Apple makes $1.1 billion commitment to expand satellite messaging

AppleInsider

Apple is committing over a billion dollars more to its existing satellite provider GlobalStar in order to have it expand its ground bases and add more satellites for iPhone messaging.

Image Credit: Apple

Two years after it first launched Emergency SOS via Satellite with the iPhone 14, Apple is now working to greatly expand the facility. It's already added features such as Roadside Assistance via satellite, and expanded to non-emergency messaging.

Now its satellite provider GlobalStar has announced a new expansion of its Apple deal, which comes in two parts. The first has Apple paying up to $1.1 billion in upfront payments specifically so GlobalStar can add what it describes as a new satellite constellation.

The second is that Apple has now taken a 20% stake in GlobalStar. According to Street Insider, this is an equity deal that is worth approximately $400 million.

This announcement is a financial one from GlobalStar, rather than specific news of new features from either it or Apple. But it will result in greater capacity for expanded features on the iPhone.

Previous announcements from GlobalStar include a 2022 one where it revealed that Apple invested $450 million in its US infrastructure. Apple also supported GlobalStar's expansion with loans.

It's still not known precisely how much the satellite features have cost Apple. But what is known is that the service remains free to iPhone users.

Initially, Apple said that it would be free for two years after purchase of the iPhone. That would have meant the earliest iPhone 14 users having to pay from September 2024.

However, in November 2023, Apple announced that all iPhone 14 users would get an extra year free. It made the same offer for iPhone 15 users, and presumably now can be expected to for iPhone 16 buyers.

Despite that year's extension, Apple was initially quite clear that the service would be free for only a specific, limited time. Two years on, though, it has still to announce any pricing for the service.




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crofford

Used the emergency satellite service this past weekend. Had a flat in the mountains northeast of Phoenix in an area with no cell service. Within a few minutes AAA had dispatched a tow truck and I was also able to text the wife and let her know what was going on. Still took three hours for the tow truck to show up but could've been much worse.

tht

Hoping they expand this to be more featured, including data service. It's one of the few actual wireless data service improvements in a while, outside of the usual "getting faster".

alandail

Why don't they just use Starlink?

Itsfrankybitch

I love this feature. Been using it while im out hiking in Las Vegas area. It works perfect for me. Im hoping we can text pictures soon by satellite. I love It. 

jamnap

alandail said:

Why don't they just use Starlink?

I doubt Cook or Apple Board would ever consider any business relationship with Musk given their vast difference in beliefs (political/personal).  I have used Starlink from a remote mountain cabin and in the air (commercial airline) and it is very stable and fast. That said, Starlink would be a great company for Apple to invest in, as well as Sonos.

Fidonet127

People are over estimating how much bandwidth they can get between satellites and them. This is for low bandwidth applications. 

22july2013

Employers will love this feature, as it will make employees more reachable even when they are on vacation.

tht

alandail said:

Why don't they just use Starlink?

They might still use Starlink direct-to-cell services if the price is right, like you can use multiple networks/carriers with your eSIM.

They didn’t use Starlink direct-to-cell services in the first place because it wasn’t available in 2022, nor in 2023. Starlink didn’t launch cellular compatible satellites until this year and it was probably iffy that there was enough to support iPhones this year anyways. 

GlobalStar is the type of partner Apple loves. It looks to be a pretty sweetheart deal, and they are now minority owners. So, they can have tailored services to their liking and design more easily. That has a lot of advantages that a deal with Starlink can’t offer.

alandail

tht said:

alandail said:

Why don't they just use Starlink?

They might still use Starlink direct-to-cell services if the price is right, like you can use multiple networks/carriers with your eSIM.

They didn’t use Starlink direct-to-cell services in the first place because it wasn’t available in 2022, nor in 2023. Starlink didn’t launch cellular compatible satellites until this year and it was probably iffy that there was enough to support iPhones this year anyways. 

GlobalStar is the type of partner Apple loves. It looks to be a pretty sweetheart deal, and they are now minority owners. So, they can have tailored services to their liking and design more easily. That has a lot of advantages that a deal with Starlink can’t offer.

Starlink has the advantage no custom hardware is needed inside th3 phone.  SpaceX enabled starlink direct to cell functionality after the recent hurricanes for emergency service., including on phones apples solution won’t work on,

beowulfschmidt

22july2013 said:

Employers will love this feature, as it will make employees more reachable even when they are on vacation.

Well, if one doesn't have the cojones to simply not answer the phone while on vacation, or one can't afford to lose their job because of their employer's questionably legal requirement to be available when not being paid, then "Sorry, my phone doesn't have that capability."

entropys

tht said:

alandail said:

Why don't they just use Starlink?

They might still use Starlink direct-to-cell services if the price is right, like you can use multiple networks/carriers with your eSIM.

They didn’t use Starlink direct-to-cell services in the first place because it wasn’t available in 2022, nor in 2023. Starlink didn’t launch cellular compatible satellites until this year and it was probably iffy that there was enough to support iPhones this year anyways. 

GlobalStar is the type of partner Apple loves. It looks to be a pretty sweetheart deal, and they are now minority owners. So, they can have tailored services to their liking and design more easily. That has a lot of advantages that a deal with Starlink can’t offer.

From a user perspective starlink is vastly superior. On bandwidth reasons alone, not to mention the cellular service starting to rollout. I can’t believe what a difference it has made in outback Oz.  And constantly getting better rather quickly. I would hope politics is not a reason for this decision. That is not in shareholder interest.