MILPITAS, Calif., Nov. 4, 2008 (GLOBE NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), the world's largest provider of mobile satellite voice and data services to businesses, governments and individuals, today announced that the U.S. Federal Communications Commission (FCC) has issued an Order and Authorization modifying Globalstar's authority to offer Ancillary Terrestrial Component (ATC) services in the United States. This modification permits Globalstar's spectrum to be used 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.
In its release the FCC stated, "We modify Globalstar's license to permit use of the WiMAX air interface protocol...permitting Globalstar and its spectrum lessee, Open Range Communications, Inc. ('Open Range'), to commence deployment of a broadband service consistent with a $267 million loan commitment from the Department of Agriculture's Rural Development Utilities Program." This financing is contingent on various FCC conditions and other governmental approvals.
"We are very pleased that the FCC has authorized Globalstar and our WiMAX partner to proceed with adding WiMAX service to our mobile satellite service in rural communities throughout America beginning next year," said Jay Monroe, CEO and Chairman of Globalstar, Inc. Mr. Monroe added, "Those living in unserved and underserved small towns and rural communities will, for the first time, have access to services that urban and suburban residents and small businesses now take for granted. Today's FCC action is an important step in closing the digital divide in America. We expect our partner to initially deploy infrastructure in more than 500 rural communities with the ability to expand the relationship over the next six years to additional markets covering 50 million people or about 15% of the U.S. population."
Mr. Monroe stated, "This modification paves the way for Globalstar to continue proceeding with implementation of the world's very first ATC system agreement. Since the initial ATC rules were first established by the FCC in early 2003 Globalstar has been working diligently to complete the necessary FCC authorities and to establish partnerships to utilize our ATC spectrum. We expect our first such agreement to provide significant and meaningful revenue impact to Globalstar over the duration of our partnership and establish a framework for how global spectrum may be used more efficiently to the benefit of Globalstar, our partners and our customers. There are approximately 400 WiMAX networks in more than 130 countries and we expect this agreement to serve as a model for our discussions with other potential WiMAX partners looking to replicate the rural utility of our spare satellite capacity."
Globalstar plans to continue and initiate domestic and international discussions with other potential solution partners to pursue the development of a variety of ATC and ATC-type wireless solutions. Such agreements would provide 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. In April of this year the FCC authorized Globalstar to use up to 19.275 MHz of its spectrum for ATC services.
About Globalstar, Inc.
With over 300,000 subscribers, Globalstar is the world's largest provider of mobile satellite voice and data services. Globalstar offers these 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, "We expect our partner to initially deploy infrastructure in more than 500 rural communities with the ability to expand the relationship over the next six years to additional markets covering 50 million people or about 15% of the US population," and "Globalstar plans to continue and initiate domestic and international discussions with other potential solution partners to pursue the development of a variety of ATC and ATC-type wireless solutions," 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 our control, including demand for our products and services, including commercial acceptance of our new Simplex products, including our SPOT Satellite Messenger product, and the ability to retain and migrate our two-way communications services subscribers to our second-generation constellation when it is deployed; problems relating to the construction, launch or in-orbit performance of our existing and future satellites; including the effects of the degrading ability of our first-generation satellite constellation to support two-way communication; problems relating to the ground-based facilities operated by us or by independent gateway operators; our ability to attract sufficient additional funding to meet our future capital requirements including deployment of our second-generation constellation; 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; our 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 we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.