In a landmark decision, the Federal Communications Commission (FCC) has approved Amazon's (NASDAQ:AMZN) $11.57 billion acquisition of Globalstar (NASDAQ:GSAT), a move that secures crucial mobile-satellite spectrum for Amazon's ambitious direct-to-device (D2D) phone network. The approval, granted on October 27, 2026, clears the transfer of satellite and ground licenses, including the authorization for Globalstar's planned C-3 constellation. Light Reading independently confirmed the FCC's decision.
The acquisition is strategically vital for Amazon because its existing broadband authorizations do not include the mobile-satellite spectrum required for its proposed phone service. Globalstar's licensed U.S. bands provide the missing regulatory asset, offering a combined 25.225 MHz of spectrum: 8.725 MHz for uplink (phone-to-orbit) and 16.5 MHz for downlink (orbit-to-phone). This spectrum is essential for enabling communication between satellites and mobile devices, a capability Amazon lacks.
The FCC accepted the companies' argument that a larger fleet and spatial reuse—serving separate geographical areas with the same frequencies—would increase spectrum efficiency, subject to interference constraints. The order also credits Amazon's optical mesh architecture over Globalstar's existing bent-pipe design. Bent-pipe satellites simply relay traffic between users and ground gateways, whereas optical links allow data to be transmitted between spacecraft before reaching a gateway. Amazon demonstrated 100 Gb/s prototype laser links over roughly 1,000 kilometers in 2023, though these tests measured inter-satellite transport, not speeds delivered to end users.
Globalstar's C-3 authorization covers a defined network: 48 operational satellites and six orbital spares, totaling 54 spacecraft, operating at an altitude of 1,414 kilometers. The company plans to deploy approximately 90 ground antennas, each six meters across, with command centers in Covington, Louisiana, and Toulouse, France. Globalstar's regulatory chief, L. Barbee Ponder, described these as "U.S.-manufactured ground station antennas installed in over 20 countries around the world."
Deployment Timelines and Milestones
The approval comes with conditions. Closing remains tied to HIBLEO-4 replacement-satellite milestones, as stipulated in the April merger agreement. If operational milestones are missed, the purchase price could be reduced by up to $110 million, linking part of the consideration to operational progress before ownership changes. Amazon's agreement with Apple also promises to maintain existing satellite features for supported iPhone and Apple Watch models that use Globalstar's current and upcoming constellations.
Globalstar targets its first C-3 launches in 2027, while Amazon says deployment of its own next-generation D2D satellites will begin in 2028. These are separate schedules, and neither represents a completed rollout. Amazon's separate D2D license application is still pending, according to the transfer order. The acquired C-3 market-access grant has its own scope, and Light Reading distinguishes between the two systems in its reporting.
Regulatory and Market Implications
The FCC added another condition: Amazon must continue Globalstar's 1999 and 2004 government agreements, which involve U.S. security and law-enforcement agencies, including the Justice Department and FBI. This ensures that national security commitments tied to the spectrum remain intact.
Market analysts view this approval as a significant step for Amazon's push into satellite communications, a sector increasingly dominated by SpaceX's Starlink and other players. The deal not only provides Amazon with essential spectrum but also with an established satellite infrastructure. However, risks remain: closing depends on satellite milestones, launches and ground integration still need completion, and spectrum reuse must meet interference constraints. Amazon's larger D2D system requires separate licensing, and its 2028 deployment target remains a plan.
The approval does not include new retail plans or performance guarantees, and licensed bandwidth alone cannot establish the combined network's delivered capacity. As the satellite communications landscape evolves, this acquisition positions Amazon to compete more directly in the emerging direct-to-device market, though significant operational hurdles remain before the service becomes a reality.
