Amazon takes step toward expanding its satellite services with Globalstar acquisition

WASHINGTON — Amazon just took a major step in its plan to ramp up its satellite network services through Amazon Leo. 

The company announced the acquisition of Globalstar, a satellite telecommunications business, on Tuesday. The roughly $11.57 billion deal will enable Amazon to build its own direct-to-device satellite system, which it hopes to launch by 2028. 

Amazon said the new, expanded system will combine Globalstar’s satellite network, radio spectrum, and expertise with Amazon’s growing space-based communications plans. The company says its long-term goal is to work with mobile carriers and other partners to deliver reliable connectivity to customers in remote areas or where traditional networks are unavailable.

Amazon Leo, formerly known as Project Kuiper, is a low-Earth orbit satellite network that was developed by Amazon and offers global high-speed, low-latency broadband internet. 

The company began the full-scale deployment of its “satellite constellation” this month and has set a goal to launch more than 3,200 satellites in the next few years. By comparison, Starlink, which touts similar satellite services, operates a network of roughly 9,500 satellites. 

The acquisition of Globalstar, which has been in the satellite technology and communication business for decades, will greatly advance Amazon’s goals for Amazon Leo, the company stated. 

The deal also incorporates an existing agreement between Globalstar and Apple. Globalstar already partners with Apple for select services and will continue that support under the merger, with expanded opportunities for service. Amazon Leo will handle its satellite services for supported iPhone and Apple Watch models, the company said in a news release.