Amazon is reportedly in advanced discussions to acquire the satellite communications company Globalstar to strengthen its position in the satellite internet race. The deal – which is not yet finalized and could still change or fall apart – is estimated to be worth around $9 billion, reports The Financial Times. If completed, Amazon would gain access to Globalstar’s existing low-Earth orbit satellite network and valuable spectrum rights, which are important for transmitting data from space to Earth.
The potential move is seen as part of Amazon’s effort to speed up its Project Kuiper broadband rollout. While Amazon has already begun launching Kuiper satellites and building supporting infrastructure, the program is still in its early scaling phase compared to established competitors like SpaceX’s Starlink, which already operates a large satellite internet network worldwide.
The development becomes significant as Globalstar is not a new entrant in the satellite industry. It operates a network of low-Earth orbit satellites primarily used for mobile voice and data services, asset tracking, and emergency communications. Its services are widely used in industries that require connectivity in remote areas like shipping, energy exploration, aviation, and disaster response. Beyond its satellite fleet, one of Globalstar’s most strategically valuable assets is its licensed radio frequency spectrum. In satellite communications, spectrum rights are essential because they determine how signals are transmitted and received without interference.
A major complexity in the potential acquisition is the involvement of Apple, which holds around a 20% stake in Globalstar. Apple uses Globalstar’s satellite infrastructure to support emergency SOS and satellite messaging features on recent iPhone models, allowing users to communicate in areas without cellular coverage. Because of this existing relationship, any acquisition of Globalstar would likely require careful negotiation involving not only Amazon and Globalstar but also Apple, raising questions about how existing service agreements would continue under new ownership.
If Amazon were to acquire Globalstar, it could gain not only spectrum rights but also operational experience in running a satellite communications network. This could potentially complement Amazon’s Kuiper project by reducing some of the infrastructure and regulatory challenges typically associated with building a satellite internet system from scratch.
However, despite the scale and potential impact of the deal, significant uncertainty remains. The discussions are still ongoing, no final agreement has been reached, and regulatory approvals would likely be required in multiple jurisdictions if the deal proceeds. Also, the involvement of Apple and the sensitive nature of satellite spectrum rights add further complexity.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
