Amazon, acquiring the global star... Apple’s "Emergency SOS" satellite network joins the direct connection competition

Amazon($AMZN) will acquire Globalstar($GSAT) for $11.6 billion (approximately 17.06868 trillion Korean won) to expand its satellite internet business. While integrating Apple($AAPL)'s core emergency rescue service partner, this move also marks Amazon$AMZN’s official entry into the competition for dominance in the “device-to-satellite” communication market.

Amazon acquires Globalstar for $11.6 billion

On the 15th, Amazon and Globalstar announced they had signed an acquisition agreement. The purchase price is $90 per share, a 23% premium over Globalstar’s previous unaffected closing price. The total transaction amounts to $11.6 billion, approximately 17.06868 trillion Korean won. The deal is expected to be completed in 2027 after regulatory approval and satellite network upgrades.

Dave Limp, Senior Vice President of Amazon Devices and Services, said: “With Globalstar’s proven technological strength and Amazon’s innovation capabilities, we will be able to provide faster, more reliable services in more regions.”

Maintaining Apple’s Emergency SOS Service… and Linking with Amazon Satellite Network

Globalstar is a carrier that uses low Earth orbit satellites to provide wireless connectivity to remote or underserved areas. Its advantage lies in the ability of smartphones and other devices to connect directly to satellites. Notably, the company’s satellite network is the foundation for the built-in “Emergency SOS” feature on iPhone and Apple Watch. This service allows users to send distress signals even in areas without cellular coverage.

Amazon explained that after the acquisition, Globalstar’s satellites will continue to support Apple’s services. Meanwhile, the company also plans to develop new services linked with its own “Project Kuiper” satellite network, which currently consists of over 200 satellites.

Core Focus on “Device-to-Satellite” Connectivity and Spectrum Assets

The value of this acquisition is not just in the number of satellites. Globalstar operates ground gateway stations worldwide and holds spectrum licenses necessary for direct-to-device services. These spectrum assets can connect directly to smartphones and other devices without the need for separate dish antennas, offering broad application possibilities.

Globalstar’s satellites handle multiple users’ data within the same frequency band using CDMA technology. They assign a unique code to each user’s data to reduce interference and make it easier for ground stations to distinguish signals. Additionally, the newly ordered satellites will employ “beamforming” technology, focusing radio waves toward specific devices to improve speed and quality.

Investing $800 million instead of $80 million… Deploying 48 new satellites

Last year, Globalstar invested about $800 million to order 48 new satellites. This decision was made following Apple’s investment of $1.5 billion in cash. Apple is currently a core customer generating most of Globalstar’s revenue. Market analysts believe that through this acquisition, Amazon has gained a stable enterprise customer base and satellite infrastructure.

Amazon plans to launch a satellite internet system directly connecting to devices by 2028. To achieve this, the company plans to launch thousands of additional satellites in the coming years, significantly expanding the capacity of the Project Kuiper network. The company expects that, after upgrades, it will be able to support hundreds of millions of devices.

This deal indicates that Amazon does not view satellite internet as a mere auxiliary business but as a long-term core infrastructure. Especially as the “device-to-satellite” market, capable of direct connection with smartphones, grows rapidly, acquiring Globalstar is likely to become a key turning point in Amazon’s future space-based communication, device, and cloud service strategies.

TP AI Notice: This article uses a language model based on TokenPost.ai for summarization. The main content of the text may be omitted or inconsistent with facts.