Amazon Leo plans to expand its satellite services through the Globalstar acquisition.
The US regulator approved a deal that will expand Leo’s satellite network and support services for compatible iPhones and Apple Watches.
The US Federal Communications Commission (FCC) has approved the $11.5 billion Amazon Leo acquisition of mobile-satellite operator Globalstar. Amazon says the deal will expand Leo’s space-based network and enable direct-to-device services.
The approval supports Amazon’s ambitions to offer both fixed and mobile satellite connectivity. It also brings together Leo’s growing network and Globalstar’s existing satellite services, including emergency connectivity for Apple devices.
Amazon Leo acquisition targets wider coverage
The FCC said the companies’ complementary assets could strengthen Leo’s entry into the direct-to-device market. It also expects the combination to create a stronger operator serving residential, business and government customers.
In addition, the regulator said the deal would likely benefit the public by improving data coverage in underserved areas. Amazon had previously identified a broader satellite footprint and direct-to-device capability as goals of the acquisition.
Leo to support Apple satellite services
Globalstar already provides emergency satellite connectivity for compatible iPhones and Apple Watches. Apple also held a 20 per cent stake in the operator before the takeover.
As part of the deal, Leo will power satellite services for supported iPhone and Apple Watch models. The arrangement therefore adds an established consumer-device service to Amazon’s wider satellite plans.
Amazon expands its satellite network
Meanwhile, Leo continues to build its network as a rival to SpaceX’s Starlink. The company recently announced that it had 400 satellites in orbit.
It also revealed last month that it had launched satellite internet service in Uzbekistan. Separately, Leo is working with Delta to bring satellite internet to flights in the future.
To support its expansion, Amazon recently added six Arianespace launches. The company aims to have more than 3,000 low-Earth-orbit satellites in the near future.
However, that planned fleet would remain well below SpaceX’s 11,000 satellites. The Globalstar deal adds a mobile-service expansion alongside Leo’s continuing satellite launches and internet rollout.
