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business 50d ago

Amazon finalizes $11.57 billion deal to acquire Globalstar amid satellite internet race

Amazon finalizes $11.57 billion deal to acquire Globalstar amid satellite internet race

Amazon's acquisition of Globalstar, announced at $11.57 billion, marks a significant step in its strategy to challenge SpaceX’s Starlink and expand satellite connectivity. This move consolidates spectrum rights and enhances its satellite network capabilities. The deal is expected to influence competitive dynamics and future satellite service offerings.

Amazon has finalized its $11.57 billion acquisition of satellite telecommunications company Globalstar, marking a significant expansion in its satellite internet ambitions, according to Rappler, The Guardian, and Quartz. The deal positions Amazon to directly compete with SpaceX’s Starlink, which operates a constellation of around 10,000 satellites compared to Amazon’s more limited 200 in low Earth orbit.

The purchase grants Amazon control over valuable spectrum rights used by mobile networks, potentially enhancing its ability to offer satellite-to-cellphone connectivity, as reported by Semafor and Quartz. This spectrum control also supports Amazon's strategy to build out its satellite internet infrastructure and expand mobile satellite services, including agreements that maintain Apple's iPhone satellite emergency features.

Amazon’s acquisition comes amid growing competition in the satellite internet race, with SpaceX’s Starlink already having a significant foothold. For example, in Mexico, Televisa’s subsidiary Bestel recently partnered with Starlink to resell satellite internet services across underserved areas, serving a user base of approximately 160,000 customers and expanding commercial contracts, according to Expansion MX.

Looking ahead, Amazon’s acquisition of Globalstar is likely to accelerate deployment of new satellite constellations and partnerships, raising the stakes in global satellite broadband provision. Industry watchers will closely follow how Amazon leverages its new satellite assets to challenge Starlink's market dominance and expand services in regions lacking adequate terrestrial internet infrastructure.

Developments · 52d ago

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