Apple is embarking on a new chapter in satellite communications with a substantial investment of $1.5 billion in Globalstar, a leading satellite provider. This bold move is set to enhance iPhone communication services by expanding satellite connectivity options for users around the globe.
Announced in a regulatory filing on Friday, the deal involves Apple injecting $1.1 billion in cash and acquiring a 20% equity stake in Globalstar for $400 million. A portion of this investment will help alleviate Globalstar’s existing debt. In return, Globalstar will allocate 85% of its network capacity exclusively to Apple. The partnership is expected to finalize on Tuesday.
This collaboration marks a significant expansion of the partnership initiated in 2022, where Apple and Globalstar introduced satellite-enabled emergency messaging for iPhone users in remote areas lacking traditional mobile network access. Currently, owners of the latest iPhone models—iPhone 14, iPhone 15, and iPhone 16—can utilize the Emergency SOS feature to connect with emergency services via satellite at no extra cost. Recently, Apple extended this feature to include text messaging, offering users more comprehensive communication tools in critical situations.
While details about future services remain under wraps, Apple’s investment will empower Globalstar to deploy a new constellation of satellites and upgrade its ground infrastructure. According to Globalstar’s recent SEC filing, this will lead to the creation of a new “mobile satellite services” network. Globalstar currently operates 31 satellites and has commissioned up to 26 new satellites to enhance and replace its existing low Earth orbit fleet.
Apple’s strategic move underscores a growing trend among tech and telecom giants to provide satellite-based services, bridging connectivity gaps in underserved regions. Companies like Google, T-Mobile, Verizon, and AT&T are also venturing into space-based connectivity solutions. T-Mobile, for instance, has collaborated with SpaceX’s Starlink to send emergency messages during recent hurricanes, while Verizon and AT&T have partnered with Amazon’s Project Kuiper and AST SpaceMobile, respectively.
Reference(s):
Apple invests $1.5 billion in Globalstar to boost satellite services
cgtn.com
