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. 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.
By acquiring Globalstar, Amazon gains access to a constellation of low-Earth orbit satellites and critically needed spectrum that is essential for direct-to-device communications. This spectrum allows satellites to connect directly with standard smartphones, bypassing the need for specialized hardware. The deal underscores Amazon’s ambition to compete with Starlink, which currently dominates the satellite internet market with over 4,000 satellites in orbit and millions of subscribers.
The partnership with Apple is particularly noteworthy. Apple has long been rumored to be working on satellite connectivity features for its iPhones, and Globalstar was already a partner for Apple’s Emergency SOS via satellite service. With Amazon now owning Globalstar, the e-commerce giant could become a key infrastructure provider for Apple’s future satellite services, potentially integrating with iPhones, iPads, and other devices.
Amazon’s Project Kuiper, its own satellite internet initiative, aims to launch over 3,200 satellites to provide broadband connectivity. The Globalstar acquisition accelerates Amazon’s capabilities, especially in direct-to-device services, which are seen as the next frontier in satellite communications. This could enable features like off-grid messaging, emergency services, and eventually mobile voice and data connectivity, directly competing with Starlink’s similar offerings.
The deal also signals the growing importance of low-Earth orbit satellites as a critical infrastructure for the future of global communications. With Amazon and SpaceX both investing heavily in this space, the competition is expected to drive innovation and lower costs, but also raise concerns about space debris and orbital congestion.
Amazon’s acquisition of Globalstar is a clear statement of intent: the company is not just an e-commerce and cloud computing giant, but also a major player in the race to control the next generation of connectivity infrastructure. As the deal moves through regulatory approvals, the industry will be watching closely to see how Amazon leverages Globalstar’s assets to challenge Starlink’s dominance.
