Apple Amends Its Deal With Globalstar To Bolster Growing Satellite Services, Commits To Pay $1.1 Billion To Expand The Capacity

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Apple expands deal with Globalstar to enhance Satellite services

Apple is expanding its Satellite services for the iPhone with an amended agreement with Globalstar. If you are not familiar with this, Apple partners with Globalstar to power features like Emergency SOS, Roadside Assistance, Find My, and more on its devices. The company will contribute towards the infrastructure and also keep 20 percent of Globalstar's equity with $400 million. You can check out more details on the amended agreement below and what services you should expect in the long run.

Apple expands its relationship with Globalstar to bolster its satellite services

According to an SEC filing by Globalstar, Apple's services will be expanded through enhanced infrastructure, and Apple will make certain payments to support the construction. In return, Globalstar will offer a range of improvements, including a new satellite constellation and increased global licensing of the new satellite services.

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Apple will make up to $1.1 billion in prepayments for its aforementioned plans, but there is a catch. The company will also take 20 percent equity in Globalstar, which could cost as much as $400 million. The company began its satellite services by the end of 2022 with the launch of the iPhone 14 lineup. Initially, the services catered to Emergency SOS and Find My Location features in the United States and Canada, allowing users to contact emergency services through text messages in areas without cellular or WiFi services.

Since then, the company has expanded its services to additional regions while adding more features to the mix, including Roadside Assistance, which was introduced by the end of last year. This year, the company is bringing another feature that will allow users to communicate with each other even in non-emergency situations. Communication will be done through text messages via satellite and iMessage.

Note that while these services are free right now, the company plans to charge users monthly or annually. Back in 2022, Apple stated that the service would only be free for users for the first two years on compatible devices. The Cupertino giant extended the time frame, and it remains to be seen when and how it will start charging for the satellite-based services. We are also unclear what the company could charge for the service. Share your expectations with us in the comments section below.