Apple’s $1.5B Satellite Deal with SpaceX: Building the Future of iPhone Connectivity

Apple’s investment in Globalstar is bringing the tech giant one step closer to transforming iPhone connectivity through satellites. With a $1.5 billion deal announced last month, Apple has secured a 20% stake in Globalstar and the funds needed to build a new mobile satellite service (MSS) network that will boost the connectivity features on Apple devices. Now, SpaceX is joining the project as the launch provider, setting the stage for a massive satellite deployment in 2025.

The partnership first made waves in November 2022 when Apple committed to Globalstar’s satellite network, initially focusing on building out MSS capabilities through Globalstar Licensee LLC—a subsidiary of Globalstar that operates the company’s MSS satellite constellation. As part of the expanded deal, Globalstar’s filings with the Federal Communications Commission (FCC) and the SEC reveal that Apple’s investment includes $1.1 billion dedicated to network expansion, satellite construction, and launch expenses, alongside an additional $400 million in equity for Apple. This latter investment gives Apple a 20% stake in Globalstar’s satellite division, adding another layer to its expanding influence in the satellite communications sector.

Under the terms of the Updated Services Agreement, Globalstar will use the funds not only to enhance its MSS network but also to retire existing debt. The planned satellite upgrades will rely on MSS spectrum within the L and S bands, which will be crucial for Apple’s upcoming iPhone satellite features, bringing enhanced connectivity directly to consumers. As Globalstar continues to build out its next-generation MSS constellation, the satellites are scheduled to launch aboard SpaceX rockets, with a launch window spanning from April to September 2025.

This deal has multiple performance incentives, with payments contingent upon licensing approvals and milestone achievements. SpaceX, which has dominated the direct-to-cell satellite market with its Starlink constellation, brings its proven launch reliability to the table, positioning Globalstar’s satellite expansion for success. The addition of Globalstar’s network to the LEO ecosystem promises Apple users a more seamless satellite-based communication experience, even in remote areas where traditional cellular networks fall short.

With Globalstar preparing for the 2025 launch window, Apple’s $1.5 billion investment underscores its commitment to revolutionizing mobile connectivity. As the smartphone giant deepens its stake in satellite technology, the extended MSS network could set a new standard for mobile communications—and bring Apple’s satellite ambitions closer to reality.

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