Amazon’s new $11.57 billion agreement to acquire satellite firm Globalstar is a major step toward reshaping the satellite broadband market and intensifying competition with Starlink. That competition is good news for businesses, but even better news for taxpayers and consumers who stand to benefit from lower prices, better service, and faster innovation.
The deal will add two dozen satellites to Amazon Leo’s existing network of more than 200. According to Amazon, that is just the start. The company intends to deploy some 3,200 satellites in low Earth orbit (LEO), setting the stage for a full-scale rollout of its satellite internet service beginning in 2026.
Globalstar’s satellite network focuses on direct-to-device, or D2D, connections, which allows it to work reliably for low-data connections directly to mobile devices. D2D connections are essential for powering emergency services and delivering connectivity in areas of limited cellular coverage because they remove the need for devices to connect to ground-based towers. Amazon hopes to deploy D2D by 2028 as it competes with Starlink, whose SpaceX unit is partnering with carriers such as T-Mobile to develop its own D2D services.
Starlink, owned by Elon Musk, has about 10,000 satellites in LEO, and 9 million existing users. Experts say the Globalstar purchase will help Amazon in its efforts to catch up to its satellite rival.
"Amazon has been falling behind Starlink on satellite broadband. Acquiring Globalstar allows them to catch up on their D2D spectrum position, and leap ahead on D2D deployment," Armand Musey, president & founder of Summit Ridge Group, told Reuters.
Amazon and Apple, which also owns a small stake of Globalstar, announced an agreement for Leo to power satellite services for iPhones and Apple watches, including Emergency SOS via satellite.
Amazon is framing this move as part of a broader effort to expand reliable connectivity to customers in areas beyond the reach of traditional networks. The company emphasizes that combining Globalstar’s established satellite expertise with Amazon’s focus on customer experience and innovation will help deliver faster, more consistent service across more locations.
The Globalstar acquisition will likely close next year, following regulatory approvals that include a required “OK” by the Federal Communications Commission (FCC). FCC Chairman Brendan Carr has said he is “very open-minded” to the acquisition.
The FCC is now considering a request by Amazon for a 24-month extension to deliver on an agreement to deploy 1,600 satellites as part of its constellation. As of now, Amazon expects to deploy about 700 satellites by July 30 and requests an extension to 2028 to reach the milestone of 1,600 satellites. In all, Amazon is planning to launch 3,236 satellites into orbit as part of its Leo constellation.
The Taxpayers Protection Alliance (TPA) supports the FCC granting the extension because the interim milestone will be missed largely due to circumstance beyond Amazon’s control. Although Amazon has purchased more launch capacity than any commercial operator in history, it is producing satellites faster than partners can launch them. Amazon notes that development timelines for next-generation launch vehicles have extended beyond initial projections, contributing to the Leo deployment delays.
Strict enforcement of the initial milestone would stop further launches and only hurt consumers, since it would interrupt deployment and delay expanded broadband service. Amazon has said that even though it would miss the initial milestone, it remains on track to meet its final deployment milestone. Granting this relief is consistent with precedent set by the FCC in similar cases involving operators with less deployment progress.
The Leo satellite constellation will serve rural and underserved communities for which it is too expensive to service via fiber infrastructure. Allowing Amazon to move forward with its efforts would connect unserved and underserved Americans to internet services at a fraction of the cost to taxpayers of other alternatives, such as failed government-owned broadband networks.
