Apple secures $1.5 billion Globalstar deal to expand satellite messaging beyond emergency services

Apple’s latest $1.5 billion move into satellite communications is a step toward boosting its satellite messaging options. This investment, aimed at Globalstar, gives Apple a 20 percent stake in the company and funds for infrastructure upgrades to support messaging beyond just emergency services.

Apple put in $1.1 billion in this deal to build out satellite infrastructure and another $400 million for an ownership stake in Globalstar. The partnership kicked off in 2022, letting iPhone 14 users access emergency satellite messaging. But now, with iOS 18, they’re taking it further—users can send texts, emojis, and tapbacks through both SMS and iMessage over satellite, with end-to-end encryption for iMessages.

The funds will help Globalstar launch a bunch of new satellites and strengthen its ground network. They’re adding up to 26 new satellites to their existing fleet of 31 low Earth orbit satellites. Plus, over $200 million of the funds will go toward clearing some of Globalstar’s current debt.

Apple also keeps the rights to a whopping 85 percent of Globalstar’s network capacity, giving it a lot of room to expand its satellite services. And they’re not alone in this space—competition’s heating up, with Google recently teaming up with Skylo to offer emergency SOS messaging on its Pixel 9.

This deal is expected to be finalized in early November 2024. Apple is now offering these satellite services for free to iPhone users. Still, adding features beyond emergency communication hints that the company could eventually charge for the feature.