Amazon (NASDAQ: AMZN) is acquiring Globalstar in a move that signals a deeper push into satellite connectivity, positioning the company against SpaceX and its Starlink network. Globalstar generates roughly $150M–$250M annually and operates a low Earth orbit satellite network used for narrowband communications, including emergency satellite services on iPhones via Apple (NASDAQ: AAPL). The deal underscores growing strategic interest in spectrum as a scarce infrastructure asset.
Sources
https://www.reuters.com/technology/amazon-globalstar-deal https://www.cnbc.com/2024/09/amazon-satellite-strategy-kuiper.html https://www.theverge.com/2022/9/7/23339754/apple-iphone-14-satellite-emergency-sos-globalstar
Key Takeaways
- Amazon is acquiring scarce, globally licensed spectrum—not just a satellite business
- Globalstar’s L-band spectrum is optimized for reliability and direct-to-device communication
- The deal mirrors Amazon’s Whole Foods strategy: acquire a functioning base while building a larger vision
In-Depth
Amazon’s move to acquire Globalstar is less about immediate scale and more about Amazon’s long-term positioning in the race to control global connectivity. Globalstar operates in the L-band spectrum, a range known for its ability to travel long distances and penetrate obstacles—making it ideal for satellite-to-phone communication, as well as remote “edge devices” or IoT which could help Amazon’s AWS cloud service. This is the same infrastructure that enables Apple’s satellite emergency features, highlighting its real-world utility despite the limited bandwidth of Globalstar today.
Unlike high-throughput systems like Starlink, Globalstar’s network is not primarily designed for streaming or broadband. Instead, it excels at low-data, high-reliability use cases such as messaging, tracking, and emergency connectivity. That distinction is critical. Amazon is not buying speed—it is buying coverage, resilience, and regulatory access in a domain where spectrum is scarce and tightly controlled.
A spectrum license, such as the licenses Amazon is now acquiring via Globalstar, is government permission to use a specific slice of the radio frequency spectrum. Think of the air like a highway: different frequencies are lanes, and a license gives you the exclusive right to drive in one of those lanes without interference. Without that structure, signals would overlap and collide, creating chaos—making reliable communication impossible. Therefore, with the spectrum licenses, Amazon has obtained a valuable, limited-access asset that is key to it’s long-term space business.
The revenue is not the point. The foundation is.
The parallel to Whole Foods Market is worth noting. When Amazon acquired Whole Foods in 2017, it didn’t immediately dominate grocery. Instead, it gained a working system—stores, supply chains, and talent—that grounded its broader ambitions. Over time, Amazon iterated across delivery, logistics, and retail formats, using Whole Foods as a stable base.
Globalstar plays a similar role for Amazon’s satellite ambitions. It provides existing infrastructure, spectrum rights, and operational expertise while Amazon continues to build out Amazon Leo and its broader space connectivity vision. Rather than starting from scratch, Amazon now has a functioning entry point into the market.
The implication is clear: this is not a short-term revenue play. It is a strategic acquisition of scarce assets that enable Amazon to participate in a future where connectivity extends to space. Just as Whole Foods anchored Amazon’s physical retail expansion, Globalstar may anchor its push into space-based communications—one iteration at a time.