A stunning amount for just 24 active satellites – but Globalstar owns 2.4GHz spectrum licences, perfect for D2D, plus unique access to Apple’s ecosystem and more
Amazon is to acquire Globalstar for $11.57 billion – rumours of a tie-up had been circulating for some time. There are many strands to this story. One is the accelerating consolidation of the sector: in the race to offer device-to-device (D2D) services, players are in a celestial ‘land grab’ for spectrum and infrastructure to gain scale as rapidly as possible.
Last September SpaceX, which runs the Starlink constellation, announced it is to acquire Echostar’s AWS-4 and H-block spectrum licences for about $17 billion. In October, Lynk and Omnispace published plans to merge in the interests of delivering global D2D connectivity.
Tim Hatt, Head of Research & Consulting at GSMA Intelligence, says the Amazon and Globalstar announcement, “furthers the recent wave of consolidation in the sector…which has come earlier than many expected. Acquiring Globalstar to support Amazon’s LEO ambitions intensifies the race to secure…assets [to scale].
Spectrum is the key
Next, why is Amazon paying so much for 24 orbiting satellites (due to be increased to 32 this year), some of which have been in orbit since before the millennium? Because it gains Globalstar’s S-band spectrum (2.4GHz), the use of which is harmonised globally for telecoms. Hence it supports D2D everywhere on the planet without modification.
On the other hand, the Starlink constellation uses Ku and Ka bands which suits residential broadband services (see this article about MVNO US Mobile bundling Starlink for that purpose) but cannot provide indoor coverage.
So if Elon Musk’s Starlink wants to offer D2D services, he’s going to have to negotiate with Mr Bezos. And that’s not all. There’s the Apple aspect.
Capturing Apple’s ecosystem
Apple took a 20% stake in Globalstar in 2024 and committed to injecting $1.7 billion into the company and its planned C3 constellation, as well committing to refinancing debt due in 2029. There were no details at that time about when the new constellation would be operational. The regulatory filing for the deal said the operator’s commitment to dedicate 85% of its network capacity on new and existing and new satellites would continue. (The remaining capacity is used to support its legacy business – connectivity for remote monitoring and tracking of devices.)
Apple signed a separate agreement in parallel to the announcement of Amazon’s acquisition of Globalstar. Under this separate agreement, Amazon will power iPhones’ and Apple Watches’ satellite features, for emergency SOS and messages when they are out of coverage of terrestrial networks.
Looking forward, Amazon Leo, formerly known as Kuiper, is way behind its original build, launch and operate schedule. Now, in one bound, it has acquired a staggering number of ready-made end customers for when (and if) it launches its D2D system in 2028 (see Regulation, regulation, regulation below).
SpaceX might have 10,000 LEO satellites in orbit with more to come versus Amazon’s plan to have a constellation of 3,236 but that seems a lot less important than it did a couple of days ago.
As Hatt notes, “Amazon has a number of options for commercialising satellite services, which could include bundling direct to device with Prime, broadband, coverage partnerships with telcos, and connectivity support for its logistics operations. Whatever that pathway, the centre of gravity is clearly shifting…”
The XCOM factor
Globalstar announced a strategic alliance and licensing agreement with XCOM Labs in August 2023. The latter was founded by ex-Qualcomm exec to leverage wireless technology. Globalstar rebranded and launched the tech as XCOM RAN by Globalstar as a solution for private 5G networks.
It will be interesting to see how Amazon’s AI/cloud edge fits this new jigsaw piece. Towards the end of last year, the cloud hyperscaler said its AI and cloud edge strategy is focused on building a “vertically integrated ‘AI flywheel’ that connects high-performance cloud infrastructure with specialized, low-latency edge computing”.
By 2026, AWS is investing in custom AI silicon (Trainium and Inferentia) and expanding its edge portfolio to enable real-time, autonomous decision-making for enterprises. It is committed to capex of more than $200 billion in this endeavour. Watch this AWS EDGE Innovation Spotlight video to find out more.
Regulation, regulation, regulation
The deal is expected to close in 2027 according to press statements, subject to regulatory approvals. It’s possible there might be objections from some quarters.
Further, Amazon is in the throes of applying to the Federal Communications Commission, which regulates the US communications sector, for a two-year for a two-year extension to its deadline to get its first planned 1,618 satellites into orbit. So far, it’s only deployed something over 200 satellites but earlier this month Amazon’s CEO, Andy Jassy, said in a letter to shareholders that it was on track to launch commercial services by the middle of the this year.
The FCC seems to have a favourable approach but it’s not done until it’s done.
