Globalstar, Inc. is an American telecommunications company that operates a satellite constellation in low Earth orbit (LEO) for satellite phone, low-speed data transmission and Earth observation. The Globalstar second-generation constellation consists of 25 satellites.[1] In April 2026, Amazon announced an agreement to acquire Globalstar and merge it into its Amazon Leo business unit with the acquisition intended to close in 2027.[2][3]
History
The Globalstar project was launched in 1991 as a joint venture between Loral Space & Communications and Qualcomm. On March 24, 1994, the companies announced the formation of Globalstar LP, a limited partnership in the United States with financial participation from eight additional firms, including Alcatel, AirTouch, Deutsche Aerospace, Hyundai, and Vodafone. The system was projected to enter service in 1998 at an estimated cost of $1.8 billion.[4]
In 1994, Globalstar projected pricing of $0.65 per minute, compared to the approximately $3 per minute the competing Iridium service charged. The company obtained a worldwide license from the World Administrative Radio Conference and received U.S. spectrum allocation from the Federal Communications Commission (FCC) in January 1995, while continuing to negotiate international frequency rights.[5]
The first satellites were launched in February 1998. A launch failure in September 1998 resulted in the loss of 12 satellites, delaying deployment. In late 1999, Globalstar began "friendly user" trials with 44 of the planned 48 satellites. The first call on the system was placed on November 1, 1998, from Qualcomm chairman Irwin Jacobs in San Diego to Loral Space & Communications CEO and chairman Bernard Schwartz in New York City. Limited commercial service began in December 1999, followed by full commercial service in February 2000 across North America, Europe, and Brazil using 48 satellites and four in-orbit spares; additional satellites were maintained as ground spares. Initial pricing was $1.79 per minute.[6]
Following the September 11 attacks in 2001, Qualcomm developed an experimental airborne Globalstar system using multiple user terminals to increase data throughput. The system provided voice and data connectivity, integrated with aircraft systems, and enabled transmission of telemetry and video.[7]
On February 15, 2002, Globalstar and three subsidiaries filed for Chapter 11 bankruptcy protection. Restructuring was completed in 2004, following an initial stage in December 2003 in which Thermo Capital Partners assumed operational control. Globalstar LLC was formed in November 2003 and converted into Globalstar, Inc., on March 17, 2006.[8]
In 2007, Globalstar launched eight additional first-generation satellites to supplement failing spacecraft. Between 2010 and 2013, the company deployed 24 second-generation satellites to restore system capacity. During this period, Globalstar relocated its headquarters from Silicon Valley to Covington, Louisiana.[9]
In March 2020, the Third Generation Partnership Project approved Globalstar's Band 53 for 5G use, designated as band n53.[10] In March 2021, the company announced the discontinuation of its Sat-Fi2 and Sat-Fi2 RAS services.
On September 7, 2022, Apple announced satellite-based emergency messaging for iPhone using Globalstar’s network in the United States and Canada.[11] In October 2024, Globalstar disclosed that Apple had agreed to acquire a 20% stake in the company, with new plans to increase the network to 54 satellites.[12][13][14]
On April 14, 2026, Amazon announced an agreement to acquire Globalstar for $11.57 billion, while pledging to continue support for Apple devices.[2]
Products and services
Globalstar is a provider of satellite and terrestrial connectivity services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world.
Globalstar's terrestrial spectrum, Band 53 and its 5G variant n53 offers carriers, cable companies and system integrators a fully licensed channel for private networks, while Globalstar's XCOMP technology offers capacity gains in dense wireless deployments.
The company's products include simplex and duplex satellite devices, data modems, and satellite airtime packages.
Many land-based and maritime industries make use of the various Globalstar products and services from remote areas beyond the reach of cellular and landline telephone services. However, many areas of the Earth's surface are left without service coverage, since a satellite requires being in range of an Earth station gateway.
Global customer segments include oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users.
Globalstar data communication services are used for a variety of asset and personal tracking, data monitoring, and SCADA applications.
Satellite messengers
In late 2007, Globalstar subsidiary SPOT LLC launched a handheld satellite messaging and tracking personal safety device known as the SPOT Satellite Messenger
System architecture
Gateways
Globalstar satellites are simple "bent pipe" analog repeaters,[15] unlike Iridium.[16]
A network of ground gateway stations provides connectivity from the 40 satellites to the public switched telephone network and Internet. A satellite must have a Gateway station in view to provide service to any users. Twenty four Globalstar Gateways are located around the world, including seven in North America.[17] Globalstar Gateways are the largest cellular base station in the world with a design capacity for over 10,000 concurrent phone calls over a coverage area that is roughly 50% of the size of the US. Globalstar supports CDMA technology such as the rake receiver and soft handoffs
Business operations
Corporate structure and financing
Predecessor company – Globalstar LP. In February 1995, Globalstar Telecommunications Ltd. raised $200 million from its initial public offering in the NASDAQ market. The IPO price of $20 per share was equivalent to $5 per share after two stock splits. The stock price peaked at (post-split) $50 per share in January 2000, but institutional investors began predicting bankruptcy as early as June 2000. The stock price eventually fell below $1 per share, and the stock was delisted by NASDAQ in June 2001.
After the IPO, the publicly traded Globalstar Telecommunications (NASDAQ symbol GSTRF) owned part of system operator Globalstar LP. From that point on, the primary financing for Globalstar LP was vendor financing from its suppliers (including Loral and Qualcomm), supplemented by junk bonds.
After a total debt and equity investment of $4.3 billion, on February 15, 2002, Globalstar Telecommunications filed for Chapter 11 bankruptcy protection, listing assets of $570 million and liabilities of $3.3 billion. The assets were later bought for $43 million by Thermo Capital Partners LLC.
Globalstar LLC and Globalstar, Inc. When the new Globalstar emerged from bankruptcy in April 2004, it was owned by Thermo Capital Partners (81.25%) and the original creditors of Globalstar L.P. (18.75%). Globalstar LLC was incorporated in April 2006 to become Globalstar, Inc.
Globalstar, Inc. completed an IPO in November 2006. The stock currently trades on the Nasdaq under the symbol GSAT.
See also
- Mobile-satellite service
- Satellite phone
- Broadband Global Area Network
- Gonets
- ICO Satellite Management
- Inmarsat
- Iridium Satellite LLC
- O3b Networks
- SkyWave Mobile Communications
- Starlink
- Teledesic
- TerreStar
- Thuraya
External links
References
- Globalstar M073 – 103 (Globalstar-2) space.skyrocket.de, retrieved March 10, 2023^
- Annie Palmer. Amazon to buy Globalstar to bolster Leo satellite business in deal worth about $11.6 billion CNBC, 2026-04-14, retrieved 2026-04-14^
- Amazon to acquire Globalstar and expand Amazon Leo satellite network