Amazon has informed the US Federal Communications Commission (FCC) that, following its acquisition of the satellite operator Globalstar, it will also hold the stake previously owned by Apple. This concerns 20% of Globalstar shares, which were granted to Apple as part of an agreement to expand satellite connectivity for iPhone smartphones. This was reported by Ixbt.com reports.
The Globalstar network provides the Emergency SOS feature for iPhone users in areas without mobile coverage. Apple previously invested $300 million in this partnership, later increasing its investment to $1.1 billion. In exchange, Globalstar committed to dedicating 85% of its satellite capacity to serving iPhone users.
According to documents submitted to the FCC, this major $11.6 billion deal will be executed in several stages. Amazon will first merge Globalstar with its subsidiary, Grapefruit Acquisition Sub II, LLC, and subsequently acquire Apple's stake. Amazon emphasized that this purchase will not interfere with existing satellite services for iPhone.
Amazon plans to use this infrastructure for much broader purposes. The company aims to create a next-generation D2D (direct-to-device) network. This technology enables satellites to connect directly to smartphones and other mobile devices without the need for intermediate terminals.
The market for satellite connectivity for smartphones is becoming a new competitive arena for major tech giants. In addition to Apple and Amazon, SpaceX and Google are also actively developing their projects. This deal demonstrates that satellite communication is becoming an integral part of the global mobile network, rather than just a tool for emergencies.
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