The FCC approved Amazon's $11.5 billion purchase of Globalstar, which could help Amazon offer phone-to-satellite service where cell signals do not reach.
Amazon just cleared a major hurdle in its push into satellite service for phones. The Federal Communications Commission said on Tuesday it approved Amazon Leo's $11.5 billion deal to buy Globalstar, according to Reuters. The approval gives Amazon access to Globalstar's 24 satellites and its mobile satellite spectrum.
Globalstar is a satellite company. Amazon Leo is Amazon's satellite business. With the deal approved, Amazon picks up Globalstar's 24 satellites, which orbit above Earth and relay signals.
It also gets the spectrum. Spectrum is the set of radio airwaves that lets satellites talk to phones. Rights to those airwaves are limited, so owning them matters.
Anyone who loses cell service when hiking, driving through remote areas, or traveling far from towers could eventually benefit. Amazon is moving toward phone-to-satellite service, which could mean more choices for coverage in places with no cell signal.
The material available so far covers only the FCC approval and the basic terms. Nothing has been announced about products or pricing.
Amazon now has the satellites and airwaves it needs for phone-to-satellite service, but no product, price or launch date has been announced.
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