Apple Invests an Additional US$1.5 Billion in Globalstar: Implications and Market Projections for Non-Terrestrial Networks (NTNs) and Direct-to-Cellular (D2C) Space Tech

In November 2024, Apple strengthened its Satellite Communications (SatCom) strategy through a US$1.5 billion investment in Globalstar, acquiring a 20% stake and securing 85% of the network capacity. This deal, consisting of US$400 million in Class B shares and US$1.1 billion in infrastructure prepayments, builds upon previous investments of US$450 million in 2022 and a US$252 million loan in 2023.

Since launching the iPhone 14 in 2022, Apple's satellite services have expanded from basic Emergency SOS and Find My Location features to include Roadside Assistance and off-grid two-way satellite messaging, emojis, and Tapbacks capabilities over iMessage and Short Message Service (SMS) with the iOS 18. Initially covering the United States and Canada, the service footprint has since expanded internationally, now covering multiple countries, including Australia, Austria, Belgium, France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Portugal, Spain, Switzerland, and the United Kingdom. While initially planned as a 2-year free service, Apple has extended the complementary period until November 2025.

With Apple’s investments, Globalstar will modernize its satellite infrastructure. The company currently operates 31 satellites—24 French-licensed HIBLEO-X and 7 U.S.-licensed HIBLEO-4 satellites. To enhance its constellation, Globalstar contracted Canada's MDA Space to build 17 new satellites for US$327 million, with an option to purchase nine additional satellites at US$11.4 million each. The Federal Communications Commission (FCC) approved the initial deployment, which is scheduled to begin in 2025.

Apple's substantial investment in Globalstar, coupled with its involvement in 6G development, suggests a more ambitious long-term vision for SatCom beyond emergency services. The company appears to be positioning itself strategically in several ways:

• Future Communications Architecture: Apple's participation in the Next G Alliance and its work on 6G reference architecture indicates a vision of satellite connectivity becoming an integral part of future mobile communications. The company has been actively involved in developing 6G cellular technologies, suggesting that it sees satellite-cellular integration as a crucial component of future telecommunications infrastructure.
• Strategic Market Position: The expansion from emergency services to regular messaging capabilities with iOS 18 appears to be just the first step. This expansion of SatCom capability could be a significant driver for future iPhone upgrades. The ability to provide reliable communications in cellular dead zones, even in suburban areas, could become a major competitive advantage and differentiator for Apple products.
• Technology Evolution Path: The investment in Globalstar's infrastructure and new satellite constellation suggests that Apple could be preparing for more advanced space tech services. The company appears to be laying groundwork for: 1) enhanced satellite data services beyond basic messaging; 2) potential voice and video calling capabilities; 3) integration with broader communications infrastructure; and 4) support for future 6G standards with native satellite connectivity.

This strategic positioning indicates that Apple could possibly view SatCom technology not just as a supplementary emergency feature, but rather as a fundamental component of the future mobile communications architecture.

Based on ABI Research’s forecasts, the NTN D2C sector is poised for remarkable growth this decade. ABI Research projects that global D2C connections will experience substantial expansion, reaching over 110 million connections by 2030. This transformative market potential reflects the industry's shift toward integrated satellite-cellular communications, promising to bridge connectivity gaps and create new opportunities for service providers and technology companies alike. For more details, please refer to ABI Research’s Satellite Communications: Direct-to-Cellular & NTN Deployments & Subscriptions market data (MD-SATCN-101).

The evolving satellite-to-phone communications landscape presents critical opportunities for various stakeholders to position themselves strategically, ABI Research has three key recommendations:

1. Satellite Operators and Infrastructure Providers: Prioritize the development of scalable and flexible infrastructure capable of supporting both emergency and commercial services. This includes investing in next-generation satellite technology that can accommodate increasing data demands and future 6G integration, while also focusing on ground station modernization and securing global licensing for comprehensive coverage.
2. Mobile Device Manufacturers and Telco Companies: They would benefit from following Apple's example by establishing early strategic partnerships with satellite operators to secure dedicated network capacity. They should invest in developing custom protocols and hardware solutions that effectively utilize satellite networks without compromising device design, while considering free initial service periods to drive adoption as they develop sustainable revenue models.
3. Service Providers and Network Operators: Focus on creating hybrid solutions that seamlessly integrate satellite and terrestrial communications, developing clear monetization strategies that balance consumer accessibility with business sustainability. Emphasis should be on expanding beyond emergency services to include broader communications capabilities, while maintaining network reliability and security.