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.
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.
