Amazon Acquires Globalstar to Power iPhone Satellite features and Rival Starlink

Amazon is making a massive move into the final frontier by acquiring satellite operator Globalstar in a deal worth roughly $11.6 billion. The agreement essentially merges Globalstar’s assets into Amazon’s Leo satellite network, which was recently rebranded from Project Kuiper. This isn’t just about providing faster internet for homes; it is a direct play for mobile connectivity.

By grabbing Globalstar’s radio spectrum and expertise, Amazon plans to launch its own Direct-to-Device (D2D) service by 2028. This means your phone could eventually connect straight to a satellite for voice, text, and data without needing a cell tower in sight.

The biggest ripple effect is a new long-term partnership between Amazon and Apple. Since Globalstar already powers the emergency satellite features on the iPhone 14 and newer models, Amazon will now be the one keeping those lifelines active. Looking ahead, Amazon Leo will eventually take over the heavy lifting, promising even faster speeds and better performance for future iPhone and Apple Watch users who find themselves off the grid. It is a clear signal that Amazon wants to be the backbone of global mobile connectivity, moving beyond just being a retail and cloud giant.

How this acquisition impacts SpaceX and Starlink

The acquisition puts Amazon in a much stronger position to challenge Elon Musk’s dominance in space. SpaceX is currently testing its own D2D service with carriers like T-Mobile, but Amazon’s acquisition gives it the immediate regulatory keys and spectrum licenses to compete in this same space right away.

By securing Apple as a partner, Amazon has also guaranteed a massive, high-end user base. While SpaceX has had to partner with individual cellular carriers, Amazon went straight to the world’s most popular device manufacturer. Furthermore, buying Globalstar allows Amazon to bypass years of red tape and licensing hurdles that usually slow down new satellite players.

The advantages Starlink still holds

Despite Amazon’s big spend, SpaceX still holds the lead in several key areas. The most significant advantage is launch capability. SpaceX owns the rockets, which means it can launch its own satellites at cost and on its own schedule. While Amazon has contracted launches with various providers, it does not yet have the same vertical integration. Blue Origin’s New Glenn rocket has yet to prove itself as a reliable system to launch non-stop satellite payloads like SpaceX’s Falcon 9.

Starlink also has first-mover maturity, with thousands of satellites already in orbit and millions of paying customers globally. Amazon Leo is still in its early stages and does not expect to deploy its next-gen D2D system until 2028. Additionally, SpaceX’s Direct to Cell technology is already undergoing active testing on standard LTE phones, proving the tech works today while Amazon’s most advanced features are still years away from a full rollout.