The US Federal Communications Commission has approved Amazon Leo’s $11.5 billion acquisition of mobile-satellite operator Globalstar. The regulator announced the decision, clearing the path for Amazon to integrate Globalstar’s assets into its growing space-based infrastructure.
The deal is structured to allow Leo to deliver direct-to-device service. Amazon stated previously that the acquisition would expand its space-based footprint and support its growing satellite network. The FCC noted in a press release that the combination of the two companies’ assets would enhance Leo’s entry into the direct-to-device segment.
Expanding Satellite Coverage
The Federal Communications Commission described the merged entity as a stronger satellite operator capable of offering fixed and mobile services. These services would target residential, business, and government customers. The regulator added that the transaction is likely to benefit the public by enhancing data coverage in underserved areas.
Globalstar provides the satellite connectivity that powers Apple’s emergency services on compatible iPhones and Apple Watches. Apple held a 20 percent stake in Globalstar before the takeover. As part of the new arrangement, Leo will power satellite services for supported iPhone and Apple Watch models.
Leo’s Growing Network
Leo, a rival to SpaceX’s Starlink, has been active in recent months. The company recently announced that it has 400 satellites in orbit. Last month, it revealed that it had launched high-quality satellite internet service in Uzbekistan. The company is also teaming up with Delta to eventually bring satellite internet to flights.
Amazon recently added six new Arianespace launches to its schedule. The company aims to have more than 3,000 low-earth orbit satellites up in the near future. This target remains well short of SpaceX’s 11,000 satellites.
Source: Engadget
