Ever since Globalstar was in the market for a buyer to remain relevant in the increasingly competitive satellite services landscape, Amazon jumped at the opportunity. By buying Globalstar, Amazon is causing jitters at SpaceX’s Starlink, which has had a virtually unimpeded free run on the global satellite connectivity market. But connectivity is not what should be the worry for Starlink. For Amazon, Globalstar brings satellite credibility, legitimacy, expertise, D2D credentials, and valuable frequency licences and spectrum, without which it would have had to undergo lengthy processes to gain.
Having bypassed the regulatory snarls, Amazon vaults itself into contention for enterprise, government, and IoT customers who demand connectivity where terrestrial networks do not tread. And it is not only Starlink that should be worried. Amazon’s move reshapes the satellite game, especially in the enterprise space. Amazon’s cloud competitors will be noticing another feather in the cap of Amazon that it can bundle into its ever-expanding ecosystem. Applications in IoT, maritime, logistics, remote agriculture, and virtually all the current use cases that Globalstar brings with itself (from monitoring tank fluid and LatAm energy stations to tracking trailers and Transoxianan free-roaming horses) means Amazon can demonstrate expertise in the real world through existing demand.
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GlobalData senior analyst Ismail Patel said: “Amazon has offset negative news surrounding delays in launch and its inability to fulfil the FCC mandate of 1,600+ satellites in space by mid-2026 by acquiring Globalstar. It is bulking up to present itself as not only too big to fail, but as the only necessary and credible toe-to-toe competitor to Starlink. The plan is for Amazon to position Amazon Leo as part of its integrated offering within the wider Amazon and AWS ecosystem. Amazon can leverage Globalstar’s existing use cases to cast the widest net possible for enterprise customers to whom an integrated Amazon offering – covering satellite IoT, connectivity, D2D, can appeal.”
Amazon’s move is not without risk. It is its second-largest acquisition by value to date, valued at $11.57bn. But closure is only expected in 2027, by which time the satellite competitive landscape will have considerably shifted. Consider that Globalstar’s orbital infrastructure is ageing compared to AST SpaceMobile and Starlink, needs integration with the Amazon-branded fleet of antennas, as well as Apple – a 20% stakeholder in Globalstar – retaining 85% D2D capacity for its Apple devices. There are further issues that will need to be answered over the medium term, such as Amazon’s plans on launching orbital data centers, which many in the industry consider to be pie in the sky, as well as Jeff Bezos’s own TeraWave project, which will launch late next year and is expected to target corporates and governments, potentially reducing the addressable market for Amazon.
Patel concludes: “This acquisition hands a win to Amazon, but the trajectory for Amazon is not entirely one of certainty. The next 18 months will reveal whether Amazon Leo can turn its enterprise assets into reliable infrastructure, or whether its star wobbles under its own gravity. The time to win businesses is now, as enterprises are more likely to commit multiyear deals. Amazon has already locked down some customers, such as NASA, Vodafone, AT&T, Delta Air Lines, and others. But for it to be a force to be reckoned with – and not just as another player – will require a lot more effort and investment before it can see success at a scale comparable to its rival Starlink. But if anyone can do it, with its deep pockets, regulatory readiness, cross-sellable customer base, and pre-existing partner alliances, it is Amazon.”
