Amazon's $11.5 billion acquisition of Globalstar approved by FCC

On October 28, Amazon's satellite division, Amazon Leo, received approval from the Federal Communications Commission to acquire Globalstar for $11.5 billion. This transaction is set to enhance Amazon's satellite communications capabilities significantly.

Since April 2025, Amazon Leo has launched nearly 400 satellites with plans to deploy thousands more in low Earth orbit by 2029. The acquisition will provide Amazon with approximately 24 satellites and mobile satellite communication spectrum.

Reports indicate that Amazon has pledged to invest over $10 billion into Leo, aiming to launch commercial satellite communication services by the end of 2026. The FCC believes the integration of assets will facilitate Leo's entry into the direct-to-device satellite market, offering both fixed and mobile communication services.

FCC Chairman Brendan Carr stated, "The FCC supports Amazon Leo in launching high-speed next-generation satellite broadband services, enhancing market competition, and aiding communities across the United States in maintaining communication continuity."

Amazon expressed its enthusiasm for the acquisition approval, indicating that it is a significant step closer to providing new communication capabilities to customers. In July, Amazon had submitted a request to the FCC to deploy up to 5,105 satellites.

The technology for direct-to-device satellites allows devices like smartphones to connect directly to satellites. Globalstar provides emergency contact features, such as SOS, and location services for Apple iPhone and Apple Watch users. Amazon has previously disclosed an agreement with Apple to continue offering these services post-acquisition.

The FCC is expected to vote on October 29 regarding whether to advance a new round of wireless spectrum auctions to support the development of direct-to-device satellite services.

In 2024, Apple invested approximately $1.5 billion in Globalstar to expand iPhone communication services, acquiring a 20% stake in the company. It is reported that Apple contributed around 63% of Globalstar's revenue last year, and Amazon plans to acquire Apple's stake in Globalstar.

Globalstar announced last year that, with Apple's support, it would expand its satellite network from about 24 satellites to 54, including a few spare satellites. The outlet reported the story.

Reported by ITHome.