Home, Home on the Open Range

Great news for 500 rural communities—Globalstar, Inc. [NASDAQ:GSAT] has announced that Open Range Communications, Inc. has secured approval for a 257M/USD broadband loan from the Department of Agriculture‘s Rural Utilities Program. With this plan in place, Open Range expects to initially deploy its infrastructure into more than 500 rural communities involving over 6 million people, which will increase their economic opportunities and improve their quality of life. The plan calls for coverage to be deployed in rural communities with average populations of approximately 10,000 people. Service is to begin in selected markets in 2008. The agreement contemplates using the Globalstar spectrum to offer dual mode mobile satellite based and terrestrial wireless WiMAX services to 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. The agreement is contingent on various conditions, including Globalstar’s receipt of authority from the FCC to use an expanded portion of its licensed spectrum for ATC services. The term of the agreement is 30 years, is co-extensive with Globalstar’s ATC authority and is subject to renewal options exercisable by Open Range—Milpitas, California