Globalstar Inc (GSAT)

[Posiden]

Forget Kerrisdale and Cramer's bear raid on GSAT. Here's what's going to happen. The FCC is going to approve TLPS in the coming months and the stock price is going to explode.

Here's why:

GSAT has already licensed the proposed TLPS frequencies of 2483.5-2495mhz and has been using it in it's mobile satellite services operation for years.

Funny enough, the current wifi devices and smart phones specification are allowed to be very lax about going below their lowest operating frequency of 2400mhz, but they are designed to strictly avoid the higher frequencies above 2483.5mhz. Want to know why? To protect Globalstar's long standing licensed operation in the 2483.5-2495mhz range for it's already existing mobile satellite service business.

The FCC is eager to open up more frequencies for consumer wifi use, and Globalstar already operates (read: has paid the FCC for a long time) on these frequencies via it's MSS operations.

If you read all of the big name players official "comments" to the FCC in regards to this case, they are not arguing against Globalstar being allowed to use these frequencies for wifi, but they are arguing against globalstar having any special privileges, restrictive recourse, or protections. It's as if they all strongly assume that the FCC will grant GSAT an allowance.

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The actual implementation of TLPS is a completely different story and a giant hurdle none-the-less:

Current devices would need a firmware upgrade in order to utilize the new band, specifically the WLAN chipset would have to be reprogrammed to allow the use of these previously prohibited frequencies.

Device and chipset manufacturers would have to make their new products to include the allowance of TLPS frequencies.

Microwave ovens would heavily degrade any wifi signal on these frequencies. (97% of homes have microwaves; truly a "universal appliance" in the US)

The footprint and terrestrial based build out would be immense and costly.