Apple will invest up to USD 1.5 billion in satellite provider Globalstar, an American telecommunications company that operates a constellation in low Earth orbit (LEO) and provides satellite connectivity services, to enhance iPhone communication services, Globalstar said in a regulatory filing on Friday.
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Apple-Globalstar Agreement
On October 29, 2024, Apple and Globalstar entered into updated Service Agreements under which Globalstar will deliver expanded services to Apple over a new mobile satellite services (MSS) network. This network includes a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing, collectively termed the Extended MSS Network. The Extended MSS Network will be owned by Globalstar and its subsidiaries, collectively the Globalstar SPE, and operated by the company, the filing said.
Under the agreement, Apple will prepay for certain services provided by Globalstar to Apple's end users through the Extended MSS Network and will hold a passive equity position in Globalstar SPE.
Enhances Connectivity for iPhone Users
Globalstar will retain 100 percent of all terrestrial, MSS, and other revenue, continuing to allocate 85 percent of its network capacity to deliver Satellite Services to Apple across existing and new satellites, while using the remaining capacity to service its other MSS customers.
Under the funding agreement, Apple will commit USD 1.1 billion in cash and purchase 20 percent equity in Globalstar for USD 400 million. Globalstar said it would use a portion of the funds to pay down debt.
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Expected Closing Date of the Deal
This move is the latest in a series of partnerships between space firms and mobile service providers aiming to deliver satellite-based connectivity to customers in regions with limited network access.
This collaboration builds on the 2022 launch of an emergency messaging feature by Apple and Globalstar for iPhone users in areas with limited connectivity. The deal is expected to close on Tuesday, November 5, 2024, subject to the satisfaction of closing conditions.
