 32 by the end of this year. These satellites are vital for providing emergency communications to users worldwide. For Amazon, this acquisition serves as a bridge to help its own constellation reach the scale necessary to compete with established players.
The Apple Connection: A Critical Infrastructure Shift
One of the most significant aspects of this deal involves Apple. Globalstar currently provides the essential satellite connectivity used by the iPhone (14 and newer) and the Apple Watch Ultra for:
– Emergency SOS services
– Roadside assistance requests
– Location sharing and messaging during natural disasters
Interestingly, Apple recently acquired a 20% stake in Globalstar in November 2024. Following Amazon’s announcement, the company stated that its Leo project will eventually power these same satellite services for iPhone and Apple Watch users. This creates a complex web of interdependence between the world’s largest tech companies as they vie for control over the “space-to-device” ecosystem.
The Race Against Starlink
This acquisition is a clear signal of Amazon’s intent to catch up with SpaceX’s Starlink. Currently, Starlink is the dominant force in the sector, boasting a massive constellation of over 10,000 satellites that provide internet to smartphones, vehicles, and even household appliances.
However, Amazon faces significant hurdles in its pursuit:
– Deployment Delays: While Amazon aims to launch broadband services by early 2028, CEO Andy Jassy recently noted that Wi-Fi services for businesses and governments may not arrive until mid-2026.
– Regulatory Pressure: The FCC requires Amazon to have 1,600 satellites in orbit by July. Currently, Amazon has only 250 in orbit and is awaiting a decision on a request for an extension.
– Technical Efficiency: Amazon claims that its Leo system will offer “substantially higher spectrum use and efficiency” than older direct-to-cell technologies, a key sellingpoint for future commercial partners.
Future Commercial Prospects
Despite the current delays, the demand for satellite-based connectivity is surging. Amazon has already secured partnerships with major airlines, including Delta Air Lines and JetBlue, which intend to use Leo for in-flight passenger connectivity.
Panos Panay, Amazon’s Senior VP of Devices and Services, emphasized that the Globalstar deal is about bridging the digital divide, aiming to bring internet access to the “billions of customers” who remain outside the reach of traditional cellular networks.
The transaction is expected to close in 2027, subject to regulatory approval.
Conclusion
By acquiring Globalstar, Amazon is bypassing years of infrastructure development to directly challenge SpaceX’s dominance in orbit. This move integrates Amazon into the critical emergency communication fabric used by Apple, setting the stage for a high-stakes battle over the future of global connectivity.
