In an effort to accelerate its race to catch up with SpaceX's Starlink in the low-Earth orbit satellite network race, Amazon has confirmed it will partner with a leading satellite communications operator.GlobalstarThe merger, and this also confirmsPrevious market newsCorrect. While Globalstar may be relatively unknown to the general public, its most famous business is providing satellite connectivity infrastructure for "SOS emergency service" on iPhones and Apple Watches.
Amazon stated that the acquisition will significantly expand the space footprint of its low-Earth orbit satellite service, "Amazon Leo," and that it expects to officially enter the highly anticipated "Direct-to-Device" (D2D) market through the integrated satellite network.
Touching a nerve with tech giants: Apple's 20% stake and subsequent cooperation agreements
In 2024, Apple spent $15 billion to acquire approximately a 20% stake in Globalstar, thereby ensuring the stable operation of its satellite infrastructure for hardware devices.
While Amazon did not elaborate on the financial arrangements for this stake in its press release, Amazon and Apple have clearly reached a strategic agreement. The statement indicates that Amazon Leo will take over and continue to provide satellite communication services for supported iPhone and Apple Watch models.
Furthermore, as the Amazon Leo network evolves, both parties have pledged to leverage the expanded satellite network to jointly develop advanced satellite application services for the future.
The goal is to launch the "direct connection to mobile phone" service in 2028.
Amazon stated that one of the core strategic objectives of acquiring Globalstar was to develop the "Direct Connect" business. This technology allows ordinary smartphones to connect directly to satellite networks in space without the need for a large ground receiving antenna, and is considered the ultimate holy grail for the development of low-Earth orbit satellites.
However, the full commercialization of this technology will take time. The official expectation is that this complex acquisition will not be officially completed until 2027, and Amazon Leo's Direct Phone service will not officially launch until 2028 at the earliest.
Real-world challenges: FCC satellite launch deadline looms.
To realize this grand vision, Amazon faces a pressing regulatory hurdle: the significant delays in its launch schedule.
The U.S. Federal Communications Commission (FCC) mandates that Amazon launch its committed 1600 satellites into orbit by July 2026. However, facing a shortage of launch vehicles and technical challenges, Amazon admits it anticipates deploying only about 700 operational satellites by that deadline. If Amazon fails to persuade the FCC to extend this deadline, its space strategy could face a serious compliance crisis, which may be one of the catalysts prompting Amazon to accelerate its acquisition of Globalstar, which possesses existing satellite assets.
Analysis of viewpoints
The acquisition of Globalstar was not only about buying off-the-shelf satellite assets and valuable "communication spectrum" (the scarcest resource in satellite communications), but more importantly, it was about Amazon directly "buying" Apple, a super customer.
Faced with Starlink's absolute dominance in terms of launch volume and global coverage, Amazon Leo's reliance on its own satellite deployment is clearly insufficient. By acquiring Globalstar, which possesses mature D2D technology potential and spectrum resources, Amazon has essentially taken a shortcut, directly entering the satellite connectivity market for smartphones.
On the other hand, Apple's willingness to approve the deal (as a major shareholder) shows that Apple also realizes that Globalstar's existing size and funds may not be enough to handle future satellite services that are more bandwidth-intensive (such as two-way satellite messaging, satellite voice calls, and even internet access). Rather than letting Globalstar struggle alone, it's better to let Amazon, with its powerful AWS cloud ecosystem and huge capital, take over.
For Apple, all it needs to do is ensure that its hardware users have priority access to the most stable and widely covered satellite support. This is a perfect win-win-win situation where everyone gets what they want, and it also foreshadows that the low-Earth orbit satellite battlefield in 2028 will officially enter the "direct mobile connection" melee phase.
