FCC approves Amazon Leo’s $11.57B Globalstar deal

The Federal Communications Commission on Tuesday, October 27, approved Amazon Leo's $11.57 billion deal to acquire satellite operator Globalstar, Reuters reported. The approval clears a major regulatory hurdle for Amazon Amazon.com, Inc. ↗ 1.61% as it tries to add direct-to-device phone service to its low Earth orbit broadband network and compete more directly with SpaceX's Starlink.rmb.reuters.com

The agency's Space Bureau approved Amazon Leo's application to acquire about 25 megahertz of Globalstar's internationally harmonized mobile-satellite service spectrum, which concludes the FCC's review of the purchase, according to MLex. The deal adds Globalstar's roughly two dozen satellites to Amazon's existing network of more than 200, Reuters said.mlex.com+1

Carr cites competition

"This FCC authorization is a significant step towards supercharging next-generation connectivity," FCC Chairman Brendan Carr said in a statement, Seeking Alpha reported. "By approving this deal, the FCC has empowered Amazon Leo to deliver fast, next-gen satellite broadband services, increase competition, and help communities stay connected across the country."tradingview.com

The FCC found that the transaction is likely to improve data coverage in unserved and underserved areas, strengthen emergency communications, support growth in industrial and enterprise data services, and lead to more intensive use of mobile-satellite spectrum. The agency also concluded that the deal is unlikely to cause any material harm to the public interest, Cord Cutters News reported. Amazon will take over Globalstar's satellite operations, private 5G business, infrastructure and other assets, according to Seeking Alpha.cordcuttersnews.com+1

A push into satellite-to-phone service

Amazon and Globalstar ↗ 1.23% announced the merger agreement on April 14. Alongside it, Amazon signed a separate deal with Apple ↗ 0.93% under which Amazon Leo would power satellite features on supported iPhone and Apple Watch models, Amazon said at the time. Closing is expected in 2027. It still depends on other conditions, including Globalstar reaching certain milestones for its replacement satellites.press.aboutamazon.com

Amazon Leo has launched more than 300 satellites since April 2025 and plans to have about 3,200 in low Earth orbit by 2029, Reuters reported. In July, the company asked the FCC for permission to deploy up to 5,105 satellites for direct-to-device service, Mobile World Live noted.mobileworldlive.com+1

The approval comes one week after the FCC authorized Globalstar's next-generation C-3 satellite system, which is designed to link directly to smartphones and other mobile devices across the U.S., according to Mobile World Live. Amazon has said the combination will "promote innovation and competition across the space, satellite, and telecommunications sector, and support efforts to close the digital divide globally," according to its announcement.press.aboutamazon.com+1