Amazon now has US regulatory approval to take the one thing its satellite network could not build for itself: spectrum that reaches ordinary phones. The Federal Communications Commission on 27 October approved the transfer of Globalstar’s licences and authorisations to Amazon, finding the deal “likely to benefit the public” and that “no material public interest harms are likely to arise”.
The FCC’s announcement says the transaction “will expand direct-to-device competition, strengthen emergency communications, and improve service in unserved and underserved areas.” Reuters, reporting the approval, put the value of the deal at “$11.57 billion”.
In brief
- What happened: the FCC approved the transfer of Globalstar’s US licences to Amazon, whose satellite arm trades as Amazon Leo.
- Why it matters: the order says Amazon would not otherwise have the mobile-satellite spectrum it needs for direct-to-phone service.
- What’s unknown: when the deal closes. Amazon has not given a date.
Globalstar becomes an Amazon subsidiary
Under the deal, Globalstar “will become a wholly-owned subsidiary of Amazon and operate as an affiliate to Kuiper Systems LLC”, the Amazon company that runs Leo, according to the order. Globalstar’s US subsidiaries keep their corporate identities and their FCC authorisations. The docket for the case, GN 26-134, lists Globalstar’s service links in the 1610-1626.5 MHz and 2483.5-2500 MHz bands among the licences changing hands.
The order also hands Amazon the US market access Globalstar won this month for its 48-satellite C-3 system, which TSN covered when the FCC cleared it. Globalstar had about 811,000 mobile-satellite subscribers worldwide at the end of June, the FCC noted, citing the company’s quarterly filing.
The terms were set out in Amazon’s April announcement. Globalstar shareholders can take $90.00 in cash or 0.3210 Amazon shares for each Globalstar share, with the share option’s value capped at $90.00. Cash elections are capped at 40% of Globalstar’s shares, and the total payout can be cut by up to $110m if Globalstar misses certain operational milestones. At the time, the companies expected the deal to close in 2027, once regulators had approved it and Globalstar had hit milestones for its HIBLEO-4 replacement satellites.
“This brings us a step closer to bringing new connectivity capabilities to customers,” an Amazon spokesperson told Fierce Network, which reported that the spokesperson did not say when the deal would close.
Apple’s satellite features come with the deal
Globalstar’s biggest customer is Apple. Its network powers satellite texting and Emergency SOS on the iPhone 14 and later. Apple accounted for about 63% of Globalstar’s 2025 revenue, the FCC order says, citing Globalstar’s annual report. The order adds that Apple holds a 20% stake in Globalstar, which Amazon says it will acquire once the deal completes.
In April, Amazon and Apple also signed their own agreement for Amazon Leo to power satellite services on supported iPhone and Apple Watch models, including Emergency SOS. Amazon said it would deploy its own next-generation direct-to-device system “beginning in 2028”.
The FCC dismissed the only formal objection. Yippy, a former Globalstar customer, had asked the agency to dismiss the application or attach conditions, as part of a contract dispute that is now in arbitration. The order says a licence transfer “is not the proper forum for resolving private contract disputes”. The one condition the FCC did impose is that Amazon keep to two existing agreements, from 1999 and 2004, between Globalstar and the US Department of War, the Department of Justice and the FBI.
Spectrum, not satellites, is what Amazon is buying
On satellites alone, this is a lopsided deal. The FCC says it has approved 7,736 Amazon satellites, against up to 26 for Globalstar. Amazon told the agency it has committed more than $10bn to Leo, has launched more than 300 satellites since April 2025 and expects to start commercial service by the end of 2026.
What Amazon lacked was the right kind of airwaves. Its licences are for fixed broadband to dishes and terminals. The order says Amazon “holds no L-band, S-band, or other spectrum” that would let a satellite reach a smartphone without special hardware, and that without this deal it “would not have access to MSS spectrum” for the direct-to-device system it has applied to build. That is why the FCC found no competition problem: the two companies sell different services, so the merger removes no rival.
It also explains why the approval was straightforward. Market power was never the hard question; the real tests are whether Amazon can put scarce spectrum to heavier use than a 26-satellite fleet, and how it handles a target that relies on one customer for nearly two-thirds of its revenue. For compliance teams, the security condition is the detail to watch. US national security commitments made in 1999 and 2004 now pass to one of the world’s largest technology companies as an explicit licence condition.
The race Amazon is entering is already crowded. SpaceX is reportedly seeking tens of thousands of US cell sites for Starlink Mobile, and in Europe four operators including Vodafone are exploring a joint bid for satellite-to-phone spectrum. This order covers US licences only. The FCC notes that Globalstar’s system also uses HIBLEO-X satellites licensed by France.
A reconsideration window and Thursday’s spectrum votes come next
The order took effect on adoption, but petitions for reconsideration can be filed within 30 days, which runs to 26 November. Fierce reported that the FCC will vote on Thursday on two more items that would bring spectrum to direct-to-device services. Separately, the new Mystic Alerts Act will let US carriers send alerts to phones by satellite once the FCC has written the rules. The open question for Amazon is the closing date, which in April the companies tied to Globalstar’s replacement satellites hitting their milestones.
Sources
- FCC: Order, Applications of Globalstar, Inc., and Amazon.com, Inc., GN Docket No. 26-134, DA 26-1160 (27 October 2026)
- FCC: “FCC Approves Amazon Leo’s Acquisition of Globalstar” (news release, 27 October 2026)
- FCC: Amazon/Globalstar transaction page, GN Docket No. 26-134
- Amazon: “Amazon to Acquire Globalstar and Expand Amazon Leo Satellite Network” (14 April 2026)
- Reuters via Investing.com: “US agency approves Amazon Leo’s $11.5 billion acquisition of Globalstar” (27 October 2026)
- Fierce Network, Monica Alleven: “FCC gives OK for Amazon Leo’s acquisition of Globalstar” (27 October 2026)
Related stories
- FCC Clears Globalstar’s C-3 Satellite System for Direct-to-Phone Service
- SpaceX Seeks 80,000 US Cell Sites for Starlink Mobile, Bloomberg Says
- Four EU Telcos Explore a Joint Bid for Satellite-to-Phone Spectrum
- Mystic Alerts Act Becomes Law, Adding Satellites to US Phone Alerts
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