Amazon moved to buy satellite communications company Globalstar for $10.8 billion on Tuesday in order to compete with Elon Musk’s Starlink service.
The announcement demonstrates how the technology company is committed to increasing its footprint in space, a frontier that Musk has marked with Starlink and SpaceX.
The deal between Amazon and Globalstar will enable customers to connect their devices directly to satellite internet capabilities with the help of Amazon Leo, a satellite internet network designed to remain in low Earth orbit. The satellites will be used to provide voice, data and messaging services starting in 2028 to those who may be out of reach from traditional cellular networks.
First, the nearly $11 billion cash-and-stock transaction must close by then. It is subject to approval from telecommunications regulators.
“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most,” Panos Panay, senior vice president of Amazon Devices and Services, said in a press release.
“We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime,” Globalstar CEO Paul Jacobs added. “The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”
Additionally, Amazon announced a partnership with Apple that will enable Amazon Leo to power satellite services for iPhones and Apple Watches. Apple customers who take advantage of this offer will be able to text emergency services, request roadside assistance, or share their location if they find themselves in a remote area.
Globalstar currently partners with Apple to provide those satellite services, making both of their partnerships with Amazon a logical next step.
Amazon Leo, formerly known as Project Kuiper, received approval from the Federal Communications Commission in 2020 to deploy at least 3,236 satellites in low Earth orbit by the end of July 2029. Over 200 satellites are currently operating, Amazon said in a statement last month.
The company is required to launch up to 1,600 satellites by this July in order to meet an FCC regulatory requirement. Amazon has requested a two-year extension to the deadline, as it is nowhere near the halfway point in its plan to launch over 3,200 satellites.
By contrast, Starlink has over 10,000 active satellites orbiting above Earth out of the approximately 11,800 that have been launched since 2019. Musk uses his private aerospace company, SpaceX, to launch the Starlink satellites.
SpaceX just launched the latest 29 Starlink broadband satellites from Cape Canaveral Space Force Station in Florida on Tuesday. The internet service is a subsidiary of SpaceX.
SPACEX DEPLOYS 29 STARLINK SATELLITES FROM CAPE CANAVERAL IN PREDAWN LAUNCH
While Starlink is currently ahead in the global connectivity game, Amazon Leo may be able to catch up by following through on its partnerships with Globalstar and Apple.
Amazon’s announcement comes two weeks after SpaceX filed to go public in what may be the largest initial public offering made in history. The move sets up Musk to become the world’s first trillionaire. After merging with xAI in February, SpaceX was last valued at $1.25 trillion. The IPO is aiming for a valuation between $1.5 and $1.75 trillion.