Apple

Globalstar, Inc. (NYSE: GSAT) On the Move Since Apple Chose GSAT to Partner on iPhone 14’s Emergency Messaging Feature

Globalstar, Inc. (NYSE: GSAT ) has been heading north recently, hitting highs of $2.98 a share since Apple chose Globalstar Inc as its partner for a feature that will allow iPhone 14 users to send emergency messages from remote locations. Apple said it is committing $450 million from its Advanced Manufacturing Fund to satellite infrastructure to support the feature, with GlobalStar receiving the bulk of the funding. LEO satellites operate 36 times closer to the ground than traditional satellites and take less time to send and receive information, resulting in faster broadband service even in remote areas.

Apple will pay 95 percent of the approved capital costs for the new satellites that will be needed to support the service, but Globalstar said it will still need to raise additional debt to build and deploy the satellites. Globalstar brought in investment bank Goldman Sachs & Co to finance the deal. The service is free for two years with every iPhone 14 purchase and launches in the US and Canada from November. Globalstar expects that its business strategy will enable it to generate reliable cash flow with significant potential for growth and greater profitability. Including the partnership agreements and excluding terrestrial spectrum, the Company expects its total revenue for the year ended December 31, 2023 to range between $185 million and $230 million, depending in part on the Company’s achievement of certain performance and other goals under partnership agreements, generating an EBITDA margin of approximately 55%.

Globalstar, Inc. (NYSE: GSAT) pioneered personal safety by introducing its SPOT Satellite GPS Messenger in 2007. Today, using its constellation of Low Earth Orbit (LEO) satellites, Globalstar reliably connects and protects assets, transmits key operational data and saves lives – from anywhere – for consumers, industrial companies and government agencies in over 120 countries. With a portfolio that includes SPOT GPS messengers, next-generation IoT products and modems, and cloud-based telematics solutions, Globalstar’s cost-effective satellite-powered innovations give users the visibility and intelligence to improve safety and operational efficiency.

In 2021, the Company acquired the remaining ownership of its joint venture in South Korea and also took over the operations of its three gateways in Australia, which were previously operated by an independent gateway operator.

Globalstar’s constellation of Low Earth Orbit (“LEO”) satellites includes second-generation satellites and some first-generation satellites. The company also has one second-generation ground backup satellite that it plans to launch in the near future. Globalstar’s goal is to provide service levels and call or message success equal to or better than the company’s MSS competitors so that its products and services are attractive to potential customers.

In February 2022, Globalstar entered into a satellite supply agreement with Macdonald, Dettwiler and Associates Corporation, under which the Company will acquire 17 satellites that will complement its existing constellation and provide long-term continuity of its mobile satellite services for a purchase price of $327 million . The technical specifications and design of these new satellites are similar to the company’s current second-generation satellites. Rocket Lab USA, Inc. is a subcontractor of the Supplier’s satellite bus under the Public Procurement Agreement.

Globalstar satellites communicate with a network of gateways, each serving an area of ​​approximately 700,000 to 1,000,000 square miles. Each of our gateways has multiple antennas that communicate with the Company’s satellites and seamlessly relay communications between the antenna beams and the satellites as the satellites pass through the gateways, thereby reflecting signals from users’ terminals to Globalstar’s gateways.

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The specialized needs of Globalstar’s global customers span many industries, and as of January 1, 2022, the company has approximately 768,000 subscribers worldwide. The company’s largest revenue-generating markets in the United States and Canada are government, public safety and disaster relief, oil and gas, recreation and personal telecommunications.

Globalstar also offers the GSP-1600 and GSP-1700 phones. Both phones feature Qualcomm Incorporated’s proprietary CDMA technology, which the company believes provides superior voice quality compared to competitor phones. The GSP-1700 phone includes an easy-to-use color LCD screen and a variety of accessories.

The SPOT family of products has initiated approximately 8,200 rescue operations since its launch in 2007. SPOT provides affordable and reliable satellite connectivity and real-time GPS tracking to hundreds of thousands of users, completely independent of cellular coverage. Globalstar currently sells SPOT Gen4TM, SPOT X® and SPOT Trace®. The SPOT Gen4TM offers enhanced tracking features and is also waterproof. The product allows users to transmit pre-defined messages to a specific pre-programmed email address, phone or data device, including requests for help and “SOS” messages in case of an emergency. The SPOT X® is a two-way SPOT device with keyboard functionality that allows subscribers to send and receive SMS messages. The SPOT X® connects to a smartphone via Bluetooth® wireless technology via the SPOT X® app to send and receive satellite messages. SPOT Trace® is a cost-effective anti-theft and asset tracking device. SPOT Trace® ensures that cars, motorcycles, boats, ATVs, snowmobiles and other valuable assets are where they need to be by notifying owners by email or text any time movement is detected using 100% satellite technology to deliver of location-based messages and emergency notifications for on- or off-network communications. The Company has distribution relationships with a number of “Big Box” retailers and other similar distribution channels, including Amazon, Bass Pro Shops, Cabela’s, Camping World, Gander Outdoors, REI, Sportsman’s Warehouse, Academy and West Marine.

The commercial IoT service is currently a one-way data service from an IoT device through the Globalstar system, which can be used for asset tracking and monitoring. Our subscribers use our commercial IoT devices for multiple applications: to track assets such as freight containers and rail cars; for monitoring electricity meters; and to monitor oil and gas assets. At the heart of a commercial IoT service is a demodulator and RF interface called an appliqué, which resides on a gateway and application server in our facilities. Gateways equipped with applications provide coverage to vast areas of the globe. The small size of IoT devices makes them attractive for use in tracking asset shipments, monitoring unattended remote assets, trailer tracking, and mobile security. Current users include a variety of government agencies, including the Federal Emergency Management Agency (“FEMA”), the US Army, the US Air Force, the National Oceanic and Atmospheric Administration (“NOAA”), the US Forest Service, and the US Department of Defense. United Kingdom, as well as other organizations including BP, Shell and The Salvation Army.

On September 7, Apple selected Globalstar Inc as its partner for a feature that will allow iPhone 14 users to send emergency messages from remote locations. Apple said it is committing $450 million from its Advanced Manufacturing Fund to satellite infrastructure to support the feature, with GlobalStar receiving the bulk of the funding. Globalstar brought in investment bank Goldman Sachs & Co to finance the order. LEO satellites operate 36 times closer to the ground than traditional ones and therefore take less time to send and receive information, resulting in faster broadband service even in remote areas.

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It currently trades at a market valuation of $3.2 billion The GSAT continues to be at the top of many speculators’ watch lists. GSAT) has been moving north recently, hitting highs of $2.98 a share since Apple chose Globalstar Inc as its partner for a feature that will allow iPhone 14 users to send emergency messages from remote locations. Apple said it is committing $450 million from its Advanced Manufacturing Fund to satellite infrastructure to support the feature, with GlobalStar receiving the bulk of the funding. LEO satellites operate 36 times closer to the ground than traditional satellites and take less time to send and receive information, resulting in faster broadband service even in remote areas. Apple will pay 95 percent of the approved capital costs for the new satellites that will be needed to support the service, but Globalstar said it will still need to raise additional debt to build and deploy the satellites. Globalstar brought in investment bank Goldman Sachs & Co to finance the deal. The service is free for two years with every iPhone 14 purchase and launches in the US and Canada from November. We’ll be updating the GSAT as events unfold, so make sure you’re subscribed to Microcapdaily to know what’s happening with the GSAT.

Disclosure: We do not hold a long or short position in GSAT and have not been compensated for this article.