Apple lends Globalstar $252 million for satellite-enabled iPhones

Boeing 702X satellite (image: Boeing)
Apple’s groundbreaking safety service, “Emergency SOS via satellite,” is now available to iPhone users in the U.S., Canada, France, Germany, Ireland, and the U.K. on all iPhone 14 models. Apple’s innovative technology enables users to message with emergency services while outside of cellular and Wi-Fi coverage. Additionally, if users want to reassure friends and family of their whereabouts while traveling off the grid, they can now open the Find My app and share their location via satellite.
The entire iPhone 14 lineup offers Emergency SOS via satellite, so users in need can now message emergency services without Wi-Fi or cell service.
In a regulatory filing with the Securities Exchange Commission on February 28th, Globalstar said that Apple is lending the company $252 million to help cover upfront costs for replenishing its low Earth orbit (LEO) constellation.
Jason Rainbow for Space News:

Apple is providing the funds as a prepayment for using the network to upgrade satellite services launched last year for its latest iPhone, which can connect with one of Globalstar’s existing 24 satellites in LEO for emergency services outside cellular coverage.
Globalstar picked MDA and Rocket Lab in February 2022 to supply an initial 17 satellites for launch by the end of 2025 in a contract worth $327 million. The contract includes an option for up to nine additional satellites at $11.4 million each.
The satellite operator intends to fund any upfront costs not covered by Apple’s prepayment with its own cash.
Apple has already agreed to reimburse Globalstar for 95% of the constellation; however, it previously required the satellite operator first to raise third-party financing to fund the manufacturing contract.
Removing the need to raise this financing amid challenging macroeconomic conditions clears a significant degree of uncertainty for Globalstar’s constellation plans.

Globalstar has allocated 85% of the capacity on its next-gen satellite constellation to Apple. Legacy services including connectivity for Internet of Things devices is slated to use the remaining 15%.
MacDailyNews Take: Good news for Globalstar and iPhone users!
Emergency SOS via Globalstar’s satellite network 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. Satellites 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 breakthrough technology also allows users to manually share their location over satellite with Find My when there is no cellular or Wi-Fi connection, providing a sense of security when hiking or camping off the grid. Emergency SOS via satellite will be free for two years.
For users who go off the grid but don’t experience an emergency, this advanced technology also enables them to share their location via satellite with Find My. In the Find My app, users can open the Me tab, swipe up to see My Location via Satellite, and tap Send My Location. The satellite connection on the iPhone 14 lineup also works with other safety features available on iPhone and Apple Watch, including Crash Detection and Fall Detection.
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