Amazon.Com Inc. signed a merger agreement to acquire Globalstar Inc. in an $11.6 billion transaction that will allow Amazone Leo to add direct-to-device services to its low Earth orbit (LEO) satellite network and extend cellular coverage.
The move will also put the e-commerce giant in direct competition with Elon Musk’s Starlink.
Additionally, Amazon and Apple Inc. have signed an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch. This will include emergency SOS via satellite capabilities.
Long-term vision
The acquisition is part of Amazon’s long-term vision for space-based connectivity. Amazon said it will work with mobile network operators and other partners to extend high-speed connectivity through satellites to users globally.
Globalstar is a mobile satellite service operator that has non-geostationary orbit (NGSO) satellites and D2D technology. Under the agreement, Amazon will gain Globalstar’s:
- Existing satellite operations
- Infrastructure and assets
- Mobile satellite services spectrum licenses
Amazon said the combination of Globalstar’s spectrum and mobile satellite services with Amazon Leo will enable the company to deliver continuous connectivity for consumer, enterprise and government customers globally. The existing satellite fleet and new satellites will expand Amazon’s capabilities for broadband system and its planned D2D satellite system.
“There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, senior VP of Devices & Services at Amazon.
