Amazon’s decision to acquire Globalstar in an $11.5bn deal is more than a defensive move against Elon Musk’s Starlink and can be seen as a deliberate effort to accelerate the company’s satellite ambitions and to reposition it as a credible long‑term player in space‑based connectivity.
Satellite communications are evolving from a niche capability into a strategic layer of global digital infrastructure. As terrestrial networks struggle to meet demand, so low‑Earth‑orbit systems are becoming increasingly vital for governments, enterprises and consumers.
Starlink has built a significant early lead, with around 10,000 satellites in orbit and more than nine million users worldwide, giving SpaceX a dominant position in satellite broadband.
Amazon’s Project Kuiper, while ambitious, remains in its early deployment phase. With plans to launch around 3,200 satellites by 2029 and regulatory deadlines looming, the company was facing a long and expensive path to scale. By acquiring Globalstar that has changed everything delivering existing infrastructure, spectrum assets and operational experience in a single step.
The most immediate strategic value lies in Globalstar’s direct‑to‑device (D2D) capabilities. Unlike broadband‑focused systems that require dedicated user terminals, Globalstar’s network is designed for low‑data, highly reliable connections directly to smartphones and wearables. This technology already underpins features such as Emergency SOS and Find My on Apple’s iPhone and Apple Watch, demonstrating real‑world reliability at scale.
For Amazon, D2D is an important differentiator. It enables emergency communications, basic messaging and IoT connectivity without the need for new consumer hardware, bypassing traditional cellular infrastructure.
With Globalstar, Amazon can deploy D2D services from 2028, giving it a head start in a segment where Starlink is still developing its own offerings through partnerships with mobile operators such as T‑Mobile.
Spectrum access is another critical factor. Satellite connectivity is constrained not just by launch capacity but by globally harmonised spectrum rights. Globalstar brings established licences that would be difficult and time‑consuming to replicate. This strengthens Amazon’s position in D2D services and reduces reliance on complex partnerships or secondary spectrum arrangements. In this area, the acquisition allows Amazon not just to catch up, but potentially to leap ahead of competitors focused primarily on broadband.
Beyond connectivity, the deal fits neatly into Amazon’s wider business strategy. Satellite links can support Amazon Web Services by enabling edge connectivity and data ingestion from remote locations. They can also improve visibility and resilience across Amazon’s vast logistics network. Over time, D2D capabilities could be integrated into consumer devices or services, extending Amazon’s platform reach. The technology also opens opportunities with governments and enterprises seeking secure, resilient communications infrastructure.
Globalstar’s existing relationship with Apple adds both complexity and stability. Apple invested around $1.5 billion in Globalstar in 2024, securing roughly a 20% stake and funding the expansion of its satellite network to around 54 satellites. Amazon has confirmed that it will continue to support Apple’s emergency and location services, suggesting continuity rather than disruption. While Apple’s future equity position remains unclear, its reliance on Globalstar’s network makes continued cooperation likely and provides Amazon with a high‑profile customer from day one.
Amazon’s move comes as SpaceX progresses towards an IPO, with Starlink estimated to generate between half and four‑fifths of SpaceX’s revenue. Strengthening its satellite credentials now will allow Amazon to demonstrate strategic intent to regulators, partners and investors, while avoiding a direct, near‑term confrontation with Starlink’s sheer scale.
The deal delivers spectrum, technology and operational capability that would otherwise take years to build, and it gives Amazon plenty of options going forward across broadband, D2D and enterprise services, while buying breathing room for Project Kuiper to scale in the background.
In a market where scale is important but spectrum, service diversity and integration matter just as much, Amazon has used this acquisition to strengthen its position across all three dimensions at a time when space‑based connectivity is becoming a core component of the global digital economy.
