The decision Amazon is set to buy Globalstar and become the satellite connectivity provider for the iPhone. This marks a significant shift in the telecommunications landscape. The acquisition not only reinforces the company's commitment to its Amazon Leo low-Earth orbit network, but also repositions Apple within a direct-to-mobile services ecosystem that aims to operate even where traditional coverage is unavailable.
This movement, valued at around $11.500 billion and expected to close in 2027This has implications that go far beyond the US market. In Europe and Spain, where interest in emergency services is growing and satellite messaging on your smartphoneThe combination of Amazon Leo, Globalstar and Apple devices could represent a leap forward in offline connectivity.
Details of Amazon's purchase of Globalstar
Amazon has reached a definitive agreement to acquire Globalstar, veteran mobile satellite communications operator and current pillar of iPhone satellite functions and the Apple Watch. Various sources place the value of the transaction at around $11.500-11.600 billion, a figure that reflects both the company's physical assets and the strategic value of its spectrum.
The operation includes the Acquisition of satellite operations, ground infrastructure and MSS (Mobile Satellite Services) spectrum Globalstar's acquisitions include frequency licenses with global authorizations. In a sector as highly regulated as space telecommunications, these licenses are a difficult asset to replicate and one of the main attractions of the agreement for Amazon. This type of mobile satellite services These are precisely the ones that allow direct communication with devices without terrestrial infrastructure.
On the financial front, the Globalstar shareholders will be able to choose to receive $90 in cash per share or 0,3210 shares of Amazon common stockwith a valuation cap of $90 per share. However, the cash component is subject to a pro-rata system that restricts the total cash to 40% of the shares; anything above that cap must be paid in Amazon stock.
The final amount is not completely finalized: It could be reduced by up to $110 million if Globalstar fails to meet certain operational targets.These include some technical milestones related to the HIBLEO-4 replacement satellite. Even so, shareholders controlling around 58% of the voting power have already given their written approval, clearing much of the corporate path.
The formal closing of the purchase is expected by 2027, subject to regulatory authorizations in different markets and compliance with those technical milestonesFrom then on, the full integration of Globalstar within the Amazon Leo architecture will begin, the new commercial name of the constellation that inherits the former Project Kuiper.
What Amazon gains: spectrum, satellites, and direct-to-device experience
Beyond the multimillion-dollar figure, what Amazon is really getting is a package that's very difficult to build from scratch: licensed spectrum, an operational constellation and years of experience in direct-to-device (D2D) servicesGlobalstar is one of the pioneers in non-geostationary low Earth orbit satellites and has worked for decades in critical and emergency communications.
The main strategic asset lies in the L-band and MSS spectrum that enables direct communication between satellites and mobile deviceswithout the need for bulky antennas or massive ground deployments. It is precisely this type of capability that makes it possible for an iPhone or an Apple Watch to send an emergency message from a location without conventional mobile coverage. direct communication between satellites and mobile devices It is the cornerstone of the new generation of D2D services.
According to the company, Globalstar's current fleet will be integrated with new, expanded-capacity satellites within the Amazon Leo ecosystem.The goal is to build a hybrid constellation that combines fixed broadband services with a direct connection to the device, so that the same network of satellites can serve homes and businesses as well as mobile phones and wearables.
Amazon also wants to rely on a global network of ground stations (gateways) and dedicated fiber linksIn addition to its own range of antennas and terminals (Leo Nano, Leo Pro, Leo Ultra) for fixed-line customers, the missing piece to complete the puzzle of direct smartphone access was precisely a partner with Globalstar's spectrum base and experience.
Panos Panay, Amazon's senior vice president of Devices and Services, has emphasized that There are still billions of people beyond the reach of current mobile networks. And Amazon Leo was created with the aim of reducing that gap. According to the executive, the combination of Globalstar's infrastructure with Amazon's innovative capabilities should result in faster and more stable service in more places around the world.
Amazon Leo: Direct connection to mobile from 2028
One of the main objectives of this operation is to accelerate the deployment of next-generation direct-to-device system that Amazon plans to launch starting in 2028The idea is that any compatible mobile phone or cellular device can connect directly to Amazon Leo satellites for voice, messaging, and data services in areas where there is no terrestrial network.
The company insists that its The D2D platform will make more efficient use of spectrum than legacy direct-to-mobile connection solutions.In practice, this should translate into greater speed, better performance, and the ability to support many more simultaneous terminals—a key factor if the goal is to serve hundreds of millions of users distributed worldwide.
Amazon describes a constellation made up of thousands of advanced satellites in low Earth orbitsupported by a secure network of ground antennas and fiber optic links. All these elements will be integrated with Amazon Leo's first and second generation systems, which, according to the company, will allow it to offer a single, coherent network of both fixed and mobile satellite services.
For Europe and Spain, the arrival of a second major constellation with clear ambitions in D2D can translate, at least on paper, into greater competition from proposals like SpaceX's Starlinkas well as in new specific offers for companies, public administrations or key sectors such as agriculture, transport, energy and civil protection.
