Apple giving Globalstar a $242 million investment in the form of a loan

Apple has invested early half a billion dollars into its satellite communications partner Globalstar. Now the tech giant is giving Globalstar an US$252 million investment comes in the form of a loan, according to 9to5Mac.

A September 2022 SEC filing from Globalstar revealed that Apple plans to use 85% of its current and future network capacity for its services to iPhone 14 consumers, and pay for future satellite upgrades. All the new iPhones pack a new feature called Emergency SOS via Satellite. 

The feature combines custom components deeply integrated with software to allow antennas to connect directly to a satellite, enabling messaging with emergency services when outside of cellular or Wi-Fi coverage. Apple says that aatellites are moving targets with low bandwidth, and it can take minutes for messages to get through. Since every second counts, with Emergency SOS via satellite, iPhone front-loads a few vital questions to assess the user’s situation, and shows them where to point their phone to connect to a satellite. 

The initial questionnaire and follow-up messages are then relayed to centers staffed by Apple‑trained specialists who can call for help on the user’s behalf. This technology also allows users to manually share their location over satellite with Find My when there is no cellular or Wi-Fi connection. Emergency SOS will be free for two years.

Apple will use Globalstar satellites for Emergency SOS via Satellite. The company already uses the satellite network for its location-tracking feature known as Find My. Apparently, Apple’s loan to Globalstar is to keep the company afloat during the two year that Emergency SOS is provided for free.

Globalstar is an American satellite communications company that operates a low Earth orbit satellite constellation for satellite phone and low-speed data communications. The Globalstar second-generation constellation consists of 24 low Earth orbiting satellites.