The US Federal Communications Commission approved the Amazon Globalstar acquisition on Thursday, clearing an 11.5 billion dollar takeover that gives Amazon Leo direct access to mobile satellite spectrum and existing consumer hardware.
Key points
- The FCC approved Amazon Leo’s 11.5 billion dollar purchase of satellite operator Globalstar.
- The transaction lets Amazon deliver direct-to-device communications across residential, commercial and public sector markets.
- Leo will take over the satellite infrastructure supporting Apple iPhone and Apple Watch emergency messaging.
- Amazon currently has 400 satellites in orbit, trailing SpaceX’s 11,000-satellite Starlink fleet.
FCC clearance for direct-to-device services
The regulatory ruling removes the primary legal barrier to Amazon’s largest space investment to date. According to the FCC’s decision, combining the two companies allows Amazon Leo to enter the direct-to-device market quickly, without having to assemble a dedicated mobile spectrum portfolio from scratch.
The regulator stated that the transaction will create an operator capable of offering fixed and mobile connections to businesses, consumers and government agencies. Regulators concluded that the merger will serve the public interest by broadening mobile data reach in remote and underserved regions where terrestrial phone masts cannot reach.
Direct-to-device technology connects standard consumer handsets directly to low-Earth orbit satellites. Until recently, space-based internet services required bulky external receivers or specialised dish terminals. By absorbing Globalstar’s established frequencies and ground equipment, Amazon can link standard consumer hardware to its wider network.
The Apple partnership and mobile spectrum
Globalstar’s most prominent commercial contract is with Apple. The satellite company provides the infrastructure behind Apple’s emergency satellite messaging feature, which links compatible iPhone handsets and Apple Watches to emergency responders when cellular networks fail.
Apple held a 20 per cent stake in Globalstar before Amazon agreed to the takeover. Under the acquisition agreement, Amazon Leo will assume operation of the satellite systems that support emergency connectivity across supported Apple devices, as Amazon previously explained.
Controlling Globalstar’s mobile-satellite service spectrum gives Amazon a direct line to millions of mobile devices. Rather than competing only for home broadband subscribers against terrestrial cable companies, Amazon can now embed satellite backup data services into smartphones, transport equipment and wearable devices.
Leo’s race against Starlink
The acquisition alters the balance of power in the private satellite sector, where SpaceX holds a dominant position. SpaceX operates roughly 11,000 operational satellites in orbit, offering commercial broadband in dozens of countries and expanding its own direct-to-cell services with cellular carriers.
Amazon Leo remains significantly smaller, with 400 operational satellites currently in orbit. However, Amazon has accelerated deployment through several commercial contracts. The company recently added six launches with European provider Arianespace to speed up its timetable, according to its satellite launch progress updates.
Amazon has stated that its initial system design requires more than 3,000 satellites in low-Earth orbit to achieve global broadband coverage. While that total remains well behind SpaceX’s numbers, the Globalstar spectrum allows Amazon to target mobile phone users sooner than its original launch timeline suggested.
Commercial expansion and next steps
Amazon has stepped up its commercial rollouts over the past month. The company went live with commercial satellite broadband services in Uzbekistan and signed an agreement with Delta Air Lines to provide in-flight internet connectivity across passenger aircraft.
The Globalstar acquisition brings both space hardware and licensed ground infrastructure into Amazon’s cloud computing and logistics ecosystem. By linking Globalstar’s spectrum directly into Amazon Web Services data centres, Amazon aims to offer multinational enterprise clients and government bodies unified terrestrial and space data routing.
With US regulatory approval secured, Amazon and Globalstar can move to final closing procedures and begin integrating their network operations and satellite management teams.