Amazon has also indicated that it wants working with mobile network operators (MNOs) and other technology partners This direct satellite connectivity would complement existing terrestrial networks. In this way, coverage could be expanded without the need to deploy more physical antennas in certain rural or hard-to-reach areas, something especially relevant in European countries with large sparsely populated areas.
Apple, iPhone and Apple Watch: continuity of satellite services
A key question following the announcement was what would happen to the iPhone and Apple Watch users who currently rely on Globalstar for services such as satellite emergency SOSApple has been using this carrier's network since the iPhone 14 and Apple Watch Ultra 3 to allow users to contact emergency services or request roadside assistance without traditional cellular coverage. Specifically, features such as satellite roadside assistance They are one of the most practical use cases for this technology.
Far from breaking that relationship, Amazon and Apple have signed an agreement long-term collaboration agreement to maintain and expand these satellite functionsAmazon Leo's infrastructure will support both existing services and those Apple may launch in the future for iPhone and Apple Watch, maintaining continuity for current models and laying the foundation for new capabilities.
The pact contemplates that Apple devices continue to take advantage of existing Globalstar constellationsas well as the satellites already in production that will be manufactured by MDA Space. All these resources will be progressively integrated into the expanded Amazon Leo network, which will act as the backbone platform for the Cupertino company's satellite services.
Greg Joswiak, Apple's senior vice president of Worldwide Marketing, has noted that Emergency SOS via satellite has already helped to save numerous lives. Since its launch, cases have been reported in mountainous and remote areas of North America where cell service was nonexistent. For Apple, ensuring the continuity of these security features is a priority within the value proposition of its devices.
From the perspective of users in Spain and the rest of Europe, everything points to the fact that The satellite functions of compatible iPhones will not only be maintained, but are expected to gain coverage and reliability As Amazon deploys more satellites and launches its D2D system, these features are expected to expand to more countries and a greater number of models in the medium term, provided regulatory authorities allow it.
Impact in Europe and Spain: remote coverage and regulatory challenges
Amazon's acquisition of Globalstar is not just a corporate transaction: It reshapes the competitive landscape of satellite connectivity on a global scale.Amazon is positioning itself against rivals such as Starlink (SpaceX), Eutelsat OneWeb or AST SpaceMobile, while in Europe the move intersects with community plans to launch their own constellations and strengthen the continent's space autonomy.
On a practical level, the combination of Amazon Leo and Globalstar can help Improve coverage in rural areas, mountain areas, or areas poorly served by traditional mobile networksThis is a problem that remains highly visible in sparsely populated regions of Spain and other European countries. For users who live, work, or frequently travel outside major cities, the availability of basic services such as satellite messaging and emergency calls can make all the difference.
There are also implications for public services and administrationsA satellite network of this type can strengthen communications in emergencies, support civil protection operations, improve coordination in forest fires or floods, and serve as a backup when terrestrial infrastructures are affected by extreme weather events or supply cuts.
However, the operation will have to overcome a complex set of regulatory and competition reviewsOrganizations such as the FCC in the United States and their European equivalents will have to assess both the impact on the market and the management of the spectrum, a limited and especially sensitive resource when it comes to global constellations with thousands of satellites.
Europe is also promoting its own satellite constellation and service programs, so the coexistence between European public initiatives and large private networks like Amazon's This will add an extra layer of complexity. EU regulators will need to ensure that increased concentration in the hands of a few global players does not hinder access to satellite services for local businesses or new space projects on the continent.
Financial conditions, risks and competitive reading
In financial terms, the agreement establishes a mixed payment mechanism for Globalstar shareholdersThe option includes cash or Amazon stock, but with clear limits to prevent excessive cash outlays. Furthermore, the possibility of reducing the total value by up to $110 million if certain milestones are not met introduces a shared risk component between buyer and seller.
Several analyses already suggest that The market viewed this negotiation as a necessary move for Amazon to accelerate its space ambitions. and could stand up to Starlink, which until now has set the pace of the sector with its massive deployment of satellites and its broadband offering based on specific antennas.
Unlike Starlink's initial focus on fixed-line connections, Amazon seems to want to differentiate themselves with a more decisive commitment to direct connection to the device and through a service ecosystem that ranges from individual users to large corporate clients and public organizations. Apple's presence as a key client reinforces this strategy and gives the project visibility to millions of potential users.
As with any operation of this size, Amazon has incorporated into its communication a long list of risk warnings and forward-looking statementsUncertainty factors include potential regulatory delays, litigation, technical difficulties in deployment, fluctuations in stock prices, and even the impact of geopolitical conflicts, inflation, or natural disasters.
Despite these unknowns, the move places Amazon in the small group of companies with a real capacity to connect, from space, to hundreds of millions of devices around the world. For users of iPhone and Apple Watch In Spain and Europe, and for those who live or work in areas with poor coverage, the convergence of Amazon Leo, Globalstar and Apple opens the door to a new stage in which satellite connection ceases to be something exceptional and becomes a more integrated option in everyday life.
Everything points to Amazon's purchase of Globalstar and the alliance with Apple They will redefine how mobile phones and smartwatches connect when there are no antennas in sight.This sets up a scenario in which direct satellite connectivity to the device will gain importance for security and emergencies as well as for everyday uses in Europe, Spain and the rest of the world.
