FCC Approves Amazon Leo's $11.5 Billion Acquisition of Satellite Operator Globalstar

The Federal Communications Commission has approved Amazon Leo's $11.5 billion acquisition of satellite operator Globalstar. The core asset in the deal is not Globalstar's aging orbital hardware, but its 25 megahertz of mobile-satellite spectrum, which allows Amazon to beam service directly to smartphones.[1][4]

The regulatory approval, finalized on Tuesday, October 27, clears the path for Amazon to challenge SpaceX's Starlink in the emerging direct-to-device market. It marks the second-largest acquisition in Amazon's history, trailing only its $13.7 billion purchase of Whole Foods in 2017.[4][5]

Under the approved terms, Amazon absorbs Globalstar's two dozen active satellites, its private 5G business unit, and its extensive infrastructure. More importantly, Amazon secures the legal right to operate across internationally harmonized frequencies without having to lease access from terrestrial mobile carriers.[3][6]

The Spectrum Advantage

Spectrum is the binding constraint for any satellite internet constellation. Without dedicated frequencies, operators must negotiate complex sharing agreements with ground-based telecom networks to connect with consumer devices. Globalstar's 25 megahertz of licensed spectrum gives Amazon an independent foundation to build upon.[1][2]

The acquired spectrum operates in specific, globally recognized bands—1610 to 1618.725 MHz for Earth-to-space links and 2483.5 to 2500 MHz for space-to-Earth links. This allocation is exceptionally difficult to acquire on the open market today, driving the massive premium Amazon agreed to pay.[2]

Amazon Leo has launched nearly 400 satellites since April 2025, which remains a fraction of Starlink's dominant active constellation. The Globalstar acquisition acts as a regulatory shortcut, providing the licenses needed to make Amazon's future satellites talk to unmodified cellular phones.[5]

The FCC framed the approval in sweeping, optimistic terms. FCC Chairman Brendan Carr stated that the authorization empowers Amazon to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country.[1][4]

However, the actual direct-to-device capability remains a future promise rather than a shipping product. While Amazon plans to roll out standard commercial satellite services by the end of 2026, its separate application to launch 5,105 dedicated direct-to-device satellites is still pending before the agency.[3][5]

The Apple Connection

The acquisition also disentangles a complex web of existing corporate partnerships. Globalstar currently powers the Emergency SOS and Find My features on Apple's iPhones and Apple Watches, providing critical safety infrastructure for millions of users.[5]

The technology giant invested $1.5 billion in 2024 to secure a 20 percent equity stake in the satellite operator. This massive capital injection funded the rapid expansion of Globalstar's dedicated iPhone communication services over the past two years.[5]

Under the approved transaction, Amazon will acquire Apple's equity stake entirely. To prevent service disruptions, Amazon has signed a binding agreement with Apple to maintain the existing satellite-based safety features for iOS users. The FCC noted this continuity as a key public benefit.[1][5]

This arrangement turns a potential conflict into a strategic alliance. It keeps Apple's massive user base anchored to infrastructure that Amazon will soon own, while ensuring Amazon has a guaranteed revenue stream as it builds out its broader network.[5]

Integrating Private 5G

Beyond the orbital assets, Amazon is absorbing XCOM RAN, Globalstar's private 5G business. This specialized unit focuses on deploying high-capacity wireless networks for industrial environments, warehouses, and enterprise campuses. The technology came to Globalstar when telecommunications veteran Paul Jacobs took the helm.[3]

The integration of XCOM RAN suggests Amazon intends to bundle satellite connectivity with localized 5G networks for its enterprise cloud customers. This hybrid approach would create a comprehensive edge-computing offering that competitors currently lack, blending Amazon Web Services with dedicated wireless infrastructure.[3]

Tamer Kadous, general manager of the XCOM RAN unit, noted that post-close integration planning is actively ongoing. He indicated that multiple divisions within Amazon are evaluating how best to absorb the private 5G technology into their existing product lines.[3]

The Direct-to-Device Race

The broader context for the acquisition is a massive capital race to eliminate mobile dead zones globally. Technology companies are pouring billions into direct-to-device architectures, which bypass traditional cell towers entirely to connect users in remote areas.[3][5]

SpaceX has already spent heavily on spectrum rights and carrier partnerships for its own direct-to-device push. The FCC recently granted SpaceX authorization to deploy a 15,000-satellite constellation specifically for this purpose, intensifying the pressure on Amazon to secure its own frequencies.[3]

Amazon's pitch to regulators leaned heavily on closing the digital divide. The company promised to enhance data coverage in unserved areas, strengthen emergency communications capabilities, and foster growth in industrial data services. The FCC ultimately agreed that the merger served these goals.[1][6]

The agency concluded that the transaction would create a stronger satellite operator capable of offering fixed and mobile services, without material public-interest harms. The approval follows a related decision last week granting Globalstar market access for its non-geostationary C-3 system.[1][2]

The transaction is expected to officially close in 2027, pending final administrative hurdles. Globalstar shareholders can elect to receive either $90 in cash or 0.321 shares of Amazon common stock for each Globalstar share they currently hold.[4][6]

Ultimately, the $11.5 billion price tag reflects the extreme scarcity of licensed spectrum rather than the value of Globalstar's current hardware. Amazon is buying the legal right to compete in the next era of mobile connectivity, regardless of the upfront cost.[4][6]