Amazon.com Inc. (NASDAQ: AMZN) has made 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. This move also establishes 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.
Amazon's entry into satellite communications comes as the market for global internet coverage expands, with Starlink already holding a significant lead. However, Globalstar's existing spectrum assets, particularly in the L- and S-bands, are well-suited for direct-to-smartphone connectivity, a capability that is increasingly sought after by telecom operators and device manufacturers. By integrating Globalstar's network, Amazon can offer seamless satellite-based services to customers without requiring specialized hardware.
For Apple, the deal could solidify its partnership with Globalstar, which already provides emergency satellite messaging for iPhones. Amazon's infrastructure could enhance these services and extend them to broader connectivity, potentially allowing Apple to offload backend operations to Amazon Web Services (AWS). This symbiotic relationship could give both companies an edge over rivals like Starlink, which is developing its own direct-to-cell service in partnership with T-Mobile.
The implications of this acquisition extend beyond the consumer market. Amazon's cloud computing division, AWS, stands to gain a new revenue stream by offering satellite connectivity as a service to enterprises and governments. This aligns with Amazon's long-term strategy of dominating infrastructure layers, from cloud computing to logistics and now space-based communications.
Competition in the low-Earth orbit satellite market is heating up, with companies like SpaceX, OneWeb, and now Amazon vying for dominance. The Globalstar deal not only gives Amazon a foothold but also signals that the race for next-generation connectivity is no longer just about providing internet to underserved areas—it is about controlling the backbone of global communications.
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