Amazon has agreed to acquire Globalstar in a deal worth $11.57 billion (approximately ₹1.08 lakh crore), marking a major push into the rapidly evolving satellite internet sector.
The acquisition is seen as one of Amazon’s biggest strategic moves to strengthen its position in space-based connectivity and compete with rivals in the low-Earth orbit (LEO) satellite market.
Boost to Amazon’s satellite ambitions
Amazon has been developing its own satellite internet initiative, Project Kuiper, aimed at providing high-speed internet globally through a constellation of LEO satellites.
The company plans to deploy over 3,200 satellites by 2029, with a regulatory requirement to launch roughly half of them by July 2026. However, progress has been slower than expected, making the Globalstar acquisition a strategic necessity.
Globalstar currently operates more than 24 satellites and has agreements to add over 50 more, significantly boosting Amazon’s existing infrastructure.
Direct-to-device connectivity advantage
One of Globalstar’s key strengths lies in its Direct-to-Device (D2D) technology, which enables satellites to connect directly to smartphones without requiring specialised hardware like dishes or routers.
This technology is already being used for services such as emergency messaging and location sharing on devices from Apple, including iPhones and Apple Watches.
As part of the deal, Amazon will continue its partnership with Apple to support satellite connectivity services, expanding its reach into consumer devices.
Competition with Starlink intensifies
The acquisition is widely seen as Amazon’s attempt to close the gap with Starlink, operated by SpaceX and led by Elon Musk.
Starlink currently dominates the sector, with over 10,000 satellites in orbit and services available in around 150 countries. In comparison, Amazon has deployed only a fraction of its planned network so far.
Industry experts note that while the Globalstar deal strengthens Amazon’s satellite capacity and spectrum access, it does not fully address the company’s biggest challenge—launching satellites quickly and at scale.
Launch challenges remain a hurdle
Despite its ambitions, Amazon faces logistical constraints, including rocket shortages and delays in deployment. The company has even relied on SpaceX’s Falcon 9 rockets for some launches, highlighting its dependence on competitors.
Amazon founder Jeff Bezos’s space venture, Blue Origin, is developing the New Glenn rocket, which could eventually support large-scale satellite deployment. However, the rocket is still undergoing testing following its debut flight in early 2025.
Experts suggest that unless Amazon can accelerate its launch capabilities, the gap with Starlink may persist despite increased investment.
Strategic implications for global internet access
The deal is expected to close next year, subject to regulatory approvals and deployment milestones. If successful, it could significantly enhance Amazon’s ability to deliver internet services in remote and underserved regions.
By combining Globalstar’s infrastructure with its own ambitions, Amazon aims to position itself as a serious contender in the future of global connectivity.
Conclusion
Amazon’s $11.57 billion acquisition of Globalstar marks a pivotal moment in the satellite internet race. While the deal strengthens its technological and operational capabilities, the ultimate success of its ambitions will depend on overcoming launch challenges and scaling deployment—factors that will determine whether it can truly rival Starlink’s dominance.