Amazon has agreed to acquire satellite communications company Globalstar for over $11 billion, a move analysts say could significantly enhance iPhone connectivity and accelerate the e-commerce giant’s push into space-based internet services. The deal, announced Thursday, positions Amazon to compete more aggressively with SpaceX’s Starlink and other satellite broadband providers.
Globalstar operates a constellation of low-Earth orbit (LEO) satellites providing voice and data services, including Apple’s Emergency SOS via satellite feature introduced in iPhone 14 models. ‘This acquisition gives Amazon immediate infrastructure and spectrum rights that would take years to develop independently,’ said a telecom analyst familiar with the deal who requested anonymity because negotiations were private.
The transaction comes as Amazon prepares to launch its Project Kuiper satellite internet network, with FCC requirements mandating half its planned 3,236 satellites be operational by 2026. Sources close to the matter suggest Globalstar’s spectrum licenses and existing ground stations could help Amazon meet these deadlines while avoiding regulatory hurdles.
Industry observers note potential iPhone implications, as Apple currently relies on Globalstar for emergency satellite services. ‘We expect Amazon to honor existing contracts but may leverage this relationship for future collaborations,’ a technology sector analyst told WIRED. Some speculate about deeper Amazon-Apple integration, though both companies declined to comment on such possibilities.
If approved by regulators, the deal would mark one of Amazon’s largest acquisitions, following its $13.7 billion purchase of Whole Foods in 2017. Antitrust concerns may arise given Amazon’s expanding infrastructure dominance, but officials familiar with the filing say the companies structured it to emphasize Globalstar’s underutilized capacity rather than anti-competitive consolidation.
The acquisition reflects intensifying competition in satellite internet, where SpaceX’s Starlink boasts over 2 million users. Analysts suggest Amazon’s move could pressure telecom providers to accelerate 5G deployments while forcing legacy satellite operators to seek partnerships. ‘This isn’t just about backup connectivity—it’s about establishing the next generation of global internet infrastructure,’ the telecom analyst added.