Amazon's Ambitious Bid to Acquire Globalstar and Challenge SpaceX's Starlink
By Financial Times
AI Summary
In a strategic move to bolster its satellite-based Internet services, Amazon is eyeing the acquisition of Globalstar, a company in which Apple invested $1.5 billion in 2024 for a 20% stake. This investment required Globalstar to allocate 85% of its network capacity to Apple for satellite texting beyond cellular coverage. While Globalstar has been in talks with SpaceX, Amazon is advancing its own satellite initiative, Leo, despite being significantly outnumbered by SpaceX's 10,000 satellites with its own 180. Amazon aims to launch 1,600 satellites but faces delays due to launch capacity shortages, seeking a two-year extension from the FCC. By mid-year, Amazon plans to have 700 satellites in orbit and has secured deals with JetBlue and Delta for in-flight Internet services starting in 2027 and 2028. CEO Andy Jassy views Leo as a key opportunity for Amazon's growth. Globalstar's financial performance shows a revenue increase to $273 million, with a modest operating income of $7.4 million in 2025.
Key Concepts
Satellite Internet is a type of Internet connection that uses satellite technology to provide access, often in remote or rural areas where traditional broadband services are unavailable.
A satellite constellation is a group of artificial satellites working together as a system to provide coverage over a large area, often for communication or navigation purposes.
Category
TechnologyOriginal source
https://arstechnica.com/tech-policy/2026/04/amazon-is-trying-to-buy-globalstar-to-compete-with-spacexs-starlink/More on Discover
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