The Federal Communications Commission has approved Amazon Leo’s planned $11.57 billion acquisition of Globalstar, clearing a regulatory hurdle for Amazon’s expansion in satellite communications.
The approval was announced Tuesday in an FCC news release and order. The development concerns regulatory permission for a transaction announced earlier this year, not the announcement of a new deal.
The acquisition would bring Globalstar’s satellite operations and licensed communications assets into Amazon’s growing space business. Amazon Leo is building a low-Earth-orbit network intended to deliver broadband to homes, businesses and government customers.
A broader satellite platform
The FCC’s transaction record describes applications to transfer control of Globalstar’s space-station and earth-station licenses, domestic and international communications authorizations, and an experimental license to Amazon.
Under the proposed structure, Globalstar would become a wholly owned Amazon subsidiary, with its U.S. subsidiaries retaining their corporate identities and Commission authorizations. Globalstar would operate as an affiliate of Kuiper Systems, the Amazon satellite business, according to the agency’s record.
Globalstar provides mobile satellite voice and data services used for emergency communications, asset tracking, maritime and aviation connectivity, and supplemental mobile coverage. Those capabilities would complement Amazon’s broadband network rather than simply add another conventional internet provider.
The FCC said it expects the transaction to benefit people in areas with limited or no connectivity. In the agency’s release, Chairman Brendan Carr described the authorization as a step toward expanded satellite broadband and greater competition. Those are the agency’s expectations, not a guarantee of immediate service availability or lower prices.
Approval is distinct from closing
The FCC’s decision addresses communications licenses and regulatory consent. It should not be read as confirmation that Amazon and Globalstar have completed the acquisition or that a combined service is available to customers today.
The deal was first announced in April. Tuesday’s decision advances the regulatory process around that existing agreement, as Amazon works to expand the reach and capabilities of its satellite network. The FCC’s order describes the transaction as an $11.57 billion deal and provides the underlying description of the licenses and corporate structure involved.
Archive photo: the FCC’s former headquarters at 445 12th Street SW, Washington, D.C., uploaded in 2009. Not the agency’s current headquarters. Ser Amantio di Nicolao / Wikimedia Commons, CC BY 3.0. Resized.
JBizNews Desk | Washington
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