TAMPA, Fla. — Shares of satellite operator Globalstar closed more than 30% higher on Nov. 1 after revealing Apple’s plan to invest $1.5 billion in a new constellation aimed at improving space communications for iPhones.

Apple would take a 20% stake in the constellation for $400 million, if the deal closes as planned on November 5, and make $1.1 billion in staged advance cash payments to the operator to help it to finance the network.

Globalstar would use about $232 million of that cash to reduce its debt burden.

Apple has been using Globalstar’s current network of 31 L-band satellites since 2022 to give its latest iPhones access to emergency services when terrestrial networks are unavailable.

Although this space capability now also includes basic texting, the Low Earth Orbit (LEO) network does not provide more bandwidth-intensive services, such as voice and broadband.

After Apple agreed to cover most of the costs of replenishing the constellation in 2022, Globalstar awarded Canadian company MDA a $327 million contract to build 17 satellites, with options for up to nine additional satellites at $11.4 million each.

SpaceX is expected to begin launching these satellites next year.

However, Globalstar declined to comment on what upgrades might come to iPhones that can access its updated constellation.

A Nov. 1 regulatory filing for Apple’s latest investment also doesn’t include details about what Globalstar calls an “expanded MSS (mobile satellite services) network.”

Globalstar and Apple did not respond to a request for comment.

MDA also declined to comment on whether Globalstar/Apple was behind a contract he teased last year for 36 non-geostationary satellites.

In the regulatory filing, Globalstar said the operator’s commitment to allocate 85% of its network capacity to Apple on existing and new satellites would remain unchanged after the deal.

Globalstar also plans to continue to use remaining satellite capacity to support its existing operations, including providing connectivity to remote surveillance and tracking devices.

Apple’s latest Globalstar investment comes as SpaceX, AST SpaceMobile and others seek permission to use cellular spectrum from LEO space constellations promising to deliver broadband text, voice and satellite services directly on Android phones.

Shares of Globalstar closed up 31.43% at $1.38. Apple shares slipped 1.33% to $222.91.

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