Amazon is set to buy satellite company Globalstar in a deal worth $11.57 Billion. The move will strengthen Amazon's low Earth orbit satellite project, Kuiper, which will compete with Elon Musk-led SpaceX's Starlink. Globalstar runs a network of 24 satellites and this system will now work with Amazon's own plans to offer direct phone to satellite connection.
This deal did not come as a surprise, as talks between the two companies were reported earlier. With this move, Amazon aims to build a strong network that can connect mobile users even in areas with no signal. At the same time, SpaceX has been working closely with telecom companies to offer similar services. The race to control this new market is heating up, as both companies are trying to expand their reach and bring satellite connectivity closer to daily use.
In a statement, Panos Panay, Senior Vice President of Devices & Services, Amazon said, “There are billions of customers out there living, travelling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide. By combining Globalstar's proven expertise and strong foundation with Amazon's customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most. We're excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet.”
Paul Jacobs, CEO, Globalstar adds, “We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime. For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence, and development of globally harmonised spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”
Along with its deal with Globalstar, Amazon has also teamed up with Apple to support satellite features on iPhones and Apple Watches. Globalstar already works with Apple to run satellite services on newer devices like the iPhone 14 and later models, as well as the Apple Watch Ultra 3.
This service will help users stay connected even when there is no mobile network. People can send emergency messages, contact friends and family, ask for help on the road, and share their location through satellite.
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