The Federal Communications Commission (FCC) on Tuesday cleared Amazon's Leo unit to acquire satellite operator Globalstar in a deal valued at $11.5 billion. The approval hands Amazon a larger fleet of satellites and access to valuable wireless spectrum, as the tech giant gears up to offer direct-to-device connectivity that lets regular smartphones link straight to satellites.
Amazon has been building a low Earth orbit (LEO) network, a constellation of satellites that orbit closer to the planet than traditional geostationary satellites, which reduces latency and improves connection speeds. The company says it has invested more than $10 billion in the project and has launched over 300 satellites since April 2025, with plans to reach roughly 3,200 by 2029.
What the deal adds
The Globalstar acquisition is a key piece of that strategy. Globalstar operates its own satellite constellation and holds licenses to spectrum—the radio frequencies used to transmit data—that are particularly well-suited for direct-to-device services. This spectrum is a scarce and valuable resource, and controlling it gives Amazon a stronger foundation to build out its network without relying on third-party agreements.
Direct-to-device is a growing area of the satellite industry. It allows standard smartphones to connect to satellites when cellular towers are out of range, which could be a lifeline in rural areas, during natural disasters, or for travelers in remote regions. Amazon is positioning itself to compete with Starlink, the satellite internet service operated by Elon Musk's SpaceX, which already has a significant head start in the consumer broadband market.
Starlink has been the dominant player in LEO broadband, with thousands of satellites in orbit and a growing subscriber base. Amazon's entry, backed by its massive financial resources and existing cloud and logistics infrastructure, could intensify competition in both consumer broadband and enterprise connectivity.
What it means for investors
For everyday investors, this deal is a signal that Amazon is serious about expanding beyond its core e-commerce and cloud businesses. The satellite network could eventually feed into Amazon Web Services (AWS), offering connectivity solutions to businesses and governments, and potentially open new revenue streams in areas like autonomous vehicles, shipping logistics, and global internet coverage.
However, the satellite business is capital-intensive and unproven at scale for Amazon. The company has already spent more than $10 billion, and the Globalstar deal adds another $11.5 billion. Investors should watch how quickly Amazon can monetize this network and whether it can gain meaningful market share against Starlink, which has years of operational experience.
The FCC's approval removes a major regulatory hurdle, but Amazon still faces technical and competitive challenges. The company will need to launch hundreds more satellites, integrate Globalstar's assets, and convince customers that its service is reliable and cost-effective.
For those tracking the broader space economy, this deal is part of a wave of investment in satellite infrastructure. Other companies are also racing to build LEO networks, and the demand for global connectivity is expected to grow as more devices come online. The outcome of this race could reshape how people access the internet, especially in underserved areas.
As Amazon moves forward, investors will be watching for updates on satellite launches, service rollouts, and any signs of customer adoption. The company's ability to execute on this ambitious plan will determine whether this becomes a profitable venture or a costly detour.
