Amazon.com Inc. (NASDAQ: AMZN) is making a strategic move into satellite connectivity with its approximately $11.6 billion acquisition of Globalstar, positioning the deal as a direct challenge to SpaceX's Starlink while securing critical direct-to-device capabilities and a key partnership with Apple, according to a report from Channelchek. The acquisition provides Amazon with valuable spectrum licenses and satellite infrastructure that would be difficult to replicate, enabling plans for a direct-to-device network by 2028, while also establishing Amazon as a potential backend connectivity provider for Apple's ecosystem, as the transaction highlights intensifying competition in the low-Earth orbit satellite market and a broader push to control next-generation global connectivity infrastructure.
The deal underscores Amazon's ambition to expand beyond its core e-commerce and cloud computing businesses into the rapidly growing satellite communications sector. By acquiring Globalstar, Amazon gains access to a constellation of low-Earth orbit satellites and licensed spectrum that can support direct-to-device connectivity, a technology that allows smartphones and other devices to connect directly to satellites without requiring specialized hardware. This capability is increasingly seen as a critical component for future wireless networks, enabling connectivity in remote areas and providing backup during emergencies.
Amazon's move directly challenges SpaceX's Starlink, which has dominated the satellite internet market with over 4,000 satellites in orbit and more than 1.5 million subscribers. However, Starlink primarily focuses on providing broadband internet to fixed locations via user terminals. Amazon's direct-to-device approach could offer a more seamless integration with mobile devices, potentially reaching a larger consumer base. The acquisition also positions Amazon as a key player in the satellite industry, leveraging its financial strength and existing infrastructure to accelerate deployment.
Furthermore, the deal strengthens Amazon's relationship with Apple, as Globalstar currently provides satellite connectivity for Apple's iPhone 14 and later models through a partnership. Amazon could become the backend provider for Apple's satellite services, deepening ties between the two tech giants. This integration could lead to enhanced features for Apple users, such as emergency SOS and messaging capabilities via satellite.
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