US agency approves Amazon Leo’s $11.5B acquisition of Globalstar

Direct-to-device satellite connectivity becomes a more competitive and readily available option for smartphones and other devices.

The U.S. Federal Communications Commission (FCC) has approved Amazon's $11.5 billion acquisition of Globalstar. This approval, specifically from the FCC's space bureau, greenlights the transfer of 25 MHz of Mobile Satellite Service (MSS) spectrum. Amazon's project, Amazon Leo, aims to enhance its satellite internet capabilities and compete with SpaceX's Starlink. Amazon Leo plans to deploy over 5,000 new satellites, building on Globalstar's existing network of two dozen satellites and its deal with Apple for direct-to-device services. The deal, expected to close in early 2027, is seen as a significant move in the direct-to-device satellite communication market. This acquisition also involves regulatory authorizations and existing service agreements, including Apple's investment in Globalstar.

The FCC's approval signifies a major step in Amazon's strategy to establish a significant presence in satellite communications, directly challenging existing players like SpaceX. This move is not just about expanding satellite constellations; it is a strategic acquisition of spectrum and established infrastructure, including crucial regulatory authorizations and a partnership with Apple. The inclusion of Globalstar's spectrum and its existing deals, particularly with Apple for SOS services, provides Amazon with a substantial head start in the direct-to-device market.

This development intensifies the competition in the satellite direct-to-device sector, pushing other companies to accelerate their own plans and potentially leading to further consolidation or partnerships. The FCC's "aggressive" stance on freeing up spectrum suggests a future with more available bandwidth for satellite services, which could drive innovation and lower costs for consumers. The market is likely to see increased investment in satellite technology and infrastructure as players vie for market share and technological superiority in the coming years.