Global Star

Apple finally confirmed a longstanding rumor that its new iPhones will be able to connect directly to LEO satellites to send and receive text messages. The feature, called Emergency SOS, will allow iPhone 14 models to message from remote locations not covered by traditional cellular infrastructure. Apple says the service launches in November and will be free to iPhone 14 buyers for two years. It didn’t specify what it might cost after that. Apple noted at Wednesday’s Cupertino, CA HQ event that its smartphone would need to be pointed directly at a satellite to work, and that even light foliage could make texts a few minutes to send.

Globalstar confirmed in a filing Wednesday that it will be operating the service through a partnership with Apple. Under that agreement, Apple will cover 95% of the capital expenditures made by Globalstar to build up its network, including new satellites, to provide the service. It will require Globalstar to allocate 85% of its “current and future network capacity” to support the service, which analyst Mike Crawford of B. Riley describes as “in one fell swoop converting an underutilized asset to a productive asset.”

The deal will include service fees and potential bonus payments, allowing Globalstar to project total revenue in a range of $185 million to $230 million for next year and $250 million to $310 million for 2026, which is expected to be the first full year that all of the company’s new satellites are operational. Even the low end of the near-term target would be a record high for the satellite-service provider, representing a gain of 44% above the annual revenue Globalstar has averaged for the past three years. Globalstar notably broke from the traditionally dry language of SEC filings to describe the deal as “transformational.”

Globalstar, currently offers SPOT X which provides 2-way satellite messaging so users can stay connected whenever you’re outside of cellular range, including direct communication with search & rescue services in case of a life-threatening emergency. SPOT X provides your own personal U.S. mobile number so others can message you directly from their mobile phone or SMS devices at any time.

Globalstar Satellite System:

Like “bent-pipes” or mirrors in the sky, the Globalstar satellites pick up signals from over 80% of the Earth’s surface. Our satellites transmit customer signals via CDMA technology to antennas at the appropriate terrestrial gateway, then the signals are routed through the local networks. This highly effective design offers the shortest connectivity latency and enables Globalstar to upgrade our system with the latest technology on the ground.

Globalstar’s new satellite constellation of Low Earth Orbit (LEO) satellites and second generation ground infrastructure deliver exceptional quality, reliable coverage and high quality service to its customers.

Image Credit: Globalstar

The company’s patented satellite path and gateway diversity technologies allow customers to stay connected in the event of a single satellite failure by automatically transmitting to the next available satellite. This ensures uninterrupted communication in even the most suboptimal conditions like mountainous areas or urban canyons.

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There is increasing competition for LEO satellite based internet access from smartphones:

Starlink/SpaceX, announced a deal last month with T-Mobile to launch a text-based service by the end of next year. The Apple-Globalstar service might have cooled some enthusiasm. It is designed for emergency texting only, as opposed to providing a more typical smartphone experience in the wild.
In addition to T-Mobile’s venture with SpaceX, the Globalstar rival Iridium announced in July that it has entered a development agreement with an unnamed company for a smartphone service that it expects to complete by the end of the year. Ric Prentiss of Raymond James wrote Thursday that the total addressable market “for satellite-smartphone off-the-grid connectivity is quite large with room for several initiatives globally.”

References:

https://www.wsj.com/articles/apple-will-keep-globalstar-in-orbit-11662698148?mod=markets_major_pos3

https://www.globalstar.com/en-us/solutions/emergency-remote-communications

https://www.globalstar.com/en-us/about/our-technology