MDA Space To Build Satellites For Apple’s Globalstar – But Will Starlink Affect The Deal? 

Globalstar’s footprint in Low Earth Orbit is about to proliferate after MDA Space won a CAD$1.1 billion contract. The signed definitive agreement will see MDA Space build over 50 satellites for the Apple supported company. 

However, Apple recently conducted secret dealings to introduce Elon Musk’s Starlink to their devices via T-Mobile. The MDA Space satellite deal is still going ahead, but being significantly backed by Apple, Globalstar may get caught in the fallout. Nonetheless, the deal will see more Globalstar satellites in orbit in the coming years. 

MDA Space CEO, Mike Greenley, commented: “We are pleased to once again be working with Globalstar as they develop their next generation LEO constellation. With the full contract now in place, we are moving full speed ahead on the program.” 

MDA Space & Globalstar Contract For 50 Aurora Satellites

By inking the deal, MDA Space will now be tasked with building 50 Aurora satellites for Globalstar’s pending LEO constellation. The Apple-backed company went to market to secure more satellites for their growing in-space assets. That’s where MDA Space came in with their “software-defined digital” satellites. 

Aurora has the capability to conflate users with satellite connectivity “[in] every corner of the globe, no matter how remote or underserved,” MDA Space said. To build the satellites will be a tricky feat. However, MDA Space said they have the scalability to build the required spacecraft via automation and robotics. 

Seemingly, the contract has been in the works for a number of years. Back in 2023, MDA Space announced an Authorisation to Proceed agreement with an unnamed client. Now the deal has been signed, MDA Space said “approximately $750 million will be added to the company’s backlog in the first quarter of fiscal 2025.” Yet, the deal has ballooned after an additional $350 million was added. The total sum is now at $1.1 billion. 

Apple, T-Mobile & Starlink’s Backdoor Dealings

Major tech conglomerate, Apple, are 20% owners of Globalstar and use the company’s satellite capabilities for their devices, such as the iPhone. To ensure users can make contact to emergency services or call others outside of cellular range, Globalstar has been integral in providing this service. However, the relationship that’s been cemented since 2022 is seeming to crack after T-Mobile announced the Starlink deal. Consequently, Globalstar’s share price saw a steep decline post T-Mobile’s proclamation. 

Starlink integration with Apple is still in its infancy. T-Mobile is currently undertaking a beta-test and the connection is only responsive to texting and out of service area calls. Not to mention, the test is purely for United State’s based customers only. Once Starlink is fully integrated and the impending updates that will unlock greater features – including streaming – are released, this could drastically impact Globalstar. The true extent of how adverse the Starlink deal will be for Globalstar is yet to be seen.