FCC Approves Amazon’s $11.57 Billion Acquisition of Globalstar
The U.S. Federal Communications Commission (FCC) has approved the license transfer in Amazon Leo’s $11.57 billion acquisition of Globalstar. The FCC stated that it determined the Amazon Leo/Globalstar transaction could benefit the public in multiple ways, including expanding data coverage in unserved or underserved areas, enhancing emergency communication capabilities, and promoting more intensive use of mobile satellite service (MSS) spectrum. An Amazon spokesperson, in a statement to Fierce, expressed gratitude for the FCC’s thorough review and approval of the Globalstar license control transfer, bringing the company closer to delivering new connectivity capabilities to customers. The spokesperson did not specify when the transaction is expected to be completed. L. Barbee Ponder, Globalstar’s General Counsel and Vice President of Regulatory Affairs, also issued a statement thanking the FCC for its swift and efficient approval of the Globalstar domestic license transfer.
The transaction includes approximately 25MHz satellite spectrum
Amazon announced the acquisition of Globalstar in April this year. The deal enables Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit (LEO) satellite network and extend cellular coverage to customers in areas unreachable by terrestrial networks. The transaction includes approximately 25 megahertz of internationally coordinated mobile satellite spectrum. Amazon also reached an agreement with Apple, where Amazon Leo will provide satellite services for iPhones and Apple Watches, including emergency SOS via satellite. In July, Amazon Leo submitted an application to the FCC, planning to launch up to 5,105 LEO satellites for D2D services. The application is still under review. Unlike SpaceX, which aims to build its own terrestrial network to compete with U.S. mobile carriers, Amazon stated its intention to collaborate with mobile network operators (MNOs) and other partners to achieve its vision.
Before approving the Globalstar transaction, the FCC had already authorized the non-geostationary C-3 system of Globalstar to enter the U.S. market last week. The C-3 system was approved to serve the U.S. as part of a global network consisting of 48 satellites distributed across 12 orbital planes, with four satellites per plane. The FCC noted that it is taking proactive measures in multiple areas to ensure U.S. leadership in the D2D (Device-to-Device) field. Earlier this month, the FCC’s Bureau of Space Communications granted SpaceX the authorization to build, launch, and deploy 15,000 D2D satellites; in April, the FCC had also approved AST SpaceMobile’s 248-satellite system. Additional spectrum is also in progress. At Thursday’s meeting, the FCC will vote on two proposals to bring more spectrum to D2D: one proposing to auction the 1675-95 MHz and 2020-2025 MHz bands, and another seeking to open approximately 500 megahertz of additional wireless spectrum for D2D services.
The destination of XCOM RAN remains undetermined
The FCC’s approval of Amazon’s acquisition of Globalstar leaves the implications for XCOM RAN somewhat unclear. XCOM RAN is a private 5G solution introduced under the leadership of Globalstar CEO Paul Jacobs. Tamer Kadous, head of Globalstar’s XCOM RAN business unit, recently told Fierce that Amazon may have multiple internal teams suited for this business. He stated that discussions on post-acquisition integration for XCOM RAN are ongoing but no final decisions have been made regarding its future direction. Analysts earlier this year told Fierce that XCOM could help AWS revive its private cellular business, which was discontinued in 2025, or be used for Amazon’s own warehouses and fulfillment centers.