1st Gen Satellite Globalstar: You've Got To Know When To Hold 'Em...
Oct.30.17 | About: Globalstar, Inc. (GSAT)
Jay van Santen
Jay van Santen
Value, Growth, tech, medium-term horizon
(79 followers)
Summary
In 2004, Globalstar and its LEO satellite constellation were rescued from bankruptcy by Thermo Capital Partners, led by Jay Monroe, which remains the largest shareholder and majority debt holder.
The company targeted the journalist, explorer, and others in remote areas of the world. Corporations use the network for maintaining contact with remote workers, as well as tracking assets.
A 2nd generation satellite refresh finished in 2013 has not enticed sufficient new business for ongoing viability.
The December 2016 FCC approval of Orbcomm's 2.4MHz Satellite spectrum for terrestrial use has not brought forward any partners or suitors.
Subsequently, Chairman and CEO Jay Monroe declared a “quiet period” for the company to pursue M&A. “All options are on the table”.
This article is one of a series on the LEO satellite pioneers. Background and comparison as well as individual profiles are contained in the following companion articles:
2nd Gen Communication Disrupters Should Learn From The 1st: Orbcomm, Iridium And Globalstar
LEO Satellite Pioneer Orbcomm's IoT Gambit: Grow Now, Profit Later
Go Long, Young Man! Advice To Shorts On Iridium - Satellite Pioneer
(Courtesy Globalstar video capture via SpaceNews)
Qualcomm (QCOM) and Loral Corporation launched the Globalstar project in 1991, and formed a limited partnership in March 1994 with a coalition of aerospace and cell companies to manage the effort, subsequently receiving spectrum allocation domestically and later worldwide. This was one of the later launches of Low Earth Orbit (LEO) satellite constellations in the flurry of activity in the early 90s. Up until that time, expensive Geostationary Earth Orbit (GEO) satellites had been used for weather forecasting, earth observation, and communication. A lower orbit with smaller units promised a less costly infrastructure which could provide affordable worldwide voice communication. Obviously, with a lower orbit, LEOs have a smaller coverage on the earth, thus significantly more are required to cover the entire earth. “Constellation” describes the complete set of satellites which constitute a communications network.
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