Oct 27 (Reuters) - The Federal Communications Commission said on Tuesday it approved Amazon Leo’s $11.5 billion deal to acquireGlobalstar as the retail giant's satellite arm seeks to build a communications network to compete with SpaceX's Starlink.
Amazon Leo has launched nearly 400 satellites since April 2025 and aims to deploy thousands of satellites in Earth's low orbit by 2029. Through the deal, Amazon adds Globalstar's two dozen satellites and its mobile-satellite spectrum. Amazon, which has committed to investing more than $10 billion in Leo, is preparing to roll out its commercial satellite services by the end of 2026, the FCC said.
The FCC said the companies’ assets will boost Amazon Leo’s entry into the direct-to-device market and allow the satellite operator to offer fixed and mobile services.
"The FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country," FCC Chair Brendan Carr said.
Tech companies are pouring billions of dollars into capturing the lucrative market for satellite-based connectivity as they race to compete with Starlink's network of more than 11,000 satellites.
Amazon praised the approval, saying it "brings us a step closer to bringing new connectivity capabilities to customers." Amazon in July sought approval from the FCC for up to 5,105 satellites.
Direct-to-device satellite technology allows smartphones and other devices to connect directly to satellites.
The FCC will vote on Thursday to advance a new auction of wireless spectrum to boost "direct-to-device" services.
Globalstar currently powers satellite-based safety features such as Emergency SOS and Find My for Apple's iPhone and Apple Watch users. Amazon said earlier that it has signed an agreement with Apple to continue providing those services.
Apple invested about $1.5 billion in Globalstar in 2024 to fund the expansion of its iPhone communication services, in a deal that also gave the tech giant a 20% equity stake in Globalstar. Apple accounted for about 63% of Globalstar's revenue last year and Amazon plans to acquire Apple's stake, the FCC said.
Globalstar said late last year that a new, Apple-backed network under development would expand its footprint to 54 satellites, including a small number of backups, from the two dozen currently.
(Reporting by David Shepardson, Editing by Nick Zieminski and Sanjeev Miglani)
