Apple Expands Globalstar Relationship to Support Growing Satellite Services
Globalstar today announced an amended agreement with Apple that will see an expansion of the satellite services that support Apple features like Emergency SOS, Roadside Assistance, Messages, and Find My location updates that can now be handled in areas with no terrestrial Wi-Fi or cellular coverage in select countries.
According to the SEC filing by Globalstar, which is Apple's existing partner in providing satellite services, Globalstar will deliver a number of improvements to Apple including a new satellite constellation, expanded ground infrastructure to support the satellites and Apple's services, and increased global licensing of the new satellite services.
In exchange, Apple will make prepayments of up to $1.1 billion to support construction and launch of the new satellites and other expenses. Apple will also take a passive 20% equity interest in Globalstar at a cost of $400 million.
Apple's satellite services debuted in late 2022 on iPhone 14 models with the launch of Emergency SOS and Find My location updates via satellite in the U.S. and Canada, allowing users in remote areas to contact emergency services via text message. Over time, Apple's satellite services have expanded to additional countries and added new functions including Roadside Assistance in late 2023, and with iOS 18 this year, users can now communicate with others using iMessage and text messages via satellite even in non-emergency situations.
At the time of Apple's original satellite services launch in 2022, the company said the services would be offered for free for the first two years upon the purchase of a compatible phone, with a fee required beyond that time to continue using them. Apple has, however, extended the free service period and has yet to begin charging a fee. It is unclear at this point if or when Apple will begin charging for use of satellite services, and if so, what the fee will be.
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