Apple’s $1.5 Billion Mobile Service Satellites Will Be Launched By SpaceX

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Apple's $1.5 billion deal with Globalstar, through which the firm acquired a 20% stake in the company and provided it with the funds to build out a mobile satellite service (MSS) network, will use SpaceX's rockets to launch the satellites. Apple first announced its MSS investment in November 2022 and made headlines last month after a Globalstar SEC filing revealed a $1.5 billion investment that gave Apple 20% control over a subsidiary.

Subsequent Globalstar filings with the Federal Communications Commission (FCC) and the SEC shed more light on the deal, revealing that Globalstar will use part of the proceeds from the deal to retire debt and to build its next-generation MSS satellite constellation.

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SpaceX Will Launch Apple Partner Globalstar's MSS Satellites In 2025

Apple's satellite-based features rely on Globalstar's network, which in turn uses the MSS spectrum. This spectrum is in the L and S bands, and Apple's deal with Globalstar in October expands their partnership. Now, Apple will prepay Globalstar for its MSS network and allow the firm to retire some of its debt. Globalstar will achieve these objectives through a $1.1 billion payment which will also cover launch and construction costs for what Globalstar describes as its 'Extended MSS Network.'

The remaining $400 million is an equity purchase that allows Apple a 20% control of a Globalstar entity. As per Globalstar's FCC filing, this entity is Globalstar Licensee LLC, which controls the firm's MSS satellite constellation. After the deal, Globalstar's executive chairman Jay Monroe's equity interest in Globalstar Licensee LLC, has dropped to 44.52% from an earlier 55.65%, but he still holds a majority voting interest of 57.77%.

Monroe's ownership of the satellite