Apple shows how iPhones can connect to satellite. Screenshot via Apple

Apple is doubling down on its partnership with Globalstar, investing $1.5 billion to fund a new constellation for expanded satellite services. 

Apple will pay Globalstar up to $1.1 billion to fund a new constellation and invest $400 million in a Globalstar LLC that will own the new constellation, for a 20% equity stake, according to a new Globalstar filing with the Securities and Exchange Commission (SEC) on Friday.

A representative from Globalstar confirmed to Via Satellite that the investment funds a new constellation — separate from the constellation upgrade in progress with MDA Space. 

This new investment will support the development and launch of a new mobile satellite services (MSS) constellation as well as the expansion of ground infrastructure, which will be owned and operated by Globalstar. The satellite operator has agreed to allocate 85% of its network capacity for Apple services. 

The $1.1 billion will serve as a prepayment for expanded satellite services on the new network. Apple will also pay an additional $232 million that Globalstar intends to use to pay down debt. 

Globalstar is already going through a constellation refresh with 17 satellites on order with MDA Space, and the option to purchase nine more. The first refresh satellites are set to launch next year. Globalstar recently secured FCC approval for the 17 replacement satellites. 

Globalstar has big expectations for the new constellation and said in the filing it expects its revenue will more than double from 2024 levels when the expanded satellite services are operational. This year, Globalstar is projecting between $235 million and $250 million in revenue. 

Globalstar’s stock soared nearly 40% on Friday with the news. The company’s stock price was $1.46 on Friday. 

Apple was the first phone manufacturer to bring satellite connectivity to standard phones. The feature has saved lives, and was the subject of news coverage for how it impacted people during the recent Hurricane season. 

Globalstar has been providing satellite capacity for the messaging since the service began in November 2022 on the iPhone 14. Earlier this year, Apple expanded the satellite messaging capabilities from just emergency messaging to standard messaging when cellular and Wi-Fi is not available.

Working with Apple has marked a turnaround for Globalstar’s revenue. In 2023, Globalstar earned $74.2 million from the first full year of wholesale capacity sales to Apple, which contributed to a 50% revenue boost. 

While Apple was the first to bring the service to the mass market, other equipment manufacturers and mobile network operators are working with satellite operators to make this type of service widespread. SpaceX is launching Direct-to-Cell satellites at a rapid quip, and received special approval from the FCC during the Hurricanes in the fall to operate service with T-Mobile in affected areas. 

AST SpaceMobile is working with both AT&T and Verizon in the U.S., and other MNOs in other countries. Verizon also signed a deal with Skylo this year. And Skylo is also the satellite partner for Google on the Pixel 9. 

Correction: This story has been updated to clarify the $232 million from Apple to pay down debt is in addition to $1.1 billion infrastructure investment and the $400 million LLC equity purchase.