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Jeff Bezos Just Got a New Boost in His Rivalry With Elon Musk — Amazon Wins FCC Approval for $11.5 Billion Globalstar Deal to Expand Satellite Connectivity
The Federal Communications Commission (FCC) on Tuesday approved Amazon.com Inc.’s (NASDAQ:AMZN) $11.5 billion acquisition of Globalstar Inc. (NASDAQ:GSAT) on Tuesday, strengthening the company’s satellite communications business as it prepares to challenge Elon Musk’s Space Exploration Technologies Corp. (NASDAQ:SPCX) Starlink in broadband and direct-to-device connectivity.
FCC Backs Amazon’s Satellite Expansion Plans
Amazon Leo has launched nearly 400 satellites since April 2025 and plans to deploy thousands by 2029. The acquisition adds approximately two dozen Globalstar satellites and valuable mobile-satellite spectrum to its growing network.
FCC Chair Brendan Carr welcomed the agreement, saying the transaction would bring "even more competition, coverage, and capacity."
"The FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected all across the country."
Amazon, which has committed over $10 billion to Leo, expects to begin commercial services by year-end. The company previously outlined plans to expand its satellite constellation as it accelerates deployment.
Apple Partnership Strengthens Ambitions
Globalstar currently supports Apple Inc.’s (NASDAQ:AAPL) satellite-enabled Emergency SOS, Find My and other connectivity features. Apple invested approximately $1.5 billion in Globalstar in 2024, securing a 20% equity stake that Amazon plans to acquire.
Amazon has outlined plans for up to 5,105 direct-to-device satellites, with deployments beginning in 2028.
The companies also agreed to maintain satellite connectivity for supported iPhones and Apple Watches.
Amazon said the FCC approval "brings us a step closer to bringing new connectivity capabilities to customers."
What Amazon’s Expansion Means For SpaceX
SpaceX retains a substantial advantage, operating more than 11,000 Starlink satellites. The FCC also recently authorized another 15,000 satellites for its expanding direct-to-device network.
However, Amazon’s acquisition strengthens its spectrum position and creates another potential competitor in mobile connectivity.
Musk previously dismissed suggestions that Amazon’s competition drove Starlink price cuts.
"This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience," Musk said in February. He added, "The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world."
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