Apple spends $1.5 billion to beef up its satellite communications

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Apple continues to invest in satellite communication, which allows you to send text messages or SOS from your iPhone when the user is in a dead zone. As a reminder, the Cupertino company does not have its own constellation, unlike Starlink.

But to provide its satellite services on iPhone, it has partnered with the company Globalstar. And this year, this collaboration takes on a new dimension.

As reported in a CNBC article, the company Globalstar revealed, via a document submitted to the SEC, the stock market regulator in the United States, that Apple has taken a 20% stake in its capital. The investment is worth $400 million. But that’s not all, as the document also reveals a $1.1 billion prepayment to Globalstar for its infrastructure. The document mentions in particular a new constellation of satellites, as well as an expansion of Globalstar’s ground infrastructure.

Apple and Starlink in competition ?

As a reminder, Apple began offering satellite communication in 2022, on its iPhone 14 models. At the time, this service only allowed SOS messages to be sent for emergencies, when the user did not have access to mobile networks or Wi-Fi. This year, the firm expanded this service, also allowing its users to exchange text messages via satellites, outside of emergencies.

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Currently, these satellite text messages are free, but are still only available in the United States and Canada. Apple has already indicated that this service will be offered in other countries, later. And it is possible that recent investments will allow Globalstar to improve its infrastructure, to offer a global service.

In any case, with this satellite texting service, Apple is in direct competition with the future Starlink mobile service. As a reminder, SpaceX is deploying new satellites that act as 4G towers in space and that will allow text messages to be exchanged on 4G devices in dead zones. Next year, this new Starlink service, which is offered in collaboration with operators, will also support mobile calls and data.

• Since 2022, Apple has offered a satellite communication service on the iPhone 14 and newer models
• This service is offered via the satellites of the company Globalstar
• Apple recently invested $400 million to take a 20% stake in Globalstar and made a $1.1 billion prepayment for the company to beef up its infrastructure
• As of this year, Apple’s satellite service allows for texting outside of emergencies, but this feature is still only available in the United States and Canada
• However, Apple has already indicated that satellite texting will be available in other countries later

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