Amazon is acquiring satellite communications provider Globalstar in an $11.6 billion deal. This acquisition also includes taking over Apple's 20% stake in the satellite internet company, a holding the iPhone maker secured through a $400 million investment in 2024. The move positions Amazon more directly against Elon Musk-led SpaceX in the growing satellite-to-phone connectivity market.
FCC Filing Reveals Amazon's Plans
In a filing submitted to the US Federal Communications Commission (FCC), Amazon said the acquisition would help it rapidly deploy a "next-generation D2D [direct-to-device] satellite constellation" capable of supporting voice, text, and data connectivity on smartphones and IoT devices without requiring additional specialized hardware.
Amazon's Subsidiary and Expansion Plans
As part of the deal, Amazon is creating a subsidiary called "Grapefruit Acquisition Sub II" to complete the merger with Globalstar. The company said it will continue supporting Globalstar's existing satellite systems while also developing a broader direct-to-device network. Amazon's FCC filing stated: "Following the merger, Amazon will rapidly deploy a next-generation D2D satellite constellation to enhance Globalstar's existing and planned MSS systems."
The company also confirmed that it plans to maintain Globalstar's planned C-3 constellation, a 48-satellite network originally intended to improve satellite connectivity for Apple devices, including the iPhone and Apple Watch. At the same time, Amazon signaled plans to go beyond Apple-focused connectivity. "The new Amazon Leo D2D satellites will augment Globalstar's existing and planned services by enabling features that Globalstar cannot offer today, including robust voice, text, and data connectivity to mobile phones and IoT devices that comply with 3GPP NTN standards with no additional specialized equipment," the filing added.
Apple's Partnership and Amazon's Commitment
Apple first partnered with Globalstar to support emergency satellite connectivity features on iPhones. Under that agreement, Apple invested roughly $1 billion into the satellite company and secured 400,000 Class B shares worth around $400 million. Amazon said it will continue supporting Apple's existing satellite services following the acquisition. However, the company also stated that its long-term strategy is to serve "smartphones and other mobile devices across multiple carriers and vendors," rather than focusing on a single ecosystem.
Intensifying Competition with SpaceX
The acquisition intensifies competition with SpaceX, whose Starlink Mobile network is already expanding beyond emergency messaging into mobile data services, video calling, and broader direct-to-phone connectivity. Amazon also indirectly referenced current limitations in mobile satellite systems in its filing. "Current MSS offerings frequently require a clear view of the sky because signal strength is insufficient to penetrate foliage, buildings, or adverse weather. Amazon's satellites will provide better coverage, higher capacity, quicker connection times, and improved signal quality in many locations and conditions where today's services do not reach," the company added.
The Direct-to-Device Market
The direct-to-device market has become increasingly competitive for satellite companies as telecom operators seek alternatives to cover remote and rural regions. Unlike traditional satellite internet systems that require dish hardware, D2D services aim to connect directly to regular smartphones. Amazon said its acquisition of Globalstar would give it access to valuable L-band and S-band mobile-satellite spectrum used by Globalstar's systems. The company also disclosed that it has developed a "specialty phased-array antenna technology designed specifically for global D2D services."
Future Outlook
It remains unclear when Amazon's upgraded services will launch or what the pricing models will be. The company is also separately preparing to launch its delayed Amazon Leo broadband satellite service, which is expected to compete more directly with Starlink's home internet offerings.
