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Apple’s investment is set to boost Globalstar’s network expansion for enhanced satellite services
Globalstar has expanded its partnership with Apple, in signing an updated agreement to deliver enhanced satellite services through a new mobile satellite network (MSS), according to a recent regulatory filing.
The upgraded network will feature a fresh satellite constellation, expanded global ground infrastructure, and additional satellite service licensing to support Apple’s connectivity needs.
Under the new terms, Apple will prepay up to $1.1 billion to fund network development, including satellite construction and launch costs. Apple will also invest $400 million to acquire a 20% passive equity stake in a Globalstar special-purpose entity (SPE) that will hold assets for the MSS network.
Globalstar will retain full control of the network’s operations and continue to serve other satellite customers, while dedicating 85% of the network’s capacity to Apple’s services.
The agreement also allows Globalstar to retire its outstanding 2029 debt, using part of Apple’s prepayment. Globalstar will earn additional service fees from Apple, including payments tied to network milestones, performance incentives, and licensing fees. Apple’s equity stake includes repurchase options, allowing it to redeem its investment once prepayment obligations are met.
This updated partnership is projected to double Globalstar’s revenue in the first year of the MSS network’s launch. Globalstar will host an investor day in December 2024 to share more details about its future plans and network capabilities.
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