The US Federal Communications Commission has approved Amazon’s $11.5 billion acquisition of Globalstar, clearing a major regulatory hurdle in the e-commerce giant’s effort to build a satellite communications network capable of challenging SpaceX’s Starlink.
The deal gives Amazon Leo access to Globalstar’s existing satellite fleet and mobile-satellite spectrum, strengthening its ability to offer broadband connectivity and direct-to-device services. The approval comes as technology companies commit billions of dollars to satellite infrastructure in a market increasingly shaped by demand for connectivity beyond the reach of conventional mobile networks.
FCC Chairman Brendan Carr said the regulator’s decision would support competition and expand connectivity across the United States.
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“The FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country,” Carr said.
Amazon welcomed the decision, saying it “brings us a step closer to bringing new connectivity capabilities to customers.”
Amazon has committed more than $10 billion to Leo and has launched nearly 400 satellites since April 2025. The company plans to deploy thousands of satellites in low Earth orbit by 2029 and is preparing to introduce commercial satellite services by the end of 2026, according to the FCC.
Amazon also sought regulatory approval in July for a constellation of up to 5,105 additional satellites, underscoring the scale of infrastructure required to compete with established satellite operators.
SpaceX’s Starlink operates a network of more than 11,000 satellites, giving it a substantial lead in deploying the infrastructure needed to provide satellite broadband at scale. Amazon’s acquisition of Globalstar helps narrow that gap by adding operational assets and spectrum, though building a competitive network will still require further investment, launches, and customer adoption.
Globalstar’s value to Amazon extends beyond its existing satellites. Its mobile-satellite spectrum and experience in satellite communications could help Amazon Leo expand into direct-to-device connectivity, a market that aims to connect smartphones and other consumer devices directly to satellites rather than relying exclusively on terrestrial cellular towers.
The technology could improve connectivity in remote areas, support communications where conventional mobile coverage is unavailable, and provide additional options during emergencies. It also opens a potential route for satellite operators to serve existing mobile-device users without requiring them to purchase dedicated satellite broadband equipment.
Globalstar already supports satellite-based safety features for Apple devices, including Emergency SOS and Find My on compatible iPhones and Apple Watches. Amazon previously announced an agreement with Apple to continue providing those services following the acquisition.
That relationship is commercially significant because it gives Globalstar an established role in the smartphone ecosystem. Rather than building an entirely new consumer proposition from scratch, Amazon will acquire an operation already supporting services used by Apple customers.
Apple invested approximately $1.5 billion in Globalstar in 2024 to finance the expansion of its iPhone communication capabilities. The transaction also gave Apple a 20% equity stake in the satellite operator. Apple accounted for about 63% of Globalstar’s revenue last year, according to the supplied figures, making the relationship central to the company’s existing business.
The FCC said Amazon plans to acquire Apple’s stake as part of the transaction.
That concentration creates both an opportunity and a consideration for Amazon. The Apple relationship provides an established commercial connection, but it also means Globalstar’s historical revenue has depended heavily on one customer. Continuing the existing services could help preserve that business while Amazon develops additional applications and expands the network’s reach.
Globalstar said late last year that a new network under development, backed by Apple, would expand its constellation to 54 satellites, including a small number of backup satellites, from the roughly two dozen currently in operation. The extent to which those plans and related infrastructure will be integrated into Amazon Leo’s wider deployment will be important to the combined network’s development.
Satellite Competition Moves Beyond Broadband
The acquisition comes as the satellite communications industry broadens its ambitions beyond providing internet access to homes, businesses and remote locations. Direct-to-device technology creates a potential market for satellite operators among ordinary smartphone users, while mobile and fixed broadband services could help them reach customers underserved by traditional networks.
The FCC is also preparing to consider a new auction of wireless spectrum intended to support direct-to-device services, with a vote scheduled for Thursday to advance the process. The auction could influence how satellite and terrestrial operators secure the spectrum needed to expand connectivity services.
Spectrum access is essential because satellite operators face technical and regulatory constraints when seeking to provide services across large geographic areas and alongside existing wireless networks. Access to suitable frequencies can strengthen an operator’s ability to deliver services, but spectrum alone does not guarantee coverage, performance or commercial success.
Amazon’s strategy therefore combines several requirements: launching enough satellites, obtaining appropriate spectrum, maintaining reliable service and building partnerships that can bring satellite connectivity to consumers. Globalstar adds assets in more than one of these areas, potentially accelerating Amazon’s entry into direct-to-device communications.
Still, the acquisition does not immediately put Amazon on equal footing with Starlink. SpaceX has a much larger deployed constellation and an established satellite broadband business. Amazon must demonstrate that its network can deliver reliable performance at a competitive cost while converting its infrastructure spending into recurring revenue.
The economics will depend partly on utilization. Satellite networks require substantial upfront investment, while their commercial returns depend on attracting enough customers and supporting services that justify operating and replenishing the constellation. Direct-to-device offerings may widen the customer base, but they also introduce technical, regulatory, and partnership requirements distinct from conventional satellite broadband.