Apple expands iPhone satellite services deal, commits $1.1bn to expand capacity

Satellite services provider GlobalStar today disclosed an expansion of its deal with Apple. Apple will commit an additional $1.1 billion for upfront infrastructure prepayments, to increase the capacity of satellite services. Additionally, Apple will take 20% ownership of GlobalStar, in an equity deal worth about $400 million.

The news has sent GlobalStar stock soaring, and it hints towards Apple’s growing plans for iPhone satellite features. With iOS 18, for instance, iPhone users are now able to send text messages to friends and family over satellite, when outside of cellular or WiFi range.

Apple continues to commit significant financial resources to providing satellite features, while offering the feature for free to end users. However, it has repeatedly signalled that it intends to charge fees to iPhone users at some point.

Satellite connectivity for Emergency SOS first launched with the iPhone 14 in 2022. At the time, Apple said that satellite would be free for two years. That means customers would have had to start paying around now, in late 2024. However, Apple extended the free period until 2025.

Apple has yet to confirm how much it intends to charge for the satellite features. It’s a hairy subject as much of the current offering relies on using satellite during life-threatening emergencies, which feels rather punitive for Apple to charge for. It is possible the company will continue to offer Emergency SOS for free, while charging for other features like the ability to share location in Find My or the new iOS 18 capability to send text messages over satellite recreationally. Others have speculated satellite service may be rolled into the Apple One bundle, or be offered through mobile carrier add-ons.

Satellite connectivity is supported on iPhone 14 and later models. Normally, satellite connectivity is only activated when outside of cellular or WiFi range. However, you can try out satellite in a demo capacity on your phone right now by navigating to Settings -> Emergency SOS -> Emergency SOS via Satellite -> Try Demo.