By Kurtis Archer | 2026-05-13

Amazon's pending $11.57 billion deal to buy satellite communications (satcom) company Globalstar shows the company seeking to strengthen its modest satellite business to compete with SpaceX subsidiary Starlink.

The scale of the deal highlights the growing versatility of modern mega-constellations, as government and defense agencies seek structural redundancy -- independent backups -- that include commercial civilian networks.

Amazon is playing catch-up in a high-stakes race against SpaceX, which has a massive head start in the satellite internet industry.

Starlink, which has about 10,000 satellites in orbit, services 10 million users globally, Reuters reported April 14.

"There has been continued consolidation in the sector in order to compete with SpaceX in the satcom market," Canaccord ​Genuity director of equity research Austin Moeller told Reuters, noting SpaceX’s scale and launch capacity.

"I expect this trend to continue."

While Amazon is currently the underdog in terms of hardware, its planned acquisition of Globalstar’s network, which is expected to be finalized in 2027, provides immediate infrastructure and boosts current and future orbital plans.

Globalstar’s network of two dozen satellites will be added to Amazon Leo, the company's 200-strong satellite network.

Amazon is under a strict regulatory clock.

The company is required to have half its planned 3,200-unit satellite constellation in place by July, with the rest in low Earth orbit (LEO) by 2029.

Space industry observers say the deal provides the momentum needed to meet that deadline and begin rolling out satellite internet services to the public by the end of 2026.

"Amazon is buying time as much as it is buying assets," Quilty Space founder Chris Quilty told Tech Insider.

Globalstar’s safety legacy

Globalstar is already a household name for its role in public safety, powering satellite features found on millions of phones, including Apple’s Emergency SOS, Find My and Roadside Assistance.

It also serves a variety of industries through voice, data and asset tracking services.

Apple remains a large stakeholder in Globalstar, holding about 20% of the company's equity and having invested approximately $1.5 billion.

Amazon and Apple have signed an agreement to ensure these safety features will continue to function seamlessly for iPhone and Apple Watch users.

"Since launching more than three years ago, our groundbreaking safety service Emergency SOS via Satellite has helped save many lives around the world," said Apple's senior vice president of worldwide product marketing Greg Joswiak.

Among them, "a scout troop stranded on a winter hike in British Columbia," and "a woman who was airlifted to safety in Colorado after her car rolled down a 250-foot cliff," Joswiak said.

"Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo," he said.

Globalstar’s footprint in space is currently specialized but growing rapidly. The current fleet of about two dozen satellites will expand to 54, including several backup units to ensure 100% reliability for emergency services.

Direct-to-device connectivity

The end goal of the Amazon-Globalstar deal is a technology called direct-to-device (D2D).

This is the ultimate type of mobile connectivity, promising a world where a smartphone works even in the middle of the ocean or the deepest wilderness with no bulky satellite dish required.

Satellites traditionally require a ground terminal (like a Starlink dish) to provide internet. D2D changes the game by allowing satellites to communicate directly with smartphones, removing the need for terrestrial cell towers.

This system provides a critical safety net for emergency services and keeps users connected in dead zones where regular cellular coverage is impossible.

Analysts believe the D2D satellite market will be worth over $15 billion by 2035, according to Precedence Research.

In the satellite world, spectrum (the radio frequencies used to send data) is the most valuable real estate.

"Amazon has been falling behind Starlink on satellite broadband," Summit Ridge Group president Armand Musey told Reuters.

"Acquiring Globalstar allows them to catch up on their D2D spectrum position, and leap ahead on D2D deployment."

By buying Globalstar, Amazon didn't just buy satellites -- it bought the legal right to use specific frequencies suited for mobile devices, saving years of regulatory paperwork.

The satellite market is shifting from a crowded field of small players to a "Clash of the Titans." By absorbing Globalstar, Amazon is pursuing the hardware, licenses, and scale needed to prevent a SpaceX monopoly.

An emerging market

"We have long believed LEO satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime," Globalstar CEO Paul Jacobs said in a release announcing the deal with Amazon.

He pointed to the company's 30-year commitment to this vision via "sustained, long-term investment in technological innovation and the "development of globally harmonized spectrum across both satellite and terrestrial applications."

"The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world," he said.

"Amazon buying Globalstar isn’t just about catching up to Starlink – it’s about positioning for a market that barely exists today but will be enormous by 2030," satellite communications analyst Tim Farrar of TMF Associates told Tech Insider.

The acquisition is expected to close in 2027, pending regulatory approval from agencies such as the US Federal Communications Commission, Tech Insider reported.

Globalstar also must meet specific satellite deployment targets to prove the network expansion is on track.