The FCC has kicked off its review process for Amazon’s acquisition of Globalstar, seeking comment on the deal by July 6.
Amazon moved in April to acquire Globalstar in a $10.8 billion deal, including Globalstar’s satellite operations, infrastructure, and spectrum.
According to Amazon’s formal application to the FCC for the license transfer, Globalstar will become a wholly owned subsidiary of Amazon and retain its corporate identity and operate as an affiliate to Kuiper Systems LLC, the Amazon LLC now known as Amazon Leo.
Also as part of the transaction, the Amazon-owned subsidiary will acquire Apple’s 20% stake in a Globalstar LLC, which was part of Apple’s investment in a next-generation Globalstar constellation.
Amazon also detailed continuity for Globalstar’s existing customers, saying the transaction will “reposition a capital-constrained MSS incumbent as a well-resourced provider and vigorous competitor,” due to Amazon’s capital, infrastructure, and operational capabilities.
Amazon plans to build its own constellation of direct-to-device satellites and said it will orchestrate its new constellation, Globalstar’s existing systems, and the next-generation C-3 Globalstar constellation. Amazon also expects to provide iPhone users with more features and greater reliability.
Amazon explained the transaction is in the public interest because it will intensify competition and bolster innovation. “D2D customers stand to benefit from lower latency, enhanced capacity, expanded access, and a suite of expanded capabilities,” Amazon said in the filing.
