Summary
Globalstar, Inc. (GSAT) filed an 8-K on March 21, 2011, primarily detailing recent regulatory developments and a minor amendment to its financing agreement. The most significant event for investors is the FCC's International Bureau order on March 18, 2011, which modifies licenses for certain Globalstar subsidiaries. This modification allows Globalstar to transmit signals from its second-generation satellites to ground stations and mobile earth terminals within the United States, subject to French authorization and UN registration. This FCC decision is a crucial step towards operationalizing Globalstar's next-generation satellite network in the U.S. market. The report also indicates an amendment to the Facility Agreement, extending the deadline for Globalstar to provide a certified copy of an initial special temporary authority from the FCC to March 31, 2011. This extension, while relatively short, suggests ongoing discussions and a need for further regulatory progress related to their financing.
Key Highlights
- 1FCC order on March 18, 2011, modifies licenses for Globalstar subsidiaries.
- 2Order permits transmission of signals from 2nd generation satellites to U.S. ground stations and mobile terminals.
- 3U.S. transmission capability is contingent on French authorization and UN satellite registration.
- 4Amendment to Facility Agreement extends FCC temporary authority delivery deadline to March 31, 2011.
- 5The FCC's action is a positive development for the potential activation and use of Globalstar's new satellite technology.
- 6Press release regarding FCC action filed as Exhibit 99.1.