Amazon is making a massive play for the orbital mobile connectivity market, announcing a deal to acquire satellite communications firm Globalstar in a move designed to accelerate its own space-internet ambitions. The acquisition marks a significant escalation in the race to provide global connectivity, positioning the e-commerce giant to challenge the current dominance of Elon Musk’s Starlink.
On Tuesday, Amazon agreed to purchase Globalstar for $11.57 billion in cash, representing a deal price of $90 per share according to TechCrunch. The transaction provides Amazon with immediate access to Globalstar’s entire suite of satellite operations, existing infrastructure and critical mobile satellite services spectrum licenses.
For Amazon, the acquisition is less about starting from scratch and more about “fleshing out” its young satellite venture, Amazon Leo. By integrating Globalstar’s assets, Amazon aims to implement direct-to-device services ahead of its official launch later this year, bridging the gap between traditional cellular networks and satellite-based internet.
The strategic importance of this move cannot be overstated. While Amazon has the capital and the customer base, it has struggled with the sheer physics and regulatory hurdles of deploying a massive constellation. This acquisition allows Amazon to leapfrog several development stages by acquiring established spectrum and operational capabilities.
Closing the Gap with Starlink
The primary target of this expansion is undoubtedly Starlink. Currently, SpaceX’s Starlink operates a massive network of more than 10,000 satellites, providing internet services to retail and business users across approximately 150 countries, including specialized services for the aviation and maritime industries as reported by TechCrunch.
In contrast, Amazon Leo has faced a slower start. While the company intends to eventually operate more than 3,200 satellites in low-Earth orbit (LEO), it has launched only about 200 to date. This lag has created regulatory pressure. Amazon recently had to petition the Federal Communications Commission (FCC) to extend a deadline that required the company to have roughly 1,600 satellites in orbit by July of this year per TechCrunch data.
Globalstar brings a modest but vital constellation of more than 24 satellites in low-Earth orbit and has existing agreements to acquire more than 50 additional satellites. Globalstar already maintains an agreement with SpaceX to launch replacement satellites for its current constellation within the year, ensuring that Amazon’s novel acquisition remains operational during the transition.
The Apple Connection and Direct-to-Device Connectivity
One of the most intriguing aspects of the Globalstar acquisition is its relationship with Apple. Globalstar is the technology powering the “Emergency SOS” feature on iPhones, which allows users to send emergency messages via satellite when outside of cellular range.
Recognizing the criticality of this service, Amazon stated alongside the acquisition announcement that it has struck an agreement with Apple to continue providing satellite connectivity services for the iPhone and Apple Watch according to TechCrunch. This ensures that Apple’s safety features remain uninterrupted while giving Amazon a foot in the door of the smartphone ecosystem.
This “direct-to-device” capability is the next frontier of mobile telecommunications. Rather than requiring a bulky external antenna—which Amazon is also developing for commercial jets—direct-to-device technology allows standard smartphones to communicate directly with satellites. For the average consumer, So the end of “dead zones,” as the phone can seamlessly switch from a cell tower to a satellite when necessary.
Amazon Leo’s Commercial Roadmap
While the acquisition is a defensive move against Starlink, it is also an offensive move into the high-value enterprise and government markets. Amazon CEO Andy Jassy recently highlighted a growing roster of customers for Amazon Leo, which already includes:
- NASA
- AT&T
- Vodafone
- Delta Airlines
- Australia’s National Broadband Network
To serve these clients, Amazon is diversifying its hardware. The company recently debuted a new satellite internet antenna specifically designed for commercial aircraft, promising high-speed internet for passengers during flights as detailed by TechCrunch. This targets the lucrative aviation sector, where Starlink has already made significant inroads.
Key Comparison: Amazon Leo vs. Starlink
| Feature | Amazon Leo (Current/Target) | SpaceX Starlink |
|---|---|---|
| Current Satellites | ~200 (plus Globalstar’s 24+) | 10,000+ |
| Target Constellation | 3,200+ | Ongoing Expansion |
| Primary Market | Enterprise, Aviation, Gov | Retail, Enterprise, Aviation, Maritime |
| Global Reach | Expanding | ~150 Countries |
What This Means for the Industry
The $11.57 billion price tag underscores the immense value of spectrum licenses. In the world of satellite communications, the right to transmit on specific frequencies is a finite and highly regulated resource. By acquiring Globalstar, Amazon isn’t just buying hardware; it is buying the legal right to operate in the orbital mobile connectivity space without having to fight years of regulatory battles for new licenses.
For consumers, this competition is likely to drive down the cost of satellite internet and accelerate the integration of satellite capabilities into standard consumer electronics. The move signals that the “space race” has shifted from government prestige to commercial infrastructure, where the goal is to create a seamless, global web of connectivity that functions regardless of geography.
As Amazon integrates Globalstar’s infrastructure, the industry will be watching closely to see if the company can meet its revised FCC deadlines and how quickly it can scale its launch cadence to match the pace set by SpaceX.
The next major milestone for the company will be the official launch of its direct-to-device services, slated for later this year.
Do you think Amazon can realistically catch up to Starlink, or is the lead too great? Share your thoughts in the comments below.