Profile: Globalstar, Inc. (GSAT.O)

Globalstar, Inc. is a provider of mobile voice and data communications services via satellite. Using, at any given time, approximately 48 in-orbit satellites and 26 ground stations, which the Company refers to as gateways, it offers voice and data communications services in over 120 countries. Unaffiliated companies, which the Company refers to as independent gateway operators and which purchase communications services from the Company on a wholesale basis for resale to their customers, operate 13 of these gateways. The Company’s telecommunications services include two-way voice communication between mobile or fixed handsets or user terminals and other mobile and fixed devices; two-way data transmissions between mobile and fixed data modems, and one-way data transmissions between a mobile or fixed device that transmits its location or other telemetry information and a central monitoring station. The equipment it offers to the customers consists principally of SPOT satellite messenger products; mobile telephones; fixed telephones; telephone accessories, such as car kits and chargers, and data modems. On March 25, 2008, the Company completed its acquisition of Globalstar do Brazil independent gateway operator that owns and operates three gateway ground stations in Brazil.

At December 31, 2008, the Company served approximately 344,000 subscribers. The Company’s principal services are satellite communications services, including mobile and fixed voice and data services, SPOT satellite messenger services and asset tracking, and monitoring services. Sales of all services accounted for approximately 72% of the Company’s total revenues during the year ended December 31, 2008. The Company also sells the related voice and data equipment to its customers, which accounted for approximately 28% of its total revenues in 2008.

Services

The Company offers its mobile voice and data services to customers via numerous monthly plans. Except for its asset tracking and remote monitoring service, which the Company refers to as its Simplex service, subscribers under these plans pay an initial activation fee to the agent or dealer, as well as a monthly usage fee to the Company that entitles the customer to a fixed number of minutes in addition to services, such as voicemail, call forwarding, short messaging, email, data compression and Internet access. The Company receives both an activation fee and monthly fee for Simplex services. Extra fees may apply for non-voice services, roaming and long-distance. It also introduced a number of pricing plans such as bundled minutes, Annual Plans and Unlimited Plans. Simplex is a one-way burst data transmission from a Simplex device to the Company’s network. As of December 31, 2008, the users include various governmental agencies, including the Federal Emergency Management Agency (FEMA), the United States Army and the Mexican Ministry of Education, as well as commercial and non-governmental organizations, such as General Electric, Dell and The Salvation Army. Its Simplex services are available in countries served by the gateways in North America, France, Venezuela, Mexico, Turkey, Korea, Australia, Singapore, Peru and Brazil.

The Company provides fixed voice and data services in rural villages, at remote industrial, commercial and residential sites and on ships at sea, among other places. Its fixed units also may be mounted on vehicles, barges and construction equipment and benefit from the ability to have higher gain antennas. The Company’s fixed voice and data service plans are similar to its mobile voice and data plans and offer similar flexibility. In addition to offering monthly service plans, its fixed phones can be configured as pay phones (installed at a central location, for example, in a rural village) that accept tokens, debit cards, prepaid usage cards, or credit cards. In addition to data utilization through fixed and mobile services, it also offers data-only services. It offers asynchronous and packet data service in all of its territories. It offers a data acceleration and compression service to the satellite data modem market. The Company also provides certain engineering services to assist customers in developing new technologies related to its system. These services include installation of gateways and antennas.

Products

The Company has introduced the SPOT satellite messenger, aimed at attracting both the recreational and commercial markets that require personal tracking, emergency location and messaging solutions for users that require these services beyond the range of traditional terrestrial and wireless communications. Simplex network and Web-based mapping software, this device provides consumers with the capability to trace geographically or map the location of individuals. The product also enables users to transmit messages to a specific preprogrammed e-mail address, phone or data device, including a request for assistance in the event of an emergency. The Company offers services for use only with equipment designed to work on its network, which is sold to users in conjunction with an initial service plan. The GSP-1700 phone includes a color liquid crystal display (LCD) screen and a rugged, water resistant case available in multiple colors. The Company has introduced the GSP-1720 modem. The GSP-1720 is a satellite voice and data modem board with multiple antenna configurations and an enlarged set of commands for modem control.

The Company competes with Inmarsat, Stratos Global Corporation, Telenor Satellite Services, Vizada, KDDI Corporation, The SingTel Group,Iridium, Iridium, Thuraya, ACeS, SkyTerra, and SkyTerra Inc., Optus MobileSat, ACR Electronics, McMurdo, TerreStar and ICOGlobal.