The Federal Communications Commission has approved Amazon Leo's $11.5 billion acquisition of mobile-satellite operator Globalstar, the regulator announced. The deal is intended to expand Leo's space-based footprint and enable direct-to-device service across its satellite network, Amazon has said.
In a press release, the FCC said the companies' complementary assets could strengthen Amazon Leo's entry into the direct-to-device segment and create a stronger satellite operator able to offer fixed and mobile services to residential, business and government customers. The regulator also said the transaction is likely to benefit the public by improving data coverage in underserved areas.
Globalstar may be unfamiliar to many consumers, but its services are already in use: the company provides Apple's emergency satellite connectivity for compatible iPhones and Watches. Apple held a 20 percent stake in Globalstar before the takeover. Under the deal, Leo will power satellite services for supported iPhone and Apple Watch models.
Leo competes with SpaceX's Starlink and has been active on several fronts. The company recently announced it has 400 satellites in orbit, and last month it revealed it had launched high-quality satellite internet service in Uzbekistan. It is also teaming up with Delta to eventually bring satellite internet to flights.
Amazon recently added six new Arianespace launches and aims to have more than 3,000 low-earth orbit satellites in place in the near future, a figure still well short of SpaceX's 11,000 satellites.
The FCC's approval gives Amazon Leo a regulatory green light in the US market as it works to build out direct-to-device capabilities, a segment where satellite operators are competing to connect consumer devices beyond traditional coverage areas.
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