FCC approves Amazon Leo’s $11.5bn Globalstar acquisition
The US Federal Communications Commission has approved Amazon Leo’s $11.5 billion acquisition of satellite operator Globalstar. Amazon says the deal will expand its satellite network and enable direct-to-device services, while the FCC expects it to improve coverage in underserved areas.
Globalstar provides emergency satellite connectivity for compatible Apple iPhones and Watches, and Apple held a 20 per cent stake in the company before the acquisition. Amazon Leo will continue powering satellite services for supported Apple devices. Leo has 400 satellites in orbit and aims to deploy more than 3,000, compared with SpaceX’s 11,000.
In short
- FCC approves Amazon Leo’s $11.5 billion Globalstar deal.
- The acquisition supports direct-to-device satellite services.
- Globalstar’s Apple emergency connectivity will continue.
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The case for
The acquisition could help Amazon Leo expand coverage more quickly by combining Globalstar’s satellite infrastructure and expertise with Amazon’s resources, bringing connectivity to underserved areas and supporting direct-to-device services. Continuing Globalstar’s emergency service for compatible Apple devices could preserve an existing safety benefit while enabling further investment and competition in satellite communications.
The case against
A larger Amazon Leo network could concentrate more influence over satellite connectivity in one company, potentially weakening competition or leaving users and device makers with fewer alternatives over time. The FCC’s expectation of better coverage does not by itself establish how widely services will be available or affordable, and the acquisition raises questions about whether existing emergency services and access for Apple users will remain dependable as the network changes.
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Originally published by Engadget as “FCC clears Amazon Leo to acquire mobile-satellite operator Globalstar”.