Globalstar and Apple have updated their terms for a new satellite network designed to support expanded mobile satellite services (MSS). Under the deal, Apple will invest up to $1.5 billion, including a $1.1 billion prepayment and a $400 million equity stake, to further expand satellite coverage and services.
This revised agreement, formalized on October 29, 2024, will see Globalstar create an enhanced MSS network with a new satellite constellation, additional ground infrastructure, and expanded global MSS licensing. The new network, owned by Globalstar Licensee, LLC (Globalstar SPE) and operated by Globalstar, will support Apple’s satellite services while allowing Globalstar to maintain ownership and control over commercial operations. Apple will also make a prepayment for these expanded services, helping fund the network’s development, but will remain a passive equity holder in the network entity.
Under the agreement, Globalstar will retain 100% of all terrestrial and MSS revenue and continue allocating 85% of network capacity to serve Apple, with the remainder available for other clients. The financial structure includes Apple’s initial prepayment and issuance of Customer Class B Units, which Globalstar will redeem over time. Expected revenue and improved EBITDA from this partnership are anticipated to more than double Globalstar’s 2024 financial performance. Globalstar will provide further updates on its competitive positioning at an investor event in December.
Key Points:
• Globalstar and Apple amended their partnership to launch an enhanced MSS satellite network.
• The new network will feature a fresh constellation, additional infrastructure, and expanded licensing, funded partially by Apple’s prepayment.
• Globalstar retains 100% of terrestrial and MSS revenue, with 85% of network capacity designated for Apple.
• Apple holds passive equity in the network and will have its prepayment redeemed over time via service fees.
• Globalstar forecasts a doubling of annual revenue post-launch and plans an investor day in December to discuss its strategy and outlook.
https://investors.globalstar.com/static-files/95834b8c-28d2-49c6-b931-e922aa58c25f
In 2022, Apple introduced an Emergency SOS via Satellite capability with the iPhone 14.
