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FCC approves Amazon Leo’s US$11.5 billion Globalstar acquisition

Amazon says the deal is intended to expand its satellite network and enable direct-to-device connectivity.

By Mei Ling Tan

Illustration of communications satellites orbiting Earth
Photo: Yahoo

The US Federal Communications Commission has cleared Amazon Leo’s acquisition of Globalstar, a mobile-satellite operator, for US$11.5 billion. Amazon previously said the purchase would extend Leo’s reach in space and support plans to connect its satellite network directly to devices.

The FCC said the combination could strengthen Leo’s ability to provide both mobile and fixed services for households, businesses and government customers. The regulator also said it expected public benefits from improved data coverage in areas with limited service.

Globalstar supplies the satellite connectivity used by Apple’s emergency features on compatible iPhones and Watches. Under the deal, Leo will provide satellite services to supported models of both devices.

Leo, which competes with SpaceX’s Starlink, recently reported having 400 satellites in orbit and announced the launch of satellite internet service in Uzbekistan. It is also working with Delta on plans to provide internet access aboard flights. Amazon has added six Arianespace launches and is targeting more than 3,000 satellites in low-earth orbit in the near future, compared with SpaceX’s 11,000 satellites.

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