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Apple to Spend $1.5 Billion in Globalstar

CIO Insider Team | Saturday, 2 November, 2024
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Apple has agreed to spend roughly $1.5 billion in Globalstar, a business that offers communications services to users of the newest iPhones through its network of satellites.

To maintain its position as one of just two companies offering satellite services to phone customers, Apple wants Globalstar to expand its offerings.

Globalstar's recent SEC filing states that it will build ground infrastructure and launch a new satellite constellation as part of a new "mobile satellite services" network with Apple's $1.5 billion investment.

As part of a "Extended MSS Network," it will also expand the licensing of its global mobile services, and Apple will pay in advance for users to use certain of these services.

Owners of the iPhone 14, iPhone 15, and iPhone 16 models can currently use Globalstar's satellites to contact emergency services via Emergency SOS while they are not within their mobile networks.

Apple recently added text messages to this list. Apple now provides these services for free and manages them via a network of Globalstar satellites and ground stations.

In addition to voice conversations and video chats, the next big thing in satellite services is the ability to communicate data, for example, through messaging apps like Signal and WhatsApp.

To maintain its position as one of just two companies offering satellite services to phone customers, Apple wants Globalstar to expand its offerings.

In August, Google and Skylo teamed up to provide Pixel 9 series owners with emergency satellite messages. Carriers haven't advanced past successfully testing messaging through partner satellite networks, and other attempts by the phone industry to provide satellite services have failed.

With the exception of T-Mobile, US carriers have not yet implemented their collaborations with satellite providers to offer users coverage outside terrestrial 4G LTE and 5G networks, despite their announcements years ago. The business, which initially collaborated with SpaceX's Starlink in 2022, received last-minute federal authority to use emergency satellite texting and deliver alerts to hurricane Helene and Milton victims in October.

In May, Verizon, which had previously partnered with Amazon's satellite provider Project Kuiper in 2021, announced a new alliance with AST SpaceMobile. In May, AT&T confirmed a commercial arrangement with AST SpaceMobile, and in 2022, the two firms announced their own cooperation. In September, AST SpaceMobile launched its first five commercial satellites, which will eventually serve carrier clients.



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