U.S. regulators have approved Amazon Leo’s approximately $11.5 billion acquisition of satellite operator Globalstar, clearing a major hurdle in Amazon’s effort to build a broader satellite communications network capable of competing across broadband and direct-to-device services.
The Federal Communications Commission approved the transaction Tuesday. The acquisition gives Amazon access to Globalstar’s satellite assets and mobile-satellite spectrum as the company expands its Leo constellation.
The underlying transaction was announced earlier this year, making Tuesday’s regulatory clearance the significant new development. Globalstar’s infrastructure could help Amazon expand Leo beyond conventional satellite broadband and eventually strengthen direct-to-device connectivity.
Amazon has already launched hundreds of Leo satellites and plans a constellation numbering in the thousands as it prepares commercial satellite services.
Globalstar also maintains an important relationship with Apple supporting satellite-enabled communications and safety services on compatible devices. Amazon has agreed to continue supporting those services following the transaction.
The strategic significance extends beyond conventional satellite internet. Direct-to-device technology could allow ordinary mobile devices to communicate through satellites when terrestrial cellular networks are unavailable.
That creates another competitive front involving Amazon, SpaceX and telecommunications operators seeking to connect smartphones directly to satellite networks.
With FCC clearance secured, attention turns to completing the acquisition and integrating Globalstar’s spectrum and infrastructure into Amazon’s broader Leo architecture.
