Globalstar Inc (GSAT)

[JPRMarketing]

Great analysis of the GSAT YIPI deal on another board that is going to propel both stocks in the next few months/years

Revenue streams to YIPI through the GSAT agreement are being totally missed. The mentions about $3 monthly subscription fee/per user seems to be heavily focused on and touted as the bar for future revenue evaluation. There is exponentially more revenue streams outside $3 fee righted to Yippy in the agreement - GSAT-YIPI Agreement

If you are only accounting for $3 sub-fee to assess potential YIPI revenues and that excites you, then prepare to be screaming like a little girl after calculating all revenue streams granted to Yippy by right in the agreement.

I will rate upside potential 1-4
1 - small revenue upside potential
2 - mid-level revenue upside potential
3 - substantial revenue upside potential
4 - game changing revenue stream


•Right to resell all Globalstar equipment and services
1 - typical revenue through VAR channel

•Yippy may sale, lease or loan 3rd party equipment or directly manufacture 3rd party equipment in conjunction with GSAT Services
2 - Yippy has the right to create additional proprietary equipment for sale in conjunction with GSAT Services. Yippy can source and bundle existing 3rd party equipment.

Yippy development of User Terminal for sale to Yippy customers in conjunction with GSAT services. Globalstar will offer the Yippy Developed Equipment (YDE) offering to all current customers at the price identified by Yippy
4 - Yippy will undoubtedly create a User Terminal for it's customers (probably already started IMO). This additional offering from Yippy is price controlled and will automatically have GSAT as a channel partner marketing and promoting the YDE to a huge user base. $$$$$$

•Yippy able to sell insurance policies for GSAT equipment
1 - High margin line of business

and the one I don't think anyone has mentioned and is absolutely astonishing and by far going to be the biggest revenue stream is this;

GSAT provides Grant of Access to 20% of Colocation Space of GSAT Gateways with respect to Independent Gateways GSAT must use best efforts to obtain consent. The following verbiage in the agreement is very interesting as it is what follows as an applicable stipulation only to the recognition of Independent Gatesways "Yippy agrees that this Agreement shall not grant to Yippy any property or other rights in any of the Gateways or the Colocation Space. In the event, however that this Agreement is construed by a Globalstar Lessor to grant property rights to any of the Gateways, Globalstar agrees to use reasonable best efforts to obtain the consent of any such Globalstar Lessor to this Agreement, or upon request of Globalstar to immediately remove Yippy Boxes from the Gateway at Globalstar's cost. "
- 4 GAME CHANGER Let's break this down:

GSAT provides Grant of Access to 20% of Colocation Space of GSAT Gateways with respect to Independent Gateways GSAT must use best efforts to obtain consent.
[url]http://www.globalstar.com/en/ir/docs/GlobalStar_AR_2013.PDF
[/url][tag]Understanding Globalstars Ground Network[/tag]

Ground Network
Our satellites communicate with a network of 24 active gateways, each of which serves an area of approximately 700,000 to 1,000,000
square miles. The design of our orbital planes ensures that generally at least one satellite is visible from any point on the earth's surface
between 70° north latitude and 70° south latitude. A gateway must be within line-of-sight of a satellite and the satellite must be within line-ofsight
of the subscriber to provide services. We have positioned our gateways to cover most of the world's land and population. We own 12 of
these gateways and the rest are owned by IGOs. In addition, we have spare parts in storage, including antennas and gateway electronic
equipment, including two un-deployed stored gateways.

For recap, GSAT provides Grant of Access to 20% of Colocation Space of GSAT Gateways with respect to Independent Gateways GSAT must use best efforts to obtain consent.

The contract immediately gives Yippy 20% of all Colocation Gateways owned by GSAT and possibility of additional 20% Colocations Gateways owned by IOG. This means at this very moment Yippy has 10% allocation of GSAT ground network for TLPS with additional 10% allocation upside potential.

Think of this for a second, GSAT is allocating 20% total capacity infrastructure of all GSAT Colocation Gateways. At this percentage it would clearly appear GSAT's intention is to default bundle Yippy's platform into all services offered. Supporting this appearance would be the fact Globalstar will offer the Yippy Developed Equipment (YDE) offering to all current customers at the price identified by Yippy. The word "offering" at 1st appeared to mean as an option to their customers, but in context "offering" suggest that it would come as a standard offering with all GSAT services. Acquisition Positioning??

I could go on and on to connect the dots even more solidly
that would strengthen this position and end game intent. This seems like a good stopping point for the moment.

Watch How This Plays Out. Maybe as it unrolls I'll pick up with additional points.

Let's Have Fun. Keep A Tally as this plays out on the accuracy of the strategical assessment above.