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FCC Approves Amazon's Acquisition of Globalstar Despite Objection from Yippy

Space1 min read

The US regulator FCC has approved Amazon's purchase of satellite company Globalstar, worth $11.5 billion. Only one objection was filed, and it came from a company that partners with Globalstar.

What happened

The US Federal Communications Commission (FCC) officially approved Amazon's takeover of Globalstar. The FCC says the deal serves the public interest because it will improve satellite services for people. Amazon agreed to buy Globalstar in April. The deal is valued at 11.5 billion US dollars. The only objection came from Yippy, a company that has a stake in Globalstar and also works with IBM. The FCC did not accept Yippy's claims.

Key numbers and facts

  • Deal value: 11.5 billion US dollars
  • Agreement announced in April of this year
  • Amazon's own D2D (direct-to-device) satellite system is planned to start in 2028
  • Only one objection was filed in the public review
  • Yippy has not used Globalstar's communication services since 2021

Why Amazon wants Globalstar

Amazon is building its own satellite network called Leo. It is growing more slowly than expected and more slowly than regulators have demanded. Globalstar brings extra satellite network capacity and mobile satellite spectrum licenses with worldwide approval. Amazon wants to connect regular phones directly to satellites, so people can get signal in remote areas or outside normal mobile networks.

Why it matters

The FCC says Amazon, a well-funded company, will now run satellite phone services that could increase competition in the mobile market. The FCC thinks Amazon is likely to use this spectrum heavily, based on its past investments. The case also shows how a partner's objection can be seen as a way to pressure a company in an unrelated business dispute. Yippy is in a separate dispute with Globalstar, which Globalstar did not mention in its filing, according to Light Reading.

What to watch

  • Which other approvals are still needed for the Globalstar deal; Amazon declined to say
  • Whether Amazon's Leo satellite network speeds up as planned
  • Launch of Amazon's direct-to-phone satellite system, planned for 2028
  • How the dispute between Yippy and Globalstar is resolved

Glossary

FCC
The US government agency that regulates radio, TV, and communication services, including satellites.
Globalstar
A satellite company that provides mobile satellite communication services.
Leo
Amazon's own satellite network, which is still being built.
Yippy
A company that built the Sat-Browse system for Globalstar, which compresses web pages for slow connections.

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