I just saw a news story that sums up the battle for the skies: Amazon has just completed the acquisition of Globalstar for $11.57 billion. It’s not just any corporate deal—it's a strategic move directly against Starlink’s dominance.

What makes this interesting is how Amazon solved three problems at once. First, it secured rare satellite spectrum in the L-band, a resource that would normally take years to obtain through regulatory auctions. Second, it inherited approximately 24 satellites in orbit (expanding to 54) that are already operational. Third, and perhaps most importantly, it secured a long-term agreement with Apple, which had invested $1.5 billion in Globalstar in 2024 for its satellite emergency features.

But here’s the problem: Amazon currently has only 243 satellites in orbit. Starlink, on the other hand, operates with about 9,500 satellites serving over 9 million users. This scale difference is brutal. Globalstar added little to close this gap.

The real bottleneck is launch capacity. Amazon promised 3,236 satellites in low Earth orbit back in 2019 but ran into rocket shortages, manufacturing delays, and launch limitations. Worse, the company even had to use SpaceX’s Falcon 9 rockets for some launches. Earlier this year, Amazon asked the FCC for a two-year extension just to complete the deployment of 1,600 satellites it had already approved.

The long-term solution might come from Blue Origin with the New Glenn rocket, but it’s still unclear whether they will achieve enough launch frequency for a massive constellation.

Now, the most interesting part: Amazon plans to launch its own direct-to-cell satellite connection service (D2D) in 2028. This means phones connecting directly to satellites for voice, messaging, and data, without relying on ground stations. Starlink has already tested this with T-Mobile and got ahead. Amazon is trying to catch up.

Globalstar’s stock rose 9.6% after the announcement. Amazon’s shares went up 3%. The timing is also relevant—this all happens while SpaceX is pushing forward with its IPO plans, with Starlink accounting for between 50% and 80% of the company’s revenue.

It’s a clear race for the skies. Amazon is spending heavily to not fall behind, but Starlink’s advantage in satellite count and operational infrastructure remains structurally significant. The question now is whether Amazon can solve its launch speed issues before Starlink further consolidates its position.