After its first investment in Globalstar 2-years ago, Apple is set to invest $1.5 Billion more to expand iPhone communication services
Two years later and we’re learning that Apple will invest another $1.5 billion in Globalstar to fund the expansion of its iPhone communication services, the satellite provider said in a regulatory filing on Friday, according to Reuters.
Under the funding agreement, Apple will commit $1.1 billion in cash and also purchase 20% equity in Globalstar for $400 million. The satellite company said it will use a portion of the funds to pay down debt.
The move is another in a line of partnerships between space firms and mobile service providers looking to provide satellite-based connectivity to customers in regions with limited network access.
Globalstar also said it will allocate 85% of its network capacity to Apple. The deal is expected to close on Tuesday.
Mobile competition is going to heat up with Comcast working with a series of cable companies to offer expanded satellite services. Back in April, Canada’s Rogers Communications announced that it was working with Comcast/Xfinity and SpaceX to deliver satellite-to-mobile coverage nation-wide to ensure Canadians stay connected in areas beyond the limits of traditional wireless networks. Rogers plans to launch satellite-to-mobile phone technology in 2024, starting with SMS texting, mass notifications and machine-to-machine AI applications, and then expand the service to include voice and data services.
This is likely why Apple is going to advance their iPhone’s satellite services in the 2025-26 time frame, so as to bring “voice and data services” to their customer base.