In today's increasingly competitive telecommunications sector, satellite-based internet and direct device connection (D2D) technologies are coming to the forefront. In this context, Amazon announced its intention to acquire Globalstar for approximately $11.57 billion as part of its growth objectives in the D2D space.
As part of the agreement, Globalstar's satellite operations and infrastructure, as well as certain frequency licenses, will be transferred to Amazon. Existing and future satellites will continue to operate in an integrated manner with Amazon's satellite internet network called Leo. Thus, Amazon will focus on developing the D2D system aimed at providing direct satellite connectivity, especially for mobile devices.
D2D System and Future Plans
The company's plans include launching this system in 2028; thus, users are expected to be able to send messages, make voice calls, and connect to data even outside cellular coverage areas. This strategic move is seen as an effort to strengthen Amazon's position in the satellite internet market, where Starlink currently leads.
Additionally, Elon Musk's SpaceX is currently the largest player in this field. However, through its collaboration with Apple, Amazon's Leo will continue to support satellite features used in iPhones and Apple Watches. These features include emergency messaging and location sharing functionalities.
The agreement will need to go through the approval process of the U.S. Federal Communications Commission (FCC), and the transaction is expected to be completed around 2027.