Amazon Leo Wins FCC Approval for $11.5 Billion Globalstar Deal

The FCC has cleared Amazon Leo’s Globalstar acquisition. The $11.5 billion deal will expand Leo’s space-based footprint and support direct-to-device service across its growing satellite network. The approval arrives as satellite operators and mobile carriers chase the same stubborn problem: coverage that reaches people, but not every place they travel.

The FCC said the transaction is likely to benefit the public by enhancing data coverage in underserved areas. In its press release, the agency said, “The companies’ complementary assets promise to enhance Amazon Leo’s entry into the direct-to-device segment and create a stronger satellite operator capable of offering fixed and mobile services to residential, business, and government customers.”

Direct-to-device service lets an ordinary compatible cellphone connect straight to a satellite when no terrestrial tower is available. The satellite becomes a cell tower in space, with no satellite phone, dish, or other specialized equipment required—a rare case where the hardware list gets shorter instead of longer.

Globalstar already provides Apple’s emergency satellite connectivity for compatible iPhones and Apple Watch models. Apple held a 20 percent stake in Globalstar before its takeover, and Leo will power satellite services for supported iPhone and Apple Watch models as part of the deal.

Leo’s satellite network is still catching up

Amazon Leo is a rival to SpaceX’s Starlink, though the two networks are not operating at the same scale. Leo recently announced that it has 400 satellites in orbit, revealed high-quality satellite internet service in Uzbekistan, and is teaming up with Delta to bring satellite internet to flights.

Amazon also added six new Arianespace launches and aims to place more than 3,000 low-earth orbit satellites in service in the near future. SpaceX has 11,000 satellites, giving Starlink a substantial head start while Leo builds the network needed to support fixed broadband, mobile services, and direct-to-device connections.

The coverage gap gives both systems a clear target. The FCC says 95 percent of the U.S. population can receive 5G service from at least one carrier, but only 69 percent of the nation’s road miles and 39 percent of its land area have that coverage. In rural America, those figures fall to 60 percent and 38 percent.

The mismatch explains the appeal of satellite connectivity. Mobile coverage can exist in an area while high local demand and limited spare capacity prevent a carrier from offering unlimited home service. Starlink, meanwhile, targets remote properties where good mobile coverage is unlikely, although its dish needs a clear view of the sky because trees and buildings can block passing satellites.

Satellite service fills gaps, not every broadband need

Starlink’s broadband performance now overlaps with some 5G home internet plans. Its US residential options include plans capped at 100 Mbps and 200 Mbps, while the Residential Max plan offers download speeds of 400 Mbps or more. T-Mobile lists typical download speeds of 170 Mbps to 498 Mbps for some 5G Home Internet plans.

Real-world results vary by location and network conditions. PCMag’s 2026 testing in rural Idaho recorded daily Starlink Residential Max averages between 145 and 170 Mbps, while testing from 2025 ranged from 20 Mbps to 250 Mbps. Opensignal measured average downloads of 249 Mbps on T-Mobile and 184.3 Mbps on AT&T; Ookla’s 2026 report recorded 314.38 Mbps for T-Mobile and 218.96 Mbps for Verizon.

5G also carries practical limits. Low-band signals travel farther and pass through more obstacles, mid-band balances coverage and speed, and high-band offers more bandwidth but struggles with obstacles. The 5G symbol guarantees none of the fastest version, because carriers use a mix of frequency bands.

T-Mobile lists typical home internet uploads between 12 and 55 Mbps, with latency from 16 to 28ms. Starlink reports US median peak-hour latency of 25.7ms, but congestion can affect users during busy periods, while heavy rain or wind can slow speeds or cause a full outage in extreme cases.

T-Mobile’s Rely, Amplified, and All-In 5G home internet plans cost between $50 and $70 a month, plus taxes and fees. Starlink prices start at $55 for 100 Mbps, rise to $85 for 200 Mbps, and reach $130 a month for Residential Max; unlimited roam plans cost up to $175. Starlink offers no free trials, but it provides a 30-day money-back guarantee.

The FCC established the 5G Fund in 2020, making up to $9 billion in Universal Service Fund support available over 10 years for mobile service in high-cost areas. Existing rules require recipients to deliver conventional 5G speeds that today’s satellite service cannot yet provide.

A direct-to-device tier could address the gap by funding basic mobile coverage where towers cannot make economic sense. Carriers could bid for the minimum subsidy needed to provide satellite coverage in designated unserved areas, with support tied to availability, reliability, emergency communications, and compatibility with widely used handsets.

T-Mobile already offers direct-to-device service through Starlink, including it with some plans and selling it to eligible users on competing carriers for $10 a month per line. AT&T and Verizon have their own satellite partnerships, and in May all three carriers announced plans for a joint venture to expand direct-to-device coverage, pool spectrum, and make it easier for satellite operators to reach customers.

The FCC’s own figures capture the challenge: networks reach nearly everyone, but not nearly everywhere. Amazon Leo’s Globalstar deal does not erase that divide, but it gives Leo the assets and approval to compete for the missing coverage—and turns another satellite constellation into part of the mobile network’s backup plan.

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