Apple has taken a significant step in its satellite communication strategy by acquiring 20% of GlobalStar, a key partner in providing satellite connectivity for iPhones.

Globalstar renewed its service agreement with Apple to expand its mobile satellite network, launch a new constellation of satellites, and improve ground infrastructure. Under this agreement, Apple will make a prepayment for the services, while Globalstar will retain all revenue from terrestrial and satellite services and allocate 85% of network capacity to Apple.

Expanding its iPhone satellite connectivity partnership with Globalstar, Apple will acquire 20% of the company, valued at $400 million. Additionally, Globalstar will receive a $1.1 billion prepayment from Apple to enhance its satellite infrastructure.

In 2022, Apple introduced the Emergency SOS feature on iPhone 14 and expanded it with iOS 18, enabling users to send and receive texts, emojis, and tapbacks via iMessage and SMS while off the network.

Apple plans to eventually charge users for satellite connectivity, though it has not done so yet. Starting with iPhone 14, the company provided two years of free access to satellite features. Last year, iPhone 14 users received an additional year, extending the free service until at least November 2025.