Amazon has agreed to acquire Globalstar for US$11.6 billion, a move that signals consolidation in the satellite connectivity market and marks a pivotal shift that Starlink will likely watch closely.
Announced on April 14, the acquisition transfers Globalstar’s satellite operations, infrastructure, assets, and mobile satellite services spectrum licences with global authorizations to Amazon. These resources will be integrated into Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit network.
D2D enables standard smartphones to connect directly to satellites without specialized hardware. That capability is the critical element of the transaction: whoever controls the spectrum for D2D effectively controls access to every mobile user beyond terrestrial network coverage.
Until now, Amazon Leo—the rebranded successor to Project Kuiper—was primarily positioned as a broadband provider for enterprises, airlines, and governments. Amazon’s customer list already includes Delta Airlines, AT&T, Vodafone, Australia’s National Broadband Network, and NASA, giving Leo a strong enterprise foundation.
But the consumer mass market is centered on D2D services, and Globalstar delivers that capability plus decades of spectrum rights. Those licences would have otherwise required lengthy regulatory processes to secure independently, so the acquisition accelerates Amazon’s entry into the consumer satellite connectivity market.
Spectrum is the real prize
The US$11.6 billion deal caps a strategic pivot that began in late 2025 when Amazon rebranded Project Kuiper as Amazon Leo. Where Kuiper focused largely on residential and enterprise broadband, Leo now pursues a two-pronged strategy: high-speed broadband and an integrated D2D offering.
By bringing Globalstar into Amazon Leo, Amazon immediately gains 24 operational satellites, a global ground station network, and, crucially, Globalstar’s S-band spectrum licences. That spectrum is the essential “digital real estate” for sending data directly to unmodified smartphones, and Globalstar’s existing regulatory approvals with the FCC and international bodies provide Amazon an expedited path to offering D2D services.
The agreement with Apple adds another dimension. Amazon and Apple have separate arrangements for Amazon Leo to provide satellite services for iPhone and Apple Watch features such as Emergency SOS via satellite. Globalstar had powered that capability previously; the acquisition transfers and extends that relationship, securing one of the world’s most valuable consumer hardware platforms as an anchor partner for Amazon Leo.
What does this mean for mobile operators?
Amazon Leo’s D2D system is designed to help mobile network operators extend voice, text, and data services to areas beyond terrestrial coverage. Amazon plans to deploy a next-generation D2D satellite system beginning in 2028. On paper, this complements mobile network operators’ services by providing broader coverage options.
In practice, Amazon will control a fallback network layer carriers may increasingly rely on to meet coverage obligations, deliver IoT connectivity across remote infrastructure, and satisfy government universal service requirements. That dynamic could reshape how carriers approach network planning and regulatory compliance.
Starlink still holds a substantial lead in constellation size and user base—more than 10,000 satellites in orbit and over nine million users—but the acquisition narrows the strategic gap. Previously, Amazon Leo’s missing elements were spectrum and D2D capability; both are now in Amazon’s portfolio, transforming Leo from primarily a broadband provider into a full connectivity contender.
FCC Chairman Brendan Carr described the agency as “very open-minded” about the acquisition and noted its potential to create a genuine competitor to SpaceX in direct-to-cell services. Regulatory approval is expected, and the deal is scheduled to close in 2027.
The satellite internet market is no longer dominated by a single clear front-runner. With Amazon Leo now holding Globalstar’s spectrum, Apple’s partnership, and a growing enterprise customer base, the central question for telecom operators—and for Starlink—is how quickly Amazon will scale these capabilities and compete across consumer and enterprise markets.
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