(Credit: Apple)
Apple will spend up to $1.1 billion to expand satellite connectivity on iPhones.
The news comes from Globalstar, a satellite communications provider that powers the Emergency SOS feature on newer iPhone models. Apple previously paid over $330 million to help Globalstar support satellite services for its iPhones. In a Friday filing with the Securities and Exchange Commission, Globalstar says the extra funding will "deliver expanded services to [Apple] over a new mobile satellite services (‘MSS’) network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing.”
Globalstar has committed to allocating 85% of its satellite network capacity to Apple, and Apple has agreed to buy 400,000 Class B shares in the satellite provider for a 20% stake.
The investment signals that Apple wants to offer even more satellite services to iPhone owners. Others, like SpaceX and AST SpaceMobile, are building satellite networks to bring space-based SMS messaging, voice calling, and internet browsing to consumer smartphones.
(Photo Illustration by Jeremy Hogan/SOPA Images/LightRocket via Getty Images)The companies have been developing satellite services so users can receive a signal even in a cellular dead zone. In Apple’s case, the Emergency SOS feature has already proven it can help save lives during a disaster or when the user is located in a remote area. In June, Apple announced expanded satellite connectivity to let users send texts via iMessage with iOS 18.
It's not clear how Apple envisions using the new satellite constellation. However, according to the filing, Globalstar expects its own total annual revenue to “more than double” after the launch of the expanded satellite services, an indication of the project’s scope. Emergency SOS is currently free for two years on the iPhone 14 and up; Apple hasn't said how much it will cost in the future.
Another mystery is how Globalstar plans on developing the new satellite constellation. In August, the company received regulatory clearance from the FCC to deploy up to 17 replacement satellites to upgrade its existing satellite network.
However, satellite industry analyst Tim Farrar estimates that Globalstar now has about $1.3 billion in funding to launch an additional “40 to 80” satellites. “The interesting question is how this will be handled at FCC after the August approval,” he said in a tweet thread.
Globalstar might request permission to launch an entirely new low-Earth orbit satellite constellation, which could take several months or longer to receive FCC approval. Or Apple might prefer “to stay within the parameters of the recent FCC authorization” and simply focus on upgrading the currently ordered satellites to add power and capacity.
“All uncertain at this point but the reference to a ‘new MSS network’ and a ‘new satellite constellation’ suggests it is more than just upgraded replacement satellites,” Farrar said.