Amazon buys Globalstar satellite constellation

Amazon Leo logo

As part of an effort by Amazon to make its Leo internet constellation more competitive with SpaceX’s Starlink constellation, the company has just completed a deal for about $11 billion to acquire the Globalstar satellite constellation, which includes Globalstar’s partnership with Apple and its Iphones.

The Seattle-based company’s agreement to acquire the satellite operator behind Apple’s iPhone Emergency SOS feature promises to give it a new constellation of operating satellites, a key slice of mobile spectrum, and Apple as a flagship partner.

…Under a separate long-term agreement announced along with the deal, Amazon Leo will power satellite features on future iPhone and Apple Watch models, including Emergency SOS, messaging, Find My location sharing, and roadside assistance. Amazon will also continue supporting the Apple devices that already rely on Globalstar’s existing network.

In other words, Amazon’s Leo internet constellation is now primed to also provide extensive cell phone service, service that at the moment appears superior to the cell service that Starlink can offer.

Or not. Amazon is playing catch-up, with Starlink operational and owning the market with millions of signed-up customers. It needs to offer a superior product to convince people to eithe buy it or switch to it. This deal is part of that effort.

SpaceX gets launch contract from Globalstar

As it appears right now to be the only American rocket company capable of taking on new launch contracts, SpaceX today was awarded a new launch contract from Globalstar to launch its third generation set of satellites.

The press release is not clear about the number of satellites or launches involved, but either way the deal signals SpaceX’s continuing dominance. For larger satellites it has no real competitors. Not only are its launch prices the cheapest, none of its competitors are capable of adding new customers to their launch manifests. In fact, those competitors, ULA, Arianespace, and Blue Origin, are having trouble simply getting their rockets off the ground on a regular basis.

This situation however is likely to change by two years, assuming the new rockets being developed by Rocket Lab, Stoke Space, and Relativity finally begin flying.

A dispute over launch pricing between ArianeSpace, the launch company, and Globalstar, the satellite company.

A dispute over launch pricing between Arianespace, the launch company, and Globalstar, the satellite company.

The article only quotes an executive from Arianespace, who suggests Globalstar has been having troubles making payments. I wonder instead if maybe Globalstar has been balking at Arianespace’s prices (knowing there are other companies that can do it cheaper) and has been holding out for a price cut.