Chris Forrester — The massive $11.6 billion purchase by Amazon of Globalstar, although much rumored, is now very much on the industry’s agenda. The move has raised many, many questions as well as plenty of positive comments from bankers – some of which will boost their own revenues as they handle the legals and at the same time take good care of the SpaceX initial public offering (IPO).
The bankers and most analysts see the Amazon move described through a 154-page filing – as being highly beneficial for the industry as a whole, and “raising all boats” in terms of market valuations and optimism for the space industry, and in particular the prospects for Direct-to-Consumer (D2C) broadband and telephony.
However, as one analyst pointed out last week: “The Amazon/GSAT deal just told the world that 8.5 MHz of satellite uplink is worth $11.6 Billion. If that’s the floor, then the 25 MHz of Ligado [spectrum] running on the far more advanced AST SpaceMobile Block 3 architecture represents a $30B+ value that Google and Amazon Web Services can access via AST partnerships.” The Amazon/Globalstar deal is scheduled to close in 2027.
Let’s remind ourselves of what the Amazon/Globalstar deal represent. Quilty Space stated: “Amazon gains access to Globalstar’s 24-satellite constellation, existing operations, and most importantly, as we outlined above, its spectrum. Globalstar has about 25 MHz of spectrum that can be partially or fully applied to Direct-To-Device/D2D – 8.725 MHz of L-band (plus a 0.95 MHz sliver shared with Iridium) and 16.5 MHz of S-band. Globalstar’s spectrum is asymmetric — roughly 8 MHz of uplink paired against 16 MHz of downlink — which caps two-way D2D throughput. Closing that gap likely means acquiring additional L-band, making Iridium’s adjacent 1618-1626 MHz allocation is perhaps a clear target. Indeed, Iridium hit a 52-week stock-market high on the Globalstar announcement.”
Quilty snappily highlights the key benefit, saying: “If Apple revived Globalstar, Amazon will turbocharge it.” That turbocharging will extend to potential deals from Amazon Leo with mobile telcos around the world. Globalstar could not do this because of its Apple relationship.
In other words, the industry has another well-heeled player with impressive spectrum assets in the D2D space.
However, there are considerable differences in strategy between SpaceX/Starlink, AST and now Amazon Leo/Globalstar in a growing portfolio of would-be D2D satellite operators.
However, and as a warning of what might come, Finland’s ReOrbit CEO Sethu Saveda Suvanam (speaking at the Washington DC show) said that in 10 years’ time there could be 200 sovereign satellite systems with every nation having its own constellation!
The Key Players
- SpaceX is building a stand-alone system using Starlink and adding Starlink Mobile for D2D.
- AST SpaceMobile has constructed a global wholesale model working with telcos on a revenue sharing of fees for connectivity. AST’s core technological offering – using standard terrestrial MNO spectrum to connect to literally any existing, unmodified 4G or 5G phone – remains completely unchallenged by this deal. AST’s next BlueBird launch is on April 19.
- Amazon and Apple are building a closed, proprietary ecosystem: Apple makes the hardware, Amazon provides the satellite backhaul, and they potentially bypass the traditional telecom provider entirely. It also seems that Amazon+Globalstar will more aggressively target business and commercial users. Globalstar had plans for its own 3,080 constellation. Amazon Leo is promising “mid-2026” for service introduction.
- OneWeb, which is very much focused on business/governmental connections and has little interest in D2C.
- Telesat’s Lightspeed: Canada D2C, and international users especially in markets which seek a degree of independence. Military also a key element in non-US markets. Telesat says the military aspect would “deliver significantly more capacity than all Mil-Ka in orbit today,” and aligns with increasing data requirements of NATO members and allied defense partners.
- Lynk+Omnispace: today a tiny challenger but backed by SES and once the merger is approved SES will boost investment and attack the D2D market with its 640-craft constellation. Lynk CEO Ramu Potorazu (and a former executive with Intelsat and on the Board of SES) confirmed at the recent Washington Satellite 2026 show that Lynk would start a service in mid-2027.
- Viasat and Space42’s Equatys, which will use Emirati cash to jointly invest and develop a 2800-craft system. There will be considerable loyalty from Gulf Arabs, and tapping into Viasat and Thuraya’s existing relationships. There are reports that Equatys will be seeking $1 billion in a cash-raising exercise.
- Iridium has plans for D2D connectivity with Iridium Next.
Investment analysts at Deutsche Bank were highly positive over the Amazon+Globalstar move. “Amazon’s plans to enter D2D means that, if successful, there will be another well-capitalized competitor in the space, which we have to assume will (a) capture some share of the D2D market, and (b) put some level of pressure on market pricing.”
“We continue to think of D2D as a very large market with room for multiple competitors to succeed. There are about 6B mobile lines in service worldwide and about 2.5B people without broadband service,” adds Deutsche Bank.
Analysts at BNP Paribas, in its note to clients, said: “We view the acquisition as a strategic positive that accelerates Amazon Leo’s path to meaningful commercialization, particularly with the addition of D2D capabilities and access to Globalstar’s existing spectrum and infrastructure. The Apple partnership further validates demand and positions Amazon to compete more directly in satellite connectivity, though near-term financial impact is likely limited given the capital intensity and longer deployment timeline. Further, Amazon will be positioned to drive cost synergies between GSAT and Amazon Leo, driving more meaningful profitability earlier.”
But there are challenges ahead: Top of the list is Amazon’s ability to launch its fleet (and that includes Globalstar’s demands on an industry where there are definite bottlenecks). “Amazon has struggled to remain on track with the production and launch of its own constellation and these challenges won’t get solved by the deal,” said Pablo Tomasi, principal analyst of future wireless at Omdia.
Aside from the threat of 200 different systems ten years from now, the confirmation of Amazon Leo + Globalstar, plus the considerable activity from Starlink and AST SpaceMobile, shows that business leaders believe there’s a valuable market from D2C activity.
