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Apple is giving more than $1 billion to its existing satellite provider GlobalStar to expand its ground bases and add more satellites for iPhone messaging.
Two years after the company first launched its Emergency SOS feature via satellite with the iPhone 14, Apple is now working on a major expansion of the capabilities. It has already added features like roadside assistance via satellite and expanded it to non-emergency messaging.
Now its satellite provider GlobalStar has announced a new expansion of its deal with Apple, which has two parts. The first part is that Apple is paying up to $1.1 billion in upfront fees specifically so that GlobalStar can add what it describes as a new satellite constellation.
The second part is that Apple has now acquired a 20% stake in GlobalStar. It’s an equity deal worth about $400 million, according to Street Insider.
The announcement is a financial statement from GlobalStar, not specific news about new features from it or Apple. But it will lead to more capacity for advanced features on the iPhone.
Previous announcements from GlobalStar include one from 2022 that revealed Apple had invested $450 million in its U.S. infrastructure. Apple also supported GlobalStar’s expansion with loans.
It’s still unclear exactly how much the satellite features cost Apple. What is known is that the service remains free for iPhone users.
Apple initially said it would be free for two years after purchasing an iPhone. That would mean that the earliest iPhone 14 users would have to pay starting in September 2024.
However, in November 2023, Apple announced that all iPhone 14 users would get an extra year of free subscription. It made the same offer for iPhone 15 users, and presumably we can now expect it to do the same for iPhone 16 buyers.
Despite the extension last year, Apple initially made it clear that the service would only be free for a limited time. However, two years later, the company has yet to announce pricing for the service.
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