Full Breakdown
FCC Clears Amazon Leo’s $11.5 B Purchase of Globalstar
By Drooid · · How we work
In this breakdown
01
Core Event
On October 27 the Federal Communications Commission approved Amazon Leo’s acquisition of Globalstar for about $11.5 billion. The deal transfers roughly 25 MHz of Globalstar’s mobile-satellite service (MSS) spectrum and its two-dozen low-Earth-orbit (LEO) satellites to Amazon Leo, expanding its direct-to-device (D2D) network.
02
Background & Context
Amazon Leo, Amazon’s satellite broadband unit, is building a LEO constellation to compete with SpaceX’s Starlink. By 2025 the unit had launched nearly 400 satellites and pledged over $10 billion to reach “thousands” of satellites by 2029. Globalstar’s assets include a D2D partnership with Apple that powers Emergency SOS and Find My on iPhone and Apple Watch, serving more than 780,000 devices in over 120 countries. Apple invested about $1.5 billion in Globalstar in 2024, taking a 20 percent stake that generated roughly 63 percent of Globalstar’s prior-year revenue.
The acquisition is part of an industry race to secure MSS spectrum—frequencies allocated for satellite communication with mobile devices—essential for large-scale D2D services. Competitors such as SpaceX, AST SpaceMobile and private-5G players are also seeking spectrum and regulatory clearance.
03
Timeline
- April 14 2026: Merger agreement announced ($11.57 billion).
- May 26 2026: FCC transfer-of-control application filed.
- June 4 2026: Comment cycle opened; pleading deadline July 6.
- July 6 2026: Comment deadline passed.
- August 18 2026: Amazon Leo filed a separate D2D application for up to 5,105 satellites.
- October 5 2026: Additional comment deadline for the D2D application.
- October 27: FCC approved the Globalstar acquisition.
- October 29: FCC to vote on a proposed auction of additional D2D spectrum.
- October 30 2027: Certification deadline for Amazon Leo to confirm construction of 1,616 satellites under a waiver.
04
Data & Statistics
- Purchase price: $11.5 billion (? €10.3 billion).
- Spectrum transferred: ? 25 MHz of MSS spectrum (L-band ~1.6 GHz; S-band ~2.4 GHz).
- Globalstar fleet: ~ 24 LEO satellites (plus a planned 48-satellite C-3 system).
- Apple stake: 20 percent; 63 percent of prior-year revenue.
- Amazon Leo constellation: ~ 400 satellites launched since 2025; > 1,000 spacecraft manufactured.
- Projected D2D launch: 5,105 satellites pending FCC approval, with service expected in 2028.
05
Official Statements & Responses
Amazon Leo confirmed a continued agreement with Apple to provide satellite-based emergency services for current and future iPhone and Apple Watch models.
06
Criticism & Opposition
Yippy, a former Globalstar partner, filed comments opposing the deal, citing an ongoing commercial dispute. The FCC dismissed the petition, treating the issue as private arbitration rather than a public-interest matter.
07
Why It Matters
The acquisition gives Amazon Leo exclusive rights to MSS spectrum, allowing deployment of D2D services without relying on terrestrial carrier permissions—a structural advantage over Starlink’s Direct-to-Cell approach, which uses T-Mobile’s licensed bands. Ownership also grants Amazon global interference rights, simplifying worldwide deployment.
In addition to satellite broadband, the deal brings Globalstar’s Band 53 (2483.5–2495 MHz) terrestrial spectrum, positioning Amazon Leo to offer private 5G enterprise networks—a capability currently dominated by major U.S. carriers.
08
Verbatim Quotes
- “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
- “Amazon has been falling behind Starlink on satellite broadband,” — Armand Musey, president and founder of Summit Ridge Group