Apple commits $1.5 billion to Globalstar to enhance satellite services
Apple has pledged $1.5 billion to satellite provider Globalstar to improve its iPhone communication services, with the goal of boosting its satellite capabilities.
TroibNews 
Apple is making significant moves to bolster its satellite communication capabilities by committing up to $1.5 billion to Globalstar, a satellite service provider. This investment aims to enhance iPhone communication services, as detailed in a regulatory filing released on Friday. The funds will be directed towards developing new satellites and upgrading ground infrastructure, thereby providing Apple users with improved connectivity options.
As part of the terms, Apple will contribute $1.1 billion in cash and take a 20-percent equity stake in Globalstar for an additional $400 million. A segment of this investment will be used to reduce Globalstar's existing debt, according to the company. The agreement, anticipated to finalize on Tuesday, stipulates that Globalstar must dedicate 85 percent of its network capacity solely for Apple's use.
This collaboration is an extension of their earlier partnership from 2022, which permitted iPhone users to send emergency messages via satellite in remote locations without standard mobile coverage.
Presently, users of the latest iPhone models, including the iPhone 14, iPhone 15, and iPhone 16, can access Globalstar's satellites for emergency services through the Emergency SOS feature, made available at no extra charge. Recently, Apple has enhanced this feature to include the ability to send text messages, thus broadening communication options for its users.
Neither Apple nor Globalstar has provided details regarding the specific future services that this latest investment will enable. However, it is expected that Apple's funding will facilitate Globalstar in launching a new satellite constellation and improving its ground infrastructure, contributing to the establishment of a new "mobile satellite services" network, as indicated in the company's recent SEC filing. Globalstar currently operates 31 satellites and has plans to order up to 26 additional satellites to upgrade and replace its existing low Earth orbit constellation.
This investment by Apple is indicative of a larger trend within the tech and telecom sectors toward offering satellite-based services in areas with limited access to conventional networks. Other major companies, including Google, T-Mobile, Verizon, and AT&T, are also making advancements in satellite collaborations, intensifying competition in the realm of space-based connectivity.
For instance, T-Mobile has formed a partnership with SpaceX's Starlink to enable users to send emergency messages during recent hurricanes. Meanwhile, Verizon and AT&T are collaborating with Amazon's Project Kuiper and AST SpaceMobile, respectively, to enhance their satellite connectivity offerings.
Olivia Brown contributed to this report for TROIB News
As part of the terms, Apple will contribute $1.1 billion in cash and take a 20-percent equity stake in Globalstar for an additional $400 million. A segment of this investment will be used to reduce Globalstar's existing debt, according to the company. The agreement, anticipated to finalize on Tuesday, stipulates that Globalstar must dedicate 85 percent of its network capacity solely for Apple's use.
This collaboration is an extension of their earlier partnership from 2022, which permitted iPhone users to send emergency messages via satellite in remote locations without standard mobile coverage.
Presently, users of the latest iPhone models, including the iPhone 14, iPhone 15, and iPhone 16, can access Globalstar's satellites for emergency services through the Emergency SOS feature, made available at no extra charge. Recently, Apple has enhanced this feature to include the ability to send text messages, thus broadening communication options for its users.
Neither Apple nor Globalstar has provided details regarding the specific future services that this latest investment will enable. However, it is expected that Apple's funding will facilitate Globalstar in launching a new satellite constellation and improving its ground infrastructure, contributing to the establishment of a new "mobile satellite services" network, as indicated in the company's recent SEC filing. Globalstar currently operates 31 satellites and has plans to order up to 26 additional satellites to upgrade and replace its existing low Earth orbit constellation.
This investment by Apple is indicative of a larger trend within the tech and telecom sectors toward offering satellite-based services in areas with limited access to conventional networks. Other major companies, including Google, T-Mobile, Verizon, and AT&T, are also making advancements in satellite collaborations, intensifying competition in the realm of space-based connectivity.
For instance, T-Mobile has formed a partnership with SpaceX's Starlink to enable users to send emergency messages during recent hurricanes. Meanwhile, Verizon and AT&T are collaborating with Amazon's Project Kuiper and AST SpaceMobile, respectively, to enhance their satellite connectivity offerings.
Olivia Brown contributed to this report for TROIB News
