Apple To Invest $1.5b In Globalstar To Boost Satellite Coverage, Buys 20% Stake For $450m

At the beginning of the year, US-based mobile telecommunications company T-Mobile and SpaceX announced that SpaceX’s Falcon 9 rocket launched the first set of Starlink satellites with Direct to Cell capabilities. This move was based on a deal struck in 2022.

On a more recent note, SpaceX’s Starlink also came to the rescue, as the company realigned dozens of Starlink satellites to offer high-speed internet access to North Carolinians affected by Hurricane Helene, at the behest of the United States government.

Now, iPhone maker Apple is taking strong steps to solidify its satellite coverage capabilities.

This was according to an SEC filing dated October 29, 2024, by Globalstar, an American telecommunications company that operates a satellite constellation in low Earth orbit for satellite phones, low-speed data transmission and earth observation.

As per the filing, Apple and Globalstar entered an agreement on October 29, which will see Apple purchase 400,000 Class B Units of Globalstar, representing a 20% equity interest in the company at $400 million, which will be paid upon closing.

The date of closing is scheduled to take place on or about November 5, 2024, depending on closing conditions.

However, the total investment made by Apple in Globalstar could rise to $1.5 billion, as Apple plans an expansion of satellite coverage services rendered. As such, Globalstar will receive $1.1 billion as prepayment, which will be used to improve satellite infrastructure.


Globalstar already supports Apple’s satellite service, by enabling users to send emergency text messages, iMessage reactions and more. This partnership dates back to 2022 when the two companies signed an agreement that would allow Apple users to send emergency messages from remote areas.

The new investment comes with a revision of the current Services Agreements and new related agreements that will focus on expanding services over a new mobile satellite services (MSS) network. This includes “a new satellite constellation, expanded ground infrastructure and increased global MSS licensing (the Extended MSS Network).

“The Updated Services Agreements also provide for certain service fees of $30 million annually to be accelerated.”

As such, Globalstar will allocate 85% of its network capacity of its satellite services to Apple.

Despite the purchase of a 20% stake, Globalstar will retain control of the board of managers of the company and continue to operate and maintain its assets.

Furthermore, Globalstar will retain 100% of all terrestrial, MSS and other revenue.

Ahead of this, Globalstar will also use part of the cash proceeds to settle some of its debts, which includes a principal outstanding amount of $219 million plus make-whole fees of $13 million.

The move comes as technology companies are realizing the value of low-orbit satellites to foster communications, whether for data, calls or messages.

However, without Apple or Globalstar providing a comment on the specifications of the new agreement, it’s unclear if the new service will bring data exchange services (which power apps such as WhatsApp) in addition to voice calls and video chatting.

Do you think this move by Apple will inspire other technology companies to follow suit?

Let us know in the comments below!