Amazon has announced an $11.57bn deal to buy Globalstar as it looks to increase its space presence and compete with Elon Musk’s Starlink.

Globalstar operates a satellite constellation in low-Earth orbit for phone service, low-speed data transmission and Earth observation. The firm should enhance Amazon Leo’s satellite broadband services to help it compete with Starlink, which is the current market leader.

In particular, Globalstar’s technology would enable Leo to offer direct-to-device (D2D) services that allow smartphones to connect to space-based 4G and 5G networks without any additional hardware.

“There are billions of customers out there living, travelling and operating in places beyond the reach of existing networks, and we started Amazon Leo to help bridge that divide,” said Panos Panay, Amazon’s senior vice-president of devices & services. “By combining Globalstar’s proven expertise and strong foundation with Amazon’s customer obsession and innovation, customers can expect faster...