Hello everyone. We kick things off with Neil’s thoughts on Globalstar, the satellite operator that Apple is relying on for Emergency SOS via satellite, signing a $64M launch deal with SpaceX. The discussion then turns to answering the question: Does SpaceX’s dominance push Apple to become more hands-on with satellites? Let's jump into today's update.

Globalstar Signs Launch Deal With SpaceX

The direct-to-device satellite communications space is heating up.

Last year, Apple unveiled Emergency SOS via satellite for iPhone 14 and 14 Pro. Apple partnered with satellite operator Globalstar for the feature. Earlier this year, the two companies signed a ~$250M funding deal that boils down to Apple funding Globalstar's efforts to update its dozens of low Earth orbit (LEO) satellites in exchange for making the constellation available to Apple. Meanwhile, SpaceX is working with T-Mobile on providing cell phone users satellite service. AT&T is working with AST SpaceMobile to boost its coverage. Qualcomm has turned to Iridium with Android devices in mind.

As for Globalstar updating its constellation, here's SpaceNews:

“Globalstar has contracted SpaceX to launch Apple-backed satellites in 2025 to replenish its low Earth orbit (LEO) connectivity constellation.

The operator said in an Aug. 30 regulatory filing it will pay a total $64 million to launch the first set of satellites ordered last year from MDA, which is using Rocket Lab to supply chassis for the spacecraft.

While the company did not give further details about the launch agreement, its $327 million contract with MDA covered 17 satellites for deliveries anticipated in 2025. The manufacturing contract also includes an option for up to nine additional satellites at $11.4 million each.

Apple has agreed to reimburse Globalstar for 95% of the constellation, including manufacturing and launch costs. The smartphone giant is also lending Globalstar $252 million to help cover upfront costs.

In return, Apple would use 85% of the new network’s capacity to upgrade satellite services launched last year for its latest iPhone, which can connect with one of Globalstar’s 24 existing satellites for emergency services when cell towers are out of reach.”

Even though Globalstar relied on SpaceX to launch a satellite in mid-2022, this new deal will raise the level of awkwardness between the two companies.

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