MILPITAS, Calif., April 10, 2008 (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 issued a Report & Order expanding Globalstar's authority to offer Ancillary Terrestrial Component services (ATC) in the United States in conjunction with its mobile satellite services. The Report & Order concludes a rulemaking proceeding that the FCC began in November 2007 in response to a petition that Globalstar filed in June 2006.
In January 2006 the FCC authorized Globalstar to use 11 MHz of its 1.6/2.4 GHz mobile satellite service (MSS) spectrum for ATC. As a consequence of the FCC's decision today Globalstar is permitted to use 19.275 MHz of its spectrum for ATC.
In its release the FCC stated, "The Commission increases...the spectrum available for ATC in the Big LEO L-band from 1610-1615.5 MHz to 1610-1617.775 MHz, and in the Big LEO S-band from 2487.5-2493 MHz to 2483.5-2495 MHz." The FCC added, "This action will allow greater capacity and flexibility for MSS/ATC, and will allow...Big LEO MSS/ATC systems to provide improved service to customers, particularly in urban and underserved rural areas of the United States."
In the debate over whether Globalstar's operation in the 2493-2495 MHz portion of the S-band would cause interference into Broadband Radio Service (BRS) Channel 1 operations in the 2496-2502 MHz band, the FCC stated, "With adequate technical rules to protect BRS Channel 1 from harmful interference from ATC, there is no need to expand the one megahertz guard band at 2495-2496 MHz." Globalstar had previously committed to implement interference abatement measures.
"Developing the potential of our satellite spectrum and ATC authority is one of the cornerstones of our business strategy, thus we are extremely pleased with the decision and appreciate the FCC's diligence in completing this process promptly," said Jay Monroe, CEO and Chairman of Globalstar, Inc. Mr. Monroe added, "This decision provides potential partners with both the ability and the incentive to proceed with plans to develop and offer innovative and high quality ATC wireless services in conjunction with our satellite services. We can also continue our leadership role by working with Open Range Communications to establish the first rural broadband WiMAX service and by continuing to develop other innovative products and services using seamless satellite and terrestrial networks."
In late 2007 Globalstar signed an agreement with Open Range Communications Inc. permitting Open Range to deploy wireless broadband service in rural America using Globalstar's ATC authority. Last month Open Range secured approval of a $267 million broadband service loan from the Department of Agriculture's Rural Utilities program. Open Range proposes to use the Globalstar spectrum to deploy wireless WiMAX services to over 500 rural American communities that currently do not have adequate access to terrestrial-based broadband voice and data services. Customers outside of the WiMAX coverage area will be able to use Globalstar service over the satellites.
Globalstar plans to enter into discussions with other potential ATC partners to pursue the development of a variety of ATC wireless solutions for government, and commercial customers who may require terrestrial and satellite voice and data access, either temporarily or as part of their permanent telecommunications infrastructure.
About Globalstar, Inc.
Globalstar offers satellite voice and data services to commercial and recreational users in more than 120 countries around the world. The Company's 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 and personal 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 enter into discussions with other potential ATC partners to pursue the development of a variety of ATC wireless solutions for government, commercial and rural customers," 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.