Amazon to Acquire Globalstar, Become iPhone’s Primary Satellite Provider

The Amazon Globalstar merger will position Amazon as the primary satellite service provider for iPhones and Apple Watches, with the company announcing an agreement to acquire satellite operator Globalstar for an estimated $11.6 billion. The deal marks a significant expansion of Amazon’s satellite connectivity ambitions and represents a major shift in the competitive landscape for direct-to-device satellite services.

Under the agreement, Globalstar shareholders will receive either $90 in cash per share or 0.3210 shares of Amazon common stock with a value capped at $90 per share. The merger is expected to close in 2027, subject to regulatory approval and Globalstar meeting satellite replacement deadlines. Amazon also signed a separate agreement with Apple to provide satellite connectivity for current and future iPhone and Apple Watch features.

Amazon Globalstar Merger Details

Panos Panay, Amazon’s senior vice president of devices and services, said the Apple partnership will establish Amazon as the “primary satellite service provider for iPhone and Apple Watch.” The current Globalstar service already works with iPhone 14 and later models and the Apple Watch Ultra 3, enabling users to text emergency services, message friends and family, request roadside assistance, and share their location.

Amazon will acquire Globalstar’s satellite operations, infrastructure, and assets, including Mobile Satellite Service spectrum licenses with global authorizations. The combination of Globalstar’s spectrum and established capabilities with Amazon Leo’s scale and performance will enable the company to deliver connectivity for consumer, enterprise, and government customers worldwide, particularly in remote areas and regions with limited traditional cellular coverage.

Timeline and Service Launch

Amazon has deployed 241 satellites to date and plans to have over 3,000 when its initial constellation is complete. The company targets a 2028 launch for its own next-generation direct-to-device satellite system. Beginning in 2028, Amazon Leo will deploy a D2D satellite system offering advanced voice, data, and messaging services to mobile phones and cellular devices with substantially higher spectrum efficiency than legacy systems.

CEO Andy Jassy stated in a shareholder letter that Amazon Leo is officially scheduled to launch in mid-2026 with meaningful revenue commitments from enterprises and governments. These include partnerships with Delta Airlines, JetBlue, AT&T, Vodafone, DirecTV Latin America, Australia’s National Broadband Network, and NASA.

Competitive Landscape and Regulatory Path

The Amazon Globalstar merger positions the company to compete more directly with SpaceX’s Starlink, which operates over 10,000 satellites in orbit and approximately 650 direct-to-device satellites for mobile service. Globalstar currently operates 24 satellites in low-Earth orbit and plans to add 48 additional satellites through its third-generation system.

FCC Chairman Brendan Carr expressed openness to the deal on CNBC, stating the combination is “consistent with the long-term vision that we have to make sure that the US leads in this next-gen era of direct-to-cell technologies.” Carr indicated he hopes to see at least three major satellite operators in the direct-to-cell market, similar to the three major nationwide cellular carriers: AT&T, Verizon, and T-Mobile. AST SpaceMobile represents a third competitor with agreements from both AT&T and Verizon.

Greg Joswiak, Apple’s senior vice president of worldwide product marketing, said the partnership builds on Apple and Amazon’s existing collaboration through Amazon’s infrastructure services. “This ensures our users will continue to have access to the vital satellite features they have come to rely on, including Emergency SOS, Messages, Find My, and Roadside Assistance via satellite, so they can stay safe and connected while off the grid,” Joswiak stated.

Future Satellite Capabilities

Apple was reportedly developing a satellite framework for third-party applications that would allow developers to integrate satellite connectivity into their apps. The company was also working on satellite-powered maps and enhanced messaging capabilities for satellite connections on iPhones and Apple Watches.

The acquisition addresses previous concerns within Apple about Globalstar’s capabilities compared to Starlink. Some Apple employees had worried that the Globalstar network was outdated and limited in the features it could support. Amazon’s investment and integration with its Leo satellite network aims to resolve these limitations and provide more robust satellite services for Apple’s ecosystem.