Apple May Invest $1.5 Billion In Globalstar For Satellite iPhone Connectivity (Image: X/pedroaznar)
Apple is set to invest up to $1.5 billion in satellite provider Globalstar to enhance iPhone communication services as per the reports on Friday. This partnership is to expand satellite-based connectivity for Apple users in areas with limited network access.
As per the reports, Apple will provide $1.1 billion in cash and purchase 20% of Globalstar’s equity for $400 million. Globalstar will use part of the funds to pay off debts. In return, Globalstar will allocate 85% of its network capacity to Apple.
In 2022, Apple partnered with Globalstar to introduce an emergency messaging feature for iPhone users in remote areas that enables Apple to offer more comprehensive connectivity.
This will allow compatriots to send emergency messages from remote areas, stay connected in areas with limited network coverage and access satellite-based communication services.
The deal is said to reflect the growing demand for satellite-based connectivity. Other mobile service providers and space firms are also exploring similar partnerships to expand their reach.
Following this announcement, Globalstar’s shares surged over 30% according to recent data. Since the company has debts to pay off this collaboration will further help will help the company pay off debts and enhance its services.
Globalstar is an American telecommunications company that operates a satellite constellation in low Earth orbit (LEO). The company provides satellite phones, low-speed data transmission and earth observation services.
Globalstar was launched in 1991 as a joint venture between Loral Corporation and Qualcomm. The company received its US spectrum allocation from the Federal Communications Commission (FCC) in January 1995.
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Globalstar’s initial investment was $1.8 billion with financial participation from eight other companies, including Alcatel, AirTouch, Deutsche Aerospace, Hyundai, and Vodafone, later on account of some investment withdrawal the company confronted crisis.
The first Globalstar satellites were launched in February 1998. However, the company faced a setback again when a launch failure in September 1998 resulted in the loss of 12 satellites. Despite this, Globalstar made its first call on November 1, 1998.
The company initially charged $1.79 per minute for satellite phone calls. Following the September 11 attacks in 2001, Globalstar’s services were in high demand and today the company operates a constellation of 25 satellites.
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