Amazon has made a significant move into the orbital mobile connectivity sector, previously led by Elon Musk’s Starlink, by announcing its agreement to acquire satellite firm Globalstar for $11.57 billion. This deal, priced at $90 per share, will provide Amazon with Globalstar’s operational capabilities, infrastructure, and the necessary spectrum licenses for mobile satellite services. This acquisition is set to bolster Amazon Leo, the company’s emerging satellite business, and will facilitate the introduction of direct-to-device services later this year.
The announcement coincides with remarks from Amazon CEO Andy Jassy, highlighting Leo’s clientele, which includes Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA. Recently, Amazon unveiled a satellite internet antenna designed for commercial aircraft, promising enhanced in-flight internet access.
Amazon’s aspirations with Leo encompass the deployment of over 3,200 satellites in low-Earth orbit, although the rollout has been slower than anticipated, with only approximately 200 satellites launched so far. The company has requested an extension from regulators to meet its goal of orbiting about 1,600 satellites by July.
In contrast, Starlink operates over 10,000 satellites and delivers internet services across 150 countries, catering to both retail consumers and businesses in various sectors, including maritime and aviation.
Globalstar contributes to this competitive landscape with its existing fleet of more than 24 low-Earth orbit satellites and has plans to acquire more. The company has also partnered with SpaceX to launch replacements for its satellites this year. Furthermore, Amazon has secured an agreement with Apple, ensuring the continuity of satellite connectivity services for iPhone and Apple Watch users. Globalstar already provides essential satellite services such as emergency messaging and roadside assistance on newer iPhone models in select regions.
Looking ahead, Amazon intends to launch its direct-to-device satellite system, anticipated for 2028, which will integrate with its existing broadband solutions. The plan is to establish a network comprising thousands of advanced satellites in low-Earth orbit to support hundreds of millions of users globally.
Fanpage: TechArena.au
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