Apple has agreed to buy a 20 percent stake in satellite service provider Globalstar for $400 million. Apart from this, the tech giant has also entered into a cash pre-payment agreement, which will help expand Globalstar's operations on the ground and in the air.
In 2022, Apple entered into a partnership agreement with Globalstar. With this deal, iPhone 14 users can use the emergency messaging service even outside of traditional cellular or Wi-Fi networks. This service is free for the first two years. However, at the end of 2023, Apple extended the period of free use of this service for another year for iPhone 14 users.
The iOS 18 update gives this feature a wider range of uses beyond just emergencies. iPhone users can now send and receive texts, emojis and tapbacks using the satellite service in SMS and iMessage. According to Apple, iMessages sent via satellite are fully end-to-end encrypted, which will give users more security.
Globalstar said in a filing with the US Securities and Exchange Commission that Apple will take several other important steps. The tech giant will make a pre-payment of Rs 110 crore to help build new satellite constellations, boost regional infrastructure and expand global licenses. This amount will be paid on quarterly basis during the construction process. Some of the money will also help pay off Globalstar's debt.
If all goes well, the 20 percent acquisition deal will be signed later this week.
On the other hand, most analysts believe that Apple will start charging for its satellite services. However, this decision is not yet final. When that time comes, it's not yet clear what the service will look like. But Apple will have enough time to mature this feature and may pressure customers to pay before its functionality is proven.
Since this is an emergency use feature, it will be difficult to convince iPhone users to spend money to use the feature. Users can now send simple messages to friends and family even when they are outside the Internet network. So the feature becomes more attractive. If this feature also includes voice calls or data services in the future, it will become even more attractive.
References: techspot
