MILPITAS, Calif., May 19, 2008 (PRIME NEWSWIRE) -- Globalstar, Inc. (Nasdaq:GSAT), a leading provider of mobile satellite voice and data services to businesses, governments and individuals, today announced it has signed an agreement with Hughes Network Systems, LLC (HUGHES), the global leader in providing broadband satellite networks and services for enterprises, governments, small businesses, and consumers. According to the contract, Hughes will work with Globalstar to develop a proprietary satellite air interface and will deliver the next-generation ground network equipment and software upgrades for installation at Globalstar's satellite gateway ground stations. Globalstar expects that the ground network, combined with its second-generation satellite constellation scheduled to be launched beginning in the second-half of 2009, will provide Globalstar with the ability to offer advanced wireless voice and high-speed IP Multimedia Subsystem (IMS) services, as well as seamless handoffs to terrestrial networks using multi-mode user terminals.
In addition to $75.1 million of ground network upgrades, Hughes also will design and supply Globalstar with approximately $25.7 million of satellite interface chips. Globalstar will use these chips to provide satellite capability to various next-generation Globalstar handsets, fixed units and modem-equipped transceivers and transmitters. Globalstar also expects to provide these chips to various manufacturers of terrestrial wireless devices. This will provide Globalstar with the ability to offer device manufacturers the chips needed for Globalstar satellite compatibility for as little as $10 per chip.
"We are extremely pleased to award this contract to Hughes and initiate what we expect will be a long-term and rewarding relationship with the world's leading provider of satellite broadband networking solutions," said Jay Monroe, Chairman and CEO of Globalstar, Inc. "By signing this agreement we have completed our second-generation system design and operations plan, paving the way for our next generation advanced wireless services. In addition, this agreement not only provides us with options to fully outfit our entire ground segment, but it also provides us with continued compatibility with our first-generation products plus unique flexibility for upgrades, and thus a long-term competitive advantage over our MSS competitors."
Globalstar's unique network architecture utilizing low-earth-orbit (LEO) satellites and multiple gateways provides customers with localized access and superior voice quality with virtually no latency or delay when transmitting voice or data. Because Globalstar's ability to provide new services is based primarily on its ground network, adapting to emerging technologies and accommodating future wireless standards is fundamentally dependant on the Company's ground segment. This is a key technical, operational and competitive advantage for Globalstar, as the new ground network provides the flexibility to accommodate future upgrades after the launch of the second-generation Globalstar satellites and without the high cost of adapting its space segment or satellite design.
The new ground network is designed to support speeds of 1Mbps to the subscriber equipment and 256 Kbps to the satellites with a flexible all Internet protocol (IP) implementation. Globalstar continues to evaluate a host of high-speed, next-generation services that are supported by these data rates. These include services such as push to talk and multicasting, advanced messaging capabilities such as multimedia messaging or MMS, and the ability to support mobile video applications and geolocation services. Subscriber terminal or handset considerations include smaller form factor designs with multi-band and multi-mode capability, GPS integration, as well as development of fixed phone, video units and car kits. Because Globalstar will also retain the operating first-generation ground network at its gateways, it plans to continue providing backwards compatibility for the over 293,000 current Globalstar subscribers.
"As market leaders in the design and development of mobile satellite systems and user devices, we are excited to have been selected by Globalstar as the designer and supplier of their next-generation gateways and satellite air interface chips for the user terminals," said Pradman Kaul, chairman and CEO of Hughes. "We look forward to manufacturing and deploying Globalstar's flexible ground network and being part of supplying their customers with unique new solutions that only Globalstar, as a global LEO MSS operator, can provide."
About Globalstar, Inc.
Globalstar offers satellite voice and data services to commercial and recreational users in more than 120 countries around the world. Globalstar'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
About Hughes Network Systems
Hughes Network Systems, LLC (HUGHES) is the global leader in providing broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. HughesNet(r) encompasses all broadband solutions and managed services from Hughes, bridging the best of satellite and terrestrial technologies. Its broadband satellite products are based on global standards approved by the TIA, ETSI and ITU standards organizations, including IPoS/DVB-S2, RSM-A and GMR-1. To date, Hughes has shipped more than 1.5 million systems to customers in over 100 countries.
Headquartered outside Washington, D.C., in Germantown, Maryland, USA, Hughes maintains sales and support offices worldwide. Hughes is a wholly owned subsidiary of Hughes Communications, Inc. (Nasdaq:HUGH). For additional information, please visit www.hughes.com.
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, "Globalstar expects that the ground network, combined with its second-generation satellite constellation scheduled to be launched beginning in the second-half of 2009, will provide Globalstar with the ability to offer advanced wireless voice and high-speed IP Multimedia Subsystem (IMS) services," 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 the SPOT Satellite Messenger, 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.