Amazon said yesterday it will acquire Globalstar in a $11.57 billion deal, bolstering its fledgling satellite business as it tries to catch up with Elon Musk’s Starlink. Through the deal, Amazon adds Globalstar’s two dozen satellites to its existing network of more than 200.

According to a Reuters report yesterday, tech companies are pouring in billions of dollars to capture the lucrative market for satellite-based connectivity, but it will be a tall order to match Starlink’s 10,000-unit-strong network.

Amazon has been working to ramp up its network by deploying about 3,200 satellites in Earth’s low orbit by 2029, with roughly half required to be in place by a July regulatory deadline. It is also preparing to roll out its satellite internet services later this year.

Globalstar’s satellite network is designed for reliable, low-data connections directly to mobile devices, or direct-to-device (D2D). The technology removes the need for devices to connect to ground-based cellular towers, making them crucial in powering emergency services and delivering connectivity in areas with limited cellular coverage.

Meanwhile, the Amazon statement said the deal will enable Amazon Leo, which aims to rival Musk’s Starlink, to extend cellular coverage. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch1, including Emergency SOS via satellite.

The new capabilities are part of Amazon’s long-term vision for space-based connectivity, and Amazon plans to work with mobile network operators (MNOs) and additional partners to deliver on that vision and extend reliable, high-speed connectivity to customers, no matter where they are in the world.

“There are billions of customers out there living, traveling, and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Senior Vice President of Devices & Services, Amazon.

“By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer-obsession and innovation, customers can expect faster, more reliable service in more places—keeping them connected to the people and things that matter most. We’re excited to support Apple users through the Leo D2D system, and look forward to working with mobile network partners to help extend coverage to every corner of the planet,” Panay added.

Globalstar is a leading mobile satellite services operator, a pioneer in non-geostationary orbit (NGSO) satellites and D2D technology, and a provider of critical and emergency communications to customers around the world.

As part of the agreement, Amazon will acquire Globalstar’s existing satellite operations, infrastructure, and assets, including MSS spectrum licenses with global authorizations. Combining Globalstar’s spectrum and established MSS capabilities with the scale, performance, and reach of Amazon Leo will enable Amazon to deliver continuous connectivity for consumer, enterprise, and government customers around the world.

“We have long believed low Earth orbit satellite constellations offer the most effective path to truly connect users and devices anywhere and anytime,” said Paul Jacobs, CEO, Globalstar, “For more than 30 years, Globalstar has executed on this vision through sustained, long-term investment in technological innovation, operational excellence, and development of globally harmonized spectrum across both satellite and terrestrial applications. The combination with Amazon Leo will advance innovations in digital connectivity that will benefit our customers and advance us toward a more intelligent, continuously connected world.”

Beginning in 2028, Amazon Leo will deploy its own next-generation D2D satellite system, allowing Amazon to deliver more advanced voice, data, and messaging services to mobile phones and other cellular devices. The Leo D2D system will offer substantially higher spectrum use and efficiency than legacy direct-to-cell systems, which translates into faster speeds and better performance for customers, the Amazon statement claimed.