Globalstar’s FCC Petition Possibly… Positive!

Globalstar, Inc. [NASDAQ:GSAT] has learned the U.S. Federal Communications Commission (FCC) has released a Notice of Proposed Rule Making (NPRM or Notice) in regards to Globalstar’s petition for increased authority to offer Ancillary Terrestrial Component services (ATC) in the U.S. in conjunction with its mobile satellite services. Some history is in order… 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 the company had experienced steady, significant increases in subscribership and had made a good case for additional 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 currently lacking affordable, high-speed broadband.




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—Milpitas, California