Apple invested $1.1 billion in satellite provider Globalstar

Apple announced the Emergency SOS satellite calling feature back in the iPhone 14 series in 2022. For this purpose, the infrastructure of the American satellite service provider Globalstar was used. As part of the new initiative, Apple invested $1.1 billion in Globalstar to expand satellite infrastructure capacity. Additionally, Apple acquired a 20% stake in Globalstar in an equity deal valued at $400 million.

Image source: GSMArena.com

With iOS 18, Apple announced two-way messaging via satellite beyond cellular coverage. This feature is available on iPhone 14 and later from supported carriers in the US and Canada.

Emergency SOS initially offered two years of free service, which was later extended for another year. This means that early iPhone 14 customers have support until November 2025. It remains to be seen whether Apple will start charging iPhone 14 series users for access to satellite messaging after this date.

Under the new agreement, effective Oct. 29, 2024, Globalstar will provide Apple with “expanded services across the new MSS mobile satellite services network, including a new satellite constellation, expanded ground infrastructure, and expanded global MSS licensing.” The expanded MSS network will be owned and operated by Globalstar.

Apple will be required to pay upfront fees for certain services that Globalstar will provide to Apple end users using the enhanced MSS network and will be a passive shareholder in Globalstar. Globalstar will own the network assets required for the expanded MSS network and will not engage in commercial activities.

Globalstar will retain control of Globalstar’s board of directors and will continue to operate and maintain its assets and licenses. Globalstar will retain 100% of all terrestrial, MSS and other revenues and will continue to dedicate 85% of its network capacity to providing Apple satellite services through existing and new satellites, and use the remaining capacity to serve its other MSS customers.

Apple’s investment is expected to significantly increase the ability of Globalstar’s satellite constellation to service requests from iPhone users.