- Amazon Leo clears a key FCC hurdle on its Globalstar deal and picks up harmonized MSS spectrum for D2D
- The FCC says the deal will expand coverage in unserved and underserved areas and strengthen emergency communications
- Amazon is also getting XCOM RAN, Globalstar’s private 5G business
Amazon Leo has received Federal Communications Commission (FCC) approval as part of its $11.57 billion acquisition of Globalstar, which includes about 25 megahertz of internationally harmonized mobile-satellite spectrum.
Amazon announced in April that it was purchasing Globalstar in a deal that enables Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit (LEO) satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks.
In addition, Amazon and Apple reached an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite. In July, Amazon Leo filed an application with the FCC to launch a constellation of up to 5,105 LEO satellites for D2D. That application remains pending.
Whereas SpaceX says it’s building its own terrestrial network to compete with U.S. mobile carriers, Amazon has said it plans to work with mobile network operators (MNOs) and additional partners to deliver on its vision.
FCC: Transaction benefits public
The FCC said it determined the Amazon/Globalstar transaction is likely to benefit the public by enhancing data coverage in unserved or underserved areas, strengthening emergency communications capabilities and promoting more intensive use of mobile-satellite service (MSS) spectrum.
“We appreciate the FCC's thorough review and approval of the transfer of control of Globalstar's licenses. This brings us a step closer to bringing new connectivity capabilities to customers," an Amazon spokesperson said in a statement provided to Fierce.
The spokesperson did not say when the transaction is expected to close.
Globalstar also expressed gratitude. “We appreciate the FCC moving quickly and efficiently to approve the transfer of Globalstar’s domestic licenses as part of its merger with Amazon,” said L. Barbee Ponder, general counsel and vice president of Regulatory Affairs for Globalstar, in a statement.
Globalstar’s C-3 system gets OK
The FCC’s approval of the Globalstar deal comes after the agency last week granted Globalstar’s request for U.S. market access for its non-geostationary C-3 system. The C-3 system is authorized to serve the U.S. as part of a global network of 48 satellites arranged in 12 orbital planes, with four satellites per plane.
The FCC pointed out that it’s taking aggressive actions across multiple fronts to ensure America’s leadership in D2D. Earlier this month, the Space Bureau granted SpaceX authorization to build, launch and deploy a 15,000-satellite D2D constellation, in addition to the FCC’s authorization in April for AST SpaceMobile’s 248-satellite system.
More spectrum is on the way, too. At its meeting on Thursday, the FCC will vote on two items that bring more spectrum to D2D. One proposes an auction of the 1675-95 MHz and 2020-2025 MHz bands and the other seeks to open up about 500 megahertz of additional wireless spectrum that can be used for D2D services.
Globalstar’s XCOM RAN is part of Amazon acquisition
What does the FCC’s approval of Amazon Leo’s acquisition of Globalstar mean for XCOM RAN, the private 5G solution that came to Globalstar when CEO Paul Jacobs took the helm?
It’s still a bit of a mystery. However, Tamer Kadous, general manager of the XCOM RAN business unit at Globalstar, recently told Fierce that there may be multiple different teams within Amazon that could be a good fit.
“XCOM RAN is engaged in ongoing post-close integration planning discussions with Amazon; however, no final decisions have been made regarding XCOM RAN's post-close direction,” he said.
Analysts told Fierce earlier this year that XCOM could help Amazon Web Services (AWS) revive its private cellular offering, which it discontinued in 2025, or it could be useful in Amazon’s own warehouses and fulfillment centers.
Read more about Amazon Leo and Globalstar on Fierce Network
Amazon to acquire Globalstar for $11.57 billion
Amazon reportedly in talks to buy Globalstar
Globalstar stays mum on rumored sale of company