Amazon has recently revealed its plans to purchase Globalstar, a satellite company, in a deal worth $11.57 billion. This acquisition is part of Amazon’s strategy to enhance its space-based internet endeavors and compete with Elon Musk’s Starlink network.
The agreement will incorporate Globalstar’s twenty-four satellites into Amazon’s current fleet of over 200 satellites. Amazon’s goal is to deploy around 3,200 satellites into low Earth orbit by 2029, with half of them required to be operational by a regulatory deadline in July, as reported by Reuters.
Globalstar’s satellite network is specially designed for Direct-to-Device (D2D) connectivity, enabling mobile phones and other devices to connect directly to satellites without the need for traditional ground-based cellular towers. This technology is crucial for emergency services and providing coverage in remote locations with limited infrastructure. Amazon and Globalstar anticipate that this deal will facilitate Amazon’s offering of D2D services starting in 2028.
Meanwhile, Starlink, the satellite division of SpaceX, currently serves over nine million users globally with high-speed broadband using user terminals. It is also working on developing D2D capabilities through collaborations with telecom companies such as T-Mobile.
According to reports, Amazon is gearing up to launch its satellite internet services later this year, marking a significant step in its expanding presence in the satellite internet market.
