Apple has announced plans to invest approximately $1.5bn in satellite communications company Globalstar to expand iPhone satellite services.
Specifically, the agreement between Apple and Globalstar involves a $1.1bn cash injection and a 20% equity stake for Apple, valued at $400m.
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Of this funding, more than $200m is designated to reduce Globalstar’s existing debt.
The transaction is anticipated to be finalised during the first week of November 2024.
Apple’s investment in Globalstar is not its first; the tech giant has already spent hundreds of millions on services that facilitated the 2022 launch of the iPhone emergency satellite texting feature.
iPhone 14, 15, and 16 model owners can access emergency services via Globalstar’s satellite network when outside mobile coverage areas.
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By GlobalDataThis capability has recently been extended to include text messaging.
Apple provides these services through a combination of Globalstar satellites and ground stations, currently offering them at no cost.
With the new funding, Globalstar will initiate the deployment of a new satellite constellation and bolster its ground infrastructure as part of a newly designated “mobile satellite services” network.
This expansion includes increasing its global mobile services licensing through an “Extended MSS Network,” with Apple prepaying for some customer services.
According to the filing, Apple has rights to 85% of Globalstar’s network capacity.
Globalstar’s existing satellite fleet consists of 31 satellites, and the company has plans to add up to 26 more to refresh and enhance its low Earth orbit constellation, reported CNBC.
In a separate development, in August 2024, Google collaborated with Skylo for the emergency SOS feature on the Pixel 9 series, enabling users to connect with emergency services even when cellular and Wi-Fi coverage is unavailable.
Skylo, a non-terrestrial network service provider, supports the satellite service for the Pixel 9 series with an infrastructure and partnerships with multiple satellite operators.
