Amazon has taken a significant step to expand its presence in the satellite connectivity market by applying for an FCC license to operate a new constellation of 5,105 satellites designed to provide direct service to mobile phones. The planned satellite launches are set to begin in 2028. This application follows Amazon’s recent $11.57 billion acquisition of Globalstar’s satellite operations, a company known for offering emergency connectivity services for Apple iPhones and IoT devices.

The new network aims to leverage Globalstar’s existing radio spectrum while integrating it with Amazon’s Leo broadband satellite system. This move positions Amazon as a more direct competitor to SpaceX, which currently dominates the satellite internet and satellite-to-mobile sectors. SpaceX has announced plans to invest $20 billion purchasing satellite spectrum from EchoStar to expand its mobile service constellation, a core element of its growth strategy outlined in recent IPO filings.

Despite this ambitious expansion, satellite-to-mobile connectivity remains a niche service with limited bandwidth capacity, typically suitable only for emergency use or text messaging. T-Mobile’s CEO Srini Gopalan highlighted the current lack of widespread consumer demand, noting that satellite usage among its network users is minuscule and primarily restricted to remote areas like national parks.

Amazon faces additional challenges with satellite deployment as it does not have its own rockets for satellite launches. Its initial reliance on Blue Origin’s New Glenn rocket has encountered delays following a significant launch failure in May 2026. Although this setback forced Amazon to request an extension on its FCC build-out deadline, the company’s robust financial health—holding $255 billion in assets as of April—provides it with a strong foundation to continue investing aggressively in building out its satellite network.