Globalstar, a satellite operator, saw its stock jump more than 30% on Nov. 1 after disclosing Apple's plans to invest $1.5 billion in a new constellation to improve space-based communications for iPhones.

Apple will take a 20% equity stake in the constellation for $400 million, if the deal closes as expected on Nov. 5, and will make $1.1 billion in staggered cash prepayments to Globalstar to help fund the network.

Globalstar will use about $232 million of this cash to reduce its debt burden.

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

While this space-enabled capability now also includes basic texting, the low Earth orbit (LEO) network does not provide more bandwidth-hungry services such as voice and broadband.

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

SpaceX is slated to begin launching those satellites next year.

However, Globalstar has declined to comment on what upgrades could be coming to iPhones that can access its refreshed constellation.

A Nov. 1 regulatory filing about Apple’s latest investment also does not include details about what Globalstar is calling an “Extended MSS [Mobile Satellite Services] Network.”

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

MDA has also declined to comment on whether Globalstar/Apple is behind a contract it 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 across existing and new satellites would remain unchanged following the deal.

Globalstar also plans to continue using remaining satellite capacity to support its legacy business, including providing connectivity to remote monitoring and tracking devices.

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

Globalstar’s shares closed up 31.43% to $1.38. Apple’s shares slipped 1.33% to $222.91.