Amazon has announced a strategic merger with satellite communications provider Globalstar Inc. to strengthen its Leo satellite network, a direct competitor to SpaceX’s Starlink. While Globalstar may not be a household name, it is a critical infrastructure player best known for powering Apple’s emergency satellite SOS features on compatible iPhones and Apple Watches.
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In an official statement, Amazon noted that the acquisition will significantly expand Leo’s space-based footprint. Most importantly, the deal is designed to enable direct-to-device service, allowing standard smartphones to connect directly to the Leo network without the need for specialized ground terminals.
A notable aspect of the deal—left unaddressed in the primary announcement—is that Apple acquired a 20% stake in Globalstar for $1.5 billion in 2024. Despite this, the merger appears to have the blessing of the tech giant. Amazon and Apple have reportedly agreed that:
- Continued Support: Leo will take over as the backbone for satellite services on supported iPhone and Apple Watch models.
- Future Collaboration: The two companies will partner on future satellite-based services as the Leo network evolves and expands.
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While the merger marks a major step forward, the rollout will not be immediate. The deal is expected to close in 2027, with direct-to-device consumer services not slated to begin until 2028.
Furthermore, Amazon faces a looming regulatory challenge with the FCC. The company is currently under a deadline to have 1,600 satellites in orbit by July 2026. At its current pace, Amazon only expects to have roughly 700 satellites operational by that date, meaning it must successfully petition the FCC for a deadline extension to keep the project on track.
