Apple is set to revolutionize satellite communication for its users with a significant investment of $1.5 billion in Globalstar. This strategic move aims to expand the satellite services integrated into the latest iPhone models, enhancing connectivity in areas with limited traditional network access.
According to a recent regulatory filing, Apple will contribute $1.1 billion in cash and acquire a 20% equity stake in Globalstar for $400 million. Part of this investment will be directed towards reducing Globalstar's existing debt, paving the way for the deployment of new satellites and the upgrading of ground infrastructure.
The collaboration builds on the initial partnership established in 2022, which introduced the Emergency SOS feature on iPhones, allowing users to send emergency messages via satellite in remote locations. With the new investment, Apple plans to expand this feature to include text messaging, providing more robust and reliable communication options for users worldwide.
Globalstar currently operates 31 satellites and has plans to launch up to 26 additional satellites to bolster its low Earth orbit constellation. This expansion is part of a broader industry trend where major tech and telecom players are investing in satellite-based services to enhance global connectivity. Competitors like Google, T-Mobile, Verizon, and AT&T are also making significant strides in this space, partnering with companies like SpaceX's Starlink and Amazon's Project Kuiper.
Apple's substantial investment not only strengthens its position in the satellite communication market but also underscores the growing demand for reliable connectivity solutions in an increasingly connected world.
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Apple invests $1.5 billion in Globalstar to boost satellite services
cgtn.com
