Amazon’s $11 Billion Globalstar Acquisition Faces Regulatory Delay
Amazon’s bold $11.57 billion attempt to acquire satellite communications firm Globalstar has hit headwinds as the Federal Trade Commission (FTC) intensifies its review, raising fresh questions in the escalating battle for space-based internet dominance.
The deal involves Globalstar, Inc., a Louisiana-based satellite network operator largely unknown to the public but crucially powering the iPhone’s emergency SOS satellite feature. Amazon’s purchase aims to fast-track its lagging satellite internet project, Project Kuiper, which has only deployed 243 of the 3,236 satellites promised since 2019.
FCC Chair Brendan Carr has criticized Amazon’s slow launch pace, calling the deployment delay a “chasm” Amazon must overcome to compete with rivals like SpaceX’s Starlink, which already operates around 10,000 satellites. Amazon requested a two-year extension to meet its satellite launch deadlines, with FCC deliberations ongoing and no immediate decision.
Why Globalstar Matters—And Why Regulators Are Worried
Globalstar, founded in 1991 and headquartered in Covington, Louisiana, operates a discrete but vital satellite network serving sectors such as construction, agriculture, and energy. The company’s unobtrusive technology powers everyday devices, yet it remains a key player behind the scenes in global telecom infrastructure.
For Amazon, acquiring Globalstar presents a chance to instantly gain existing satellite infrastructure, bypassing years of costly satellite launches. However, experts stress this won’t solve Amazon’s core problem: reliable and rapid rocket launches to deploy their full constellation. Gregory Radisic of Bond University notes, “The gap remains structural, not just numerical, unless Amazon can solve deployment speed and launch access.”
The deal also underscores a growing tension involving Jeff Bezos, whose own Blue Origin struggles to meet launch demands. Blue Origin’s New Glenn rocket debuted early this year but lacks the cadence needed to launch hundreds of satellites quickly. Reportedly, Amazon has even rented launch capacity from rival SpaceX’s Falcon 9 rockets, highlighting the fierce competition.
Impact and What’s Next
The FTC’s measured and thorough investigation into the takeover reflects wider security concerns over national infrastructure and spectrum usage. Washington regulators have intensified scrutiny of Big Tech acquisitions, especially those tied to wireless airwaves and satellite tech that underpin critical communications nationwide.
If approved, Amazon’s Globalstar acquisition could reshape the satellite internet landscape by bolstering Project Kuiper’s slow progress. It may also tilt the balance in the fierce competition against SpaceX, which currently dominates the low Earth orbit (LEO) internet race.
Meanwhile, Covington’s Globalstar office remains a quiet hub for satellite technology far removed from the glare of Silicon Valley and the political spotlight of Washington. But this acquisition saga shines a harsh light on what’s at stake as Amazon pivots from e-commerce giant to space contender.
Alaska readers—and nationwide audiences relying on satellite internet for remote connectivity—will want to watch how the FCC and FTC move forward with this deal, which carries significant implications for broadband access, space commerce, and the future of US telecommunications sovereignty. Stay tuned for updates as the regulator’s review unfolds.
