Amazon has announced an $11.57bn deal to buy Globalstar as it looks to increase its space presence and compete with Elon Musk’s Starlink.

Globalstar operates a satellite constellation in low-Earth orbit for phone service, low-speed data transmission and Earth observation. The firm should enhance Amazon Leo’s satellite broadband services to help it compete with Starlink, which is the current market leader.

In particular, Globalstar’s technology would enable Leo to offer direct-to-device (D2D) services that allow smartphones to connect to space-based 4G and 5G networks without any additional hardware.

“There are billions of customers out there living, travelling and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Amazon’s senior vice-president of devices & services. “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer obsession and innovation, customers can expect faster, more reliable service in more places – keeping them connected to the people and things that matter most.”

Globalstar’s existing satellite fleet and its new satellites with expanded capabilities will operate alongside the Amazon Leo broadband system and Amazon’s planned D2D satellite system, which it aims to deploy in 2028. Once live, Amazon claims it will deliver more advanced voice, data and messaging services to mobile phones than legacy systems.

As part of the deal, Amazon also announced that it had signed an agreement with Apple to power satellite services for supported iPhone and Apple Watch models, allowing users to text emergency services, message friends and family and request roadside assistance.

Globalstar currently partners with Apple to power satellite service on iPhone 14 or later, as well as Apple Watch Ultra 3. The new agreement will see a continuation of this service.

Greg Joswiak, Apple’s senior vice-president of marketing, said: “Since launching more than three years ago, our groundbreaking safety service Emergency SOS via satellite has helped save many lives around the world – from a scout troop stranded on a winter hike in British Columbia to a woman who was airlifted to safety in Colorado after her car rolled down a 250-foot cliff. 

“Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo.”

In the UK, Virgin Media O2 switched on its satellite mobile connectivity in February in a bid to expand data coverage to underserved, primarily rural areas of the UK. It is the first operator in Europe to make use of the technology, although EE also plans to launch a similar service in the latter half of this year.