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, while also establishing 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.
The deal underscores Amazon’s ambition to expand beyond its core e-commerce and cloud computing businesses into the satellite communications sector, a move that analysts say could reshape the competitive landscape. By acquiring Globalstar, Amazon gains access to a constellation of satellites and spectrum that are essential for direct-to-device communications, allowing smartphones and other devices to connect directly to satellites without needing specialized hardware. This capability is seen as a game-changer for rural connectivity, emergency services, and IoT applications.
Moreover, the acquisition aligns Amazon with Apple, as Globalstar already provides satellite services for Apple’s iPhone emergency SOS feature. The report suggests that Amazon could become a backend connectivity provider for Apple’s ecosystem, further integrating the two tech giants. This partnership could accelerate the adoption of satellite-based services and create new revenue streams for Amazon.
The transaction also intensifies the rivalry with SpaceX’s Starlink, which currently dominates the low-Earth orbit satellite market with over 5,000 satellites and millions of subscribers. Amazon’s Project Kuiper, its own satellite internet initiative, has been in development but has yet to launch commercial services. The Globalstar acquisition provides Amazon with immediate assets and spectrum, potentially leapfrogging some of the development challenges.
Industry experts note that the deal’s significance extends beyond competition with Starlink. It represents a broader push by major tech companies to control next-generation global connectivity infrastructure. As data consumption grows and the demand for ubiquitous connectivity increases, owning satellite networks becomes a strategic asset. Amazon’s move could trigger further consolidation in the satellite industry, with other players seeking to acquire or partner with existing operators.
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