Apple is taking steps to enhance its satellite communication capabilities, committing up to $1.5 billion to Globalstar, a satellite provider, as part of a deal aimed at expanding its iPhone communication services. The investment, disclosed in a regulatory filing on Friday, will support the development of new satellites and ground infrastructure to provide more extensive connectivity options for Apple users.

Under the terms of the agreement, Apple will invest $1.1 billion in cash and acquire a 20-percent equity stake in Globalstar for $400 million. A portion of these funds will be allocated to pay down Globalstar's existing debt, according to Globalstar. The deal, expected to close on Tuesday, will also require Globalstar to allocate 85 percent of its network capacity exclusively to Apple.

The collaboration between Apple and Globalstar follows their initial partnership in 2022, which enabled iPhone users to send emergency messages via satellite in remote areas lacking standard mobile network access.

Currently, owners of the latest iPhone models – iPhone 14, iPhone 15 and iPhone 16 – can use Globalstar's satellites for emergency services through the Emergency SOS feature, which Apple provides at no additional cost. Recently, Apple expanded this feature to include text messages, providing more robust communication options for iPhone users.

Neither Apple nor Globalstar has commented on the specifics of the future services this investment will support. However, Apple's funding will allow Globalstar to deploy a new satellite constellation and upgrade its ground infrastructure, contributing to a new "mobile satellite services" network, according to the company's recent SEC filing. Currently, Globalstar operates 31 satellites and has ordered up to 26 new satellites to enhance and replace its current low Earth orbit constellation.

Apple's investment also represents a broader trend in the tech and telecom industries to offer satellite-based services for customers in regions with limited traditional network access. With other major players like Google, T-Mobile, Verizon and AT&T making strides in satellite partnerships, the competition in providing space-based connectivity is heating up.

T-Mobile, for example, has partnered with SpaceX's Starlink to send emergency messages during recent hurricanes, while Verizon and AT&T have teamed up with Amazon's Project Kuiper and AST SpaceMobile, respectively, to offer expanded satellite connectivity.

(With input from agencies)