MILPITAS, Calif., Nov. 9, 2007 (PRIME NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), a leading provider of mobile satellite voice and data services to businesses, government and individuals, today announced that the U.S. Federal Communications Commission (FCC) has released a Notice of Proposed Rule Making (NPRM or Notice) regarding Globalstar's petition for increased authority to offer Ancillary Terrestrial Component services (ATC) in the U.S. in conjunction with its mobile satellite services.
In January of 2006 the FCC granted Globalstar the authority to use 11 MHz of its 1.6/2.4 GHz assigned mobile satellite service (MSS) satellite radio frequencies for ATC. In June of 2006, Globalstar filed its petition with the FCC for authority to use more of its assigned spectrum for ATC services in the United States.
In the NPRM the FCC requested comment on expanding the L-band and S-band spectrum in which Globalstar may operate ATC to a total of 19.275 MHz. The FCC did not, however, propose to allow ATC in the 2496-2500 MHz portion of the S-band which Globalstar shares with the Broadband Radio Service ("BRS") or the 2495-2496 MHz guard band between Globalstar and BRS. The FCC asked for comments within 30 days of publication of its proposal in the Federal Register. Simultaneously, the FCC issued an order adjusting the boundary in the L-band between Globalstar's exclusive spectrum and Iridium's exclusive spectrum and proposed to authorize ATC over all 7.775 MHz of Globalstar's exclusive spectrum.
In issuing the Notice, the FCC noted Globalstar's assertions that it had experienced steady, significant increases in subscribership and had made a good case for more ATC spectrum. The FCC cited Globalstar's arguments that the company's ability to plan for ATC is clouded by the uncertainty as to the frequencies on which it will be allowed to offer ATC and that expanded ATC spectrum will afford Globalstar an opportunity in partnership with terrestrial wireless companies to provide broadband services in rural areas that currently lack affordable, high-speed broadband.
"We are extremely pleased with the FCC's proposal to increase our ATC authority, which would provide Globalstar with the ability to continue its leadership role in the development of innovative products and services and to work with others to develop a broader range of seamless terrestrial and satellite voice and high speed data wireless solutions," said Jay Monroe, CEO and Chairman of Globalstar, Inc. Mr. Monroe added, "Developing the potential of our ATC authority is one of the cornerstones of our business strategy. We are gratified that the Commission declined to permit additional sharing by Iridium in our L-band down to 1616 MHz, which would have diminished the amount of spectrum available to us for ATC. We are however considering our options regarding the FCC's adjustment to the boundary between Globalstar's and Iridium's spectrum in the U.S." Mr. Monroe emphasized that the FCC's decision on the L-band spectrum assignments has no effect outside the U.S. where Globalstar still has access to 27.85 MHz of satellite spectrum.
In the Notice, the FCC stated, "The ATC concept allows MSS operators to integrate terrestrial services into their satellite networks in order to augment coverage in areas where their satellite signals are largely unavailable due to blocking. In 2003, the Commission adopted the ATC Order, permitting MSS licensees to seek authority to implement ATC to be integrated into MSS networks in MSS bands, including the Big LEO bands. ATC allow MSS operators to expand their communications services to urban areas and in buildings where the satellite signal is weak by re-using their assigned MSS frequencies."
The FCC further noted, "Globalstar asserts that it has demonstrated the need for more ATC spectrum, citing its increase in customers and services, and states that its ability to plan for ATC is clouded by the uncertainty as to the frequencies on which it will be allowed to offer ATC."
If it receives increased ATC authority, Globalstar plans to seek partners to provide a broader range of ubiquitous and seamless wireless solutions, including as described in the Notice, "broadband services in rural areas that currently lack affordable, high-speed broadband." As noted in the NPRM, Globalstar is continuing its discussions with potential ATC partners to pursue the development of a variety of ATC wireless solutions for government, commercial and rural customers who may require terrestrial and satellite voice and data access, either temporarily or as part of their permanent telecommunications infrastructure. Globalstar is also keenly interested in supporting high-speed wireless broadband deployments using terrestrial and satellite capabilities in rural U.S. markets. To this end the company has been actively engaged in negotiations with prospective partners to develop and deploy such systems across rural America.
About Globalstar, Inc.
With over 275,000 activated satellite voice and data units, Globalstar offers satellite services to commercial and recreational users in more than 120 countries around the world. The Company's voice and data products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset tracking, data monitoring and SCADA applications.
For more information regarding Globalstar, please visit Globalstar's web site at www.globalstar.com
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, "Globalstar plans to seek partners to provide a broader range of ubiquitous and seamless wireless solutions, including as described in the Notice, "broadband services in rural areas that currently lack affordable, high-speed broadband," that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Globalstar's control, including demand for the Company's products and services; problems relating to the construction, launch or in-orbit performance of its existing and future satellites, problems relating to the ground-based facilities operated by it or by independent gateway operators; its ability to attract sufficient additional funding if needed to meet its future capital requirements; competition and its competitiveness vis-a-vis other providers of satellite and ground-based communications products and services; the pace and effects of industry consolidation; the continued availability of launch insurance on commercially reasonable terms, and the effects of any insurance exclusions; changes in technology; its ability to continue to attract and retain qualified personnel; worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis; and legal, regulatory, and tax developments, including changes in domestic and international government regulation.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and the Company undertakes no obligation to update any such statements. Additional information on factors that could influence Globalstar's financial results is included in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.