Apple to Invest up to $1.5 Bln in Globalstar for Satellite Coverage Expansion

 30 October 2024, US, New York: The Apple store is pictured on Fifth Avenue in Manhattan. (dpa)
30 October 2024, US, New York: The Apple store is pictured on Fifth Avenue in Manhattan. (dpa)
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Apple to Invest up to $1.5 Bln in Globalstar for Satellite Coverage Expansion

 30 October 2024, US, New York: The Apple store is pictured on Fifth Avenue in Manhattan. (dpa)
30 October 2024, US, New York: The Apple store is pictured on Fifth Avenue in Manhattan. (dpa)

Apple will invest up to $1.5 billion in Globalstar to fund the expansion of its iPhone communication services, the satellite provider said in a regulatory filing on Friday.

Shares of Globalstar jumped over 30%, while Apple was down around 1.4% a day after it forecast tepid quarterly revenue growth.

Under the funding agreement, Apple will commit $1.1 billion in cash and also purchase 20% equity in Globalstar for $400 million. The satellite company said it will use a portion of the funds to pay down debt.

The move is another in a line of partnerships between space firms and mobile service providers looking to provide satellite-based connectivity to customers in regions with limited network access.

Globalstar also said it will allocate 85% of its network capacity to Apple. The deal is expected to close on Tuesday.

The iPhone maker partnered with Globalstar in 2022 for a feature that would allow Apple users to send emergency messages from remote areas.



Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
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Microsoft Pledges to Protect European Operations, Unveils Data Center Expansion

A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)
A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. (Reuters)

Microsoft pledged Wednesday to fight any US government order to halt data center operations in Europe as it sought to soothe concerns among European customers that trans-Atlantic tensions would lead to service disruptions.

The company's president, Brad Smith, said it's not something that officials are talking about in Washington, D.C. but it is a “real concern” for Microsoft's customers across Europe, which include governments.

President Donald Trump has stoked tensions between the US and Europe with his tariff-fueled trade war, and alarmed European leaders with policy changes, including pausing intelligence sharing with Ukraine, that throw into doubt his administration's commitment to the trans-Atlantic relationship, The AP news reported.

Smith, speaking at an event in Brussels, tried to allay concerns as he announced that the company was expanding data center operations across Europe.

“What we want Europeans to know is that they can count on us,” he said in a speech.

“In the unlikely event we are ever ordered by any government anywhere in the world to suspend or cease cloud operations in Europe, we are committing that Microsoft will promptly and vigorously contest such a measure using all legal avenues available, including by pursuing litigation in court,” Smith wrote in a Wednesday blog post.

He noted that Microsoft has experience fighting lawsuits from the previous Trump administration as well as from former President Barack Obama’s administration.

“If we ever find ourselves losing we will put in place business continuity arrangements” that include storing computer code in Switzerland that European partners can access, he said.

Microsoft is making five digital commitments to Europe, including increasing its data center capacity by 40 in 16 countries over the next two years, Smith said. The expansion will cost tens of billions of dollars annually. Smith declined to be more specific about the cost when asked by reporters.

The expansion comes amid calls for Europe to assert tech and data sovereignty by weaning itself off reliance from big US cloud data service providers, including Microsoft, Amazon and, to a lesser extent, Google.

“Given recent geopolitical volatility, we recognize that European governments likely will consider additional options,” and Microsoft is committed to collaborating with European companies, Smith said.