Apple’s $1.5 Billion Investment in Globalstar: Enhancing Satellite Communication for iPhone Users

She told about the merger of the two companies Reuters Groupwhich is responsible for its communication on a report submitted by Globalstar‘s management to regulatory authorities.

Apple‘s plan is clear, the goal of the investment is to strengthen and expand the possibilities of satellite communications for iPhone users.

The American technology giant offered this function in its apple phones years ago, thus trying to offer the possibility of communication even in places without mobile signals.

The collaboration between Apple and Globalstar is nothing new. Already, the company’s satellites are a key element in a system that allows emergency text messages to be sent from iPhones in places where normal cellular connections fail.

This service has been of great benefit to users moving to terrain beyond the reach of traditional telecommunications networks, such as mountains, deserts or remote rural areas. Thanks to this feature, in an emergency, iPhone users can send a message about their location and call for help even without a mobile signal.

However, the current investment deepens this cooperation even more. Apple has pledged to provide $1.1 billion in cash (CZK 25.57 billion) and will use another $400 million (CZK 9.29 billion) to buy 20 percent of Globalstar’s shares.

This financial injection will allow Globalstar not only to reduce its debt burden, but also to invest in satellite infrastructure upgrades and the expansion of ground support facilities.

The agreement also includes a major commitment from Globalstar, that the company will provide 85 percent of its satellite network capacity to Apple. The network currently has 31 satellites, with Globalstar recently ordering 26 additional satellites to strengthen and upgrade the entire network in low Earth orbit.

This should increase reliability and capacity, which will allow Apple to continue developing services that guarantee connections to users even in remote areas. As a result of the investment, Apple will become a leader in the field of satellite communications, at least in terms of mobile device manufacturers.