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Amazon buys the satellite internet company behind Apple’s SOS system

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Why This Matters

Amazon's acquisition of Globalstar aims to expand its satellite network, competing with Starlink and enhancing direct-to-device connectivity for Apple devices. This move underscores the growing importance of satellite internet in providing global, reliable connectivity, especially for emergency services and remote areas. The collaboration hints at future integrated satellite services between Amazon and Apple, shaping the next phase of mobile connectivity.

Key Takeaways

Amazon has today announced it is merging with satellite internet provider Globalstar Inc. to bolster Leo, its Starlink rival. Globalstar isn’t a household name but you do know its work, as it provides Apple’s emergency satellite connectivity for compatible iPhones and Watches. In a statement, Amazon says the deal will grow Leo’s space-based footprint and enable direct-to-device service for its burgeoning satellite network.

An interesting wrinkle is Apple owns 20 percent of Globalstar, which it bought for $1.5 billion in 2024, but that didn’t get a mention. Instead, the release says Amazon and Apple have agreed Leo will “power satellite services for supported iPhone and Apple Watch models.” And that this support will continue as Leo’s network evolves, as well as collaborating “with Apple on future satellite services using Amazon Leo’s expanded satellite network.”

The release adds Leo’s direct-to-device service won’t start until 2028, and the deal itself isn’t expected to close until 2027. That is, of course, unless Amazon doesn’t placate the FCC into extending its deadline to get more satellites into orbit before July 2026. At present, the company needs to have 1,600 satellites in orbit by that deadline, but only expects to have around 700 actually up in the heavens and working by then.