Amazon Takes Steps to Compete with Starlink Through $11 Billion Acquisition of Globalstar Satellite Company
Amazon is enhancing its satellite initiatives through a $11 billion acquisition of Globalstar, positioning itself to compete with Starlink’s global leadership.
Amazon is intensifying its efforts in space-based connectivity by planning to invest $11.57 billion in the acquisition of satellite company Globalstar, a strategic decision designed to compete directly with Elon Musk’s Starlink network.
On Tuesday, the announcement revealed that Amazon will gain access to thousands of satellites positioned in low-Earth orbit via its Amazon Leo project, which has been in development for several years as a key component of the company’s long-term satellite internet strategy.
Amazon announced that the acquisition is in line with its larger vision for space-based communications and confirmed its plans to launch a next-generation satellite system by 2028.
This action positions Amazon directly against Starlink, which has swiftly grown since its inception in 2019 and currently leads the global satellite internet market.
Starlink, managed by SpaceX, boasts over 10,000 active satellites and serves well over 10 million customers globally, establishing a considerable advantage in the industry.
In contrast, Amazon Leo has approximately 200 satellites currently in orbit and will need to scale quickly to achieve its goal of establishing a significant global constellation.
Even Globalstar’s current fleet of approximately 50 satellites highlights the extent of expansion required for Amazon to bridge the gap with its competitor.
SpaceX, the parent company of Starlink, is gearing up for a public listing this year, with projections suggesting a valuation that could surpass $1 trillion, heightening the competition within the commercial space sector.
Amazon chief executive Andy Jassy announced that the Leo project has successfully established partnerships with prominent organizations such as Delta Air Lines, JetBlue, AT&T, Vodafone, DIRECTV Latin America, Australia’s National Broadband Network, and NASA, awaiting full deployment.
The agreement encompasses Globalstar’s infrastructure at various sites, including facilities in the United States, Ireland, Brazil, France, and California.
Globalstar, established in 1991, now boasts a market valuation of approximately $10 billion and offers satellite communications services, featuring emergency connectivity options utilized by Apple devices.
Apple, having acquired a 20% stake in Globalstar in 2024, continues to depend on the company for its emergency SOS service via satellite, which Amazon has stated will remain operational under the new arrangement.
Amazon has confirmed that it has reached an agreement with Apple to keep the SOS functionality available on iPhones and Apple Watches.
The competition in the satellite race is intensifying, as new participants continue to emerge. Blue Origin, the space company established by Amazon founder Jeff Bezos, is working on its satellite internet system, TerraWave, with plans to launch a minimum of 5,400 satellites by 2027 to cater to enterprise customers around the world.
