Amazon acquires Globalstar for $10.8B to challenge SpaceX Starlink in satellite-to-phone market

Amazon acquires Globalstar for $10.8B to build satellite-to-phone rival to Starlink

Amazon is acquiring satellite operator Globalstar for approximately $10.8 billion to challenge SpaceX's dominant Starlink network in satellite-to-smartphone connectivity. The deal targets a 2028 launch for Amazon's own satellite-to-cell service, positioning Amazon as the most serious competitor to Starlink's growing lead in the space.

Why Globalstar's spectrum matters

The primary asset driving the deal is Globalstar's control over L-band and S-band spectrum licensed for satellite-to-phone communication—wireless assets that Amazon can deploy directly. Globalstar currently operates a constellation of 24 satellites nearing the end of their 15-year lifespan and uses a "bent pipe" architecture that relays signals without onboard processing. That's an operational handicap, but the spectrum rights are what Amazon is paying for.

Globalstar's 24 ground gateway stations across six continents and license to operate on key frequencies make it a functioning platform Amazon can build on faster than launching its own independent constellation. The company has new satellites in development, though it appears that higher-capability designs remain on the drawing board.

Apple's hand in the deal

Apple appears to be the driving force behind this acquisition. Apple owns a 20% stake in Globalstar and controls rights to 85% of the company's network capacity, which it uses to power emergency satellite features on iPhones and Apple Watches. That stake gives Apple de facto veto power over any acquisition—and Apple has made clear it does not want to rely solely on SpaceX.

The arrangement allows Apple to avoid a single point of leverage with Elon Musk's company. Amazon and Apple have now agreed to work together on satellite services for iPhones and Apple Watches using Amazon's growing LEO network, with Globalstar developing new satellites that Apple will use alongside Amazon's broader satellite-to-phone service.

The competitive stakes

Starlink has deployed more than 650 satellites dedicated to cell-phone connections and is connecting over 12 million people according to the company. SpaceX plans to launch thousands more satellites and has an unmatched launch advantage: a fleet of Falcon 9 rockets. Amazon has been funding alternative launch providers including ULA and Blue Origin, but delays have slowed its constellation build-out.

AST SpaceMobile, the third serious contender in satellite-to-phone, fell 10.5% on news of the deal—a signal that investors see Amazon and Apple's combined resources as a heavier competitor than AST's underfunded effort. AST remains years behind and lacks an operational constellation.

The market itself is still nascent. Most consumers in urban areas use traditional cell towers, and carriers have positioned satellite-to-phone chiefly as connectivity for remote areas where terrestrial networks don't exist. T-Mobile's Starlink offering frames it as coverage where towers can't reach. But as spectrum becomes scarcer and competition intensifies, the question is whether satellite-to-phone becomes a commodity service that every carrier needs or remains a niche feature for edge cases.