Jeff Bezos Just Got a New Boost in His Rivalry With Elon Musk — Amazon Wins FCC Approval for $11.5 Billion Globalstar Deal to Expand Satellite Connectivity
Key takeaways
- Amazon’s FCC‑approved $11.5 billion purchase of Globalstar boosts its satellite network and spectrum, sharpening its rivalry with SpaceX’s Starlink.
- $11.5 billion acquisition price
- 25 MHz of spectrum
- nearly 400 satellites launched by Amazon Leo
What happened
The Federal Communications Commission approved Amazon.com Inc. (NASDAQ: AMZN) to buy Globalstar Inc. (NASDAQ: GSAT) for $11.5 billion, adding about two dozen satellites and 25 megahertz of spectrum to Amazon’s Leo satellite network.
Why it matters
The deal gives Amazon a stronger foothold in satellite broadband and direct‑to‑device services, positioning it to compete with SpaceX’s Starlink. It also expands Amazon’s spectrum holdings, which could lower costs and improve coverage for consumers.
Short-term and longer-term
Short-term. Amazon’s move is likely to tighten the competitive landscape for satellite broadband.
Longer-term. Over the next few months, Amazon’s expanded satellite capabilities could diversify its revenue streams and enhance its cloud and logistics services.
Words on this card
- FCC
- Federal Communications Commission, the U.S. agency that regulates interstate communications
- D2D
- Direct‑to‑device, a satellite service that connects directly to mobile phones and wearables
- Spectrum
- Radio frequency bandwidth that satellites use to transmit data
- Satellite broadband
- Internet service delivered via satellites instead of cables or fiber