Apple-Backed Globalstar Inks $64 Million SpaceX Deal to Revamp Satellite Constellation

Globalstar, a satellite network operator boasting the backing of tech giant Apple, has recently secured SpaceX launches amounting to a substantial $64 million, as revealed in regulatory filings.

These launches, slated for the year 2025, hold the mission of deploying a minimum of 17 fresh satellites into low Earth orbit, serving to replenish Globalstar’s existing satellite constellation.

Notably, Globalstar had previously entered into a purchase agreement worth $327 million with MDA for these satellites in February of the preceding year.

In a collaborative effort, Rocket Lab has taken on the role of a subcontractor, supplying the spacecraft chassis.What’s intriguing here is that Apple is shouldering the lion’s share of the capital expenditures linked to these satellites, encompassing the launch expenses.

In addition, the tech behemoth has committed to providing a significant sum of $252 million to cover the initial costs tied to the satellite constellation’s rejuvenation, alongside financial support aimed at enhancing Globalstar’s ground station network.

In exchange for this financial partnership, Apple has secured the rights to utilize a substantial 85% of Globalstar’s network capacity. The primary objective is to leverage this capacity to furnish emergency satellite connectivity for iPhones when they operate beyond the reach of conventional cellular networks.

This agreement highlights the remarkable dominance currently held by SpaceX in the realm of orbital launches. SpaceX is not only a renowned launch provider but is also actively advancing its own “sat-to-cell” plans through its Starlink satellite constellation, which inadvertently places it in a competitive position with Globalstar.

This competition became undeniably pronounced last year when SpaceX presented regulators with a request for additional spectrum allocation to support its Starlink venture. These spectrum allocations, notably, encompass portions of the 1.6/2.4 GHz spectrum bands, which have been traditionally reserved exclusively for Globalstar’s use.