Globalstar will be acquired by Amazon for $11,57 billion. This deal will allow the company to increase its mobile and satellite connectivity services. Amazon announced the deal on Tuesday, saying it supported its long-term vision of space-based communications services.
It also intends to accelerate the development of Amazon Leo, a satellite project. The company aims to introduce a brand new system by 2028.
Starlink is a strong competitor
Amazon is now in direct competition against Starlink. It already has a vast satellite network.
Starlink operates more than 10,000 satellites active in the space. The company also has over 10,000,000 customers in the world. SpaceX’s service generates substantial revenue from subscriptions.
Amazon Leo expansion plans
Andy Jassy, the chief executive of Amazon, said that Leo has already attracted a lot of interest. He named several partners.
Including Delta Air Lines JetBlue AT and T Vodafone DIRECTV Latin America Australia National Broadband Network NASA.
Once the satellite system is fully operational, these agreements will support future satellite-based services.
Globalstar: What Amazon Gets from Globalstar
Amazon is taking over the Globalstar infrastructure in several locations around the world. The facilities include those in Ireland, the United States of America, Brazil, France and others.
Globalstar was founded in 1991, as a company that provided satellite communication services. Apple has been working with Globalstar since 2022.
Apple watches and iPhones use satellites to provide emergency SOS functions.
Apple owns 20 percent of Globalstar. Amazon has committed to continuing support for the SOS Service on Apple devices.
Position and Outlook of the Market
SpaceX has also been preparing to list on the stock exchange. The company’s value could be more than $1 trillion.
Amazon needs to significantly increase its satellite production to achieve long-term goals.
