Apple Satellite Partner Signs C$1.1 Billion Agreement to Manufacture Satellites and Compete with SpaceX’s Starlink

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Apple Teams Up with Globalstar: A Major Step in Satellite Connectivity

Apple has forged a significant partnership with Globalstar, its mobile satellite service (MSS) collaborator, through a substantial C$1.1 billion contract. This agreement involves the production of over 50 satellites in collaboration with MDA Space, a leading Canadian firm known for its expertise in Earth observation and communications satellite technology. This strategic move comes as Apple positions itself in the competitive landscape shaped by SpaceX’s expansive Starlink satellite network, particularly as both companies aim to deliver direct-to-cellular connectivity solutions.

Investments and Collaborations in Satellite Technology

In November 2023, Apple made headlines by acquiring a 20% stake in Globalstar as part of a C$1.5 billion deal. This financial commitment included C$400 million designated for equity purchase, allowing Apple to gain its minority stake in Globalstar, while the remaining C$1.1 billion is intended to assist Globalstar in alleviating debt and developing the MSS infrastructure.

MDA Space: Innovations in Satellite Production

In a related development, MDA Space disclosed a C$180 million contract aimed at initiating construction on the new satellite series. Though initially confidential, it was confirmed that Globalstar is the customer behind this contract. MDA’s project encompasses a total contract value of C$1.1 billion, allowing Globalstar to acquire more than 50 of MDA’s cutting-edge Aurora satellites.

The Advanced Aurora Satellite Technology

Launched in 2023, MDA’s Aurora satellites are engineered for versatility, capable of traveling across multiple non-geostationary orbits while also being self-reconfigurable in space. Their innovative onboard regenerative process is designed to optimize communication routes amongst the satellite cluster. These satellites are categorized as software-defined spacecraft, and to meet the growing demand, MDA is expanding its production facility in Quebec, targeting a production rate of two Aurora satellites per day.

A Broader Industry Landscape: Competition in Low-Earth Orbit

In addition to Globalstar, Telesat, another Canadian satellite communications company, has also opted for MDA’s Aurora technology. Under this agreement, Telesat will receive a total of 198 satellites, further contributing to the growing constellation in low-Earth orbit (LEO).

The Rise of Low-Earth Orbit for Connectivity Solutions

LEO has become the focal point for satellite communication providers in recent years, primarily driven by the success of SpaceX’s Starlink satellite internet constellation. SpaceX currently boasts the largest LEO satellite network worldwide, and in addition to fulfilling Apple’s and Globalstar’s needs, Amazon’s Kuiper project plans to utilize this orbit as well for delivering internet services.

Kuiper intends to launch its satellites using Blue Origin’s New Glenn rocket and will establish a network architecture akin to that of Starlink, fostering user connectivity. Notably, SpaceX has already commenced cellular coverage services through its partnership with T-Mobile, setting a precedent for future LEO network capabilities.

Recent Innovations in Satellite Communications

Recent advancements in satellite communication technology include a groundbreaking achievement by AST SpaceMobile, which conducted the first space-based video call in Europe, enabled by a partnership with Vodafone. Additionally, SpaceX’s Elon Musk has suggested that the Starlink network will soon facilitate low-quality video streaming on smartphones—an endeavor that could significantly enhance user engagement. This early mover advantage has allowed Starlink to capture a substantial share of the global satellite internet market and expand its services into commercial airlines.

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