Engadget reports that the US Federal Communications Commission has approved Amazon Leo to acquire mobile-satellite operator Globalstar for $11.5 billion. This transaction aims to broaden the company's space footprint and introduce direct-to-device service for its expanding satellite network.
Key takeaways
- The US Federal Communications Commission approved the $11.5 billion deal between Amazon Leo and Globalstar.
- The acquisition lets the satellite network offer direct-to-device services and fixed and mobile options.
- Globalstar previously provided emergency satellite connectivity for iPhones and Apple Watches.
- Leo plans to build a constellation with more than 3,000 low-earth orbit satellites.
What is the Amazon Leo and Globalstar deal?
According to Engadget, the regulator explained in a press release that the arrangement combines complementary assets. The agency noted that "the companies' complementary assets promise to enhance Amazon Leo's entry into the direct-to-device segment and create a stronger satellite operator capable of offering fixed and mobile services to residential, business, and government customers." Regulators stated that the transaction should benefit the public by improving data coverage in underserved regions.
How does Apple fit into the Globalstar acquisition?
Many consumers might already use Globalstar services without realizing it, because the company powers emergency satellite connectivity for compatible iPhones and Apple Watches. Apple held a 20 percent stake in the firm before the takeover. Following the transaction, Leo will power satellite services for supported Apple devices.
What happens next for the satellite network?
As a rival to SpaceX's Starlink, Leo currently has 400 satellites in orbit and recently launched high-quality internet service in Uzbekistan. The network also partnered with Delta to bring inflight internet. To reach a goal of more than 3,000 low-earth orbit satellites, the company recently added six new Arianespace launches, though it still trails SpaceX's 11,000 satellites.
Frequently asked questions
The US Federal Communications Commission approved the $11.5 billion acquisition of Globalstar by Amazon Leo.
The deal is designed to expand the space-based footprint of Amazon Leo and allow direct-to-device service for its growing satellite network.
Globalstar provides emergency satellite connectivity for compatible iPhones and Watches, and Apple held a 20 percent stake in Globalstar before the takeover.
Amazon Leo currently has 400 satellites in orbit and aims to have more than 3,000 low-earth orbit satellites in the near future.
Amazon Leo is teaming up with Delta to eventually bring satellite internet to flights.
Based on reporting by Engadget. Read the original article
