Globalstar

Globalstar, a leading provider of satellite communication services, has selected MDA, a Canadian space technology company, to build 17 new satellites for its low Earth orbit (LEO) constellation⁵². The contract is valued at $327 million and is expected to extend the life of Globalstar's existing satellite network by 15 years⁵². MDA has subcontracted Rocket Lab, a New Zealand-based launch and space systems company, to design and manufacture the spacecraft buses for the new satellites²³. The subcontract is worth $143 million and is the largest spacecraft bus order placed with Rocket Lab to date³. Globalstar has paid $20 million in forbearance agreement to MDA and Rocket Lab, while exploring financing options for the remaining payment obligations⁴.

According to the web sources, Globalstar has 48 satellites in orbit, with an additional four satellites as spares¹². The satellites are placed in eight orbital planes of six satellites each, inclined at 52° to provide service on Earth from 70° North latitude to 70° South latitude². The satellites operate at an altitude of 1,414 km and have a trapezoidal body, two solar arrays and a magnetometer²³. The satellites are part of the second-generation constellation that was launched between 2010 and 2013⁵. Globalstar plans to replace these satellites with a third-generation constellation that will be built by MDA and Rocket Lab⁵.

The advantages of the third-generation constellation are not very clear from the web sources, but I can tell you some of the features that Globalstar has announced. According to Globalstar, the new satellites will have a *longer lifespan* of 15 years, compared to the current 12 years⁵. They will also have *enhanced performance* and *reduced latency* for voice and data services, as well as *increased capacity* for Commercial IoT and SPOT Business tracking and messaging products¹⁴. The new satellites will also be *compatible* with the existing second-generation satellites and ground infrastructure, which will allow for a *seamless transition* and *minimal disruption* for customers⁵. Globalstar expects the new satellites to be launched in *2025* and to provide service until *2040*⁵.

Globalstar offers a range of satellite communication solutions that keep you connected in areas without cellular coverage⁴. Some of the services offered by Globalstar are:

- **Mobile and fixed satellite telephones**: These are devices that allow you to make and receive voice calls and text messages using the Globalstar satellite network. They are designed for outdoor use and have features such as GPS, SOS button, Bluetooth, and Wi-Fi³⁴.

- **Simplex and duplex satellite data modems**: These are devices that allow you to send and receive data using the Globalstar satellite network. Simplex modems are one-way devices that transmit data from a remote location to a central server, while duplex modems are two-way devices that allow bidirectional data communication. They are used for applications such as asset tracking, remote monitoring, and telemetry³⁴.

- **Satellite airtime packages**: These are plans that allow you to access the Globalstar satellite network for voice and data services. They vary in terms of minutes, data, and coverage. Some plans also include unlimited voice and data within the home zone⁴⁵.

- **Satellite emergency messaging**: This is a feature that allows you to send emergency messages from remote locations using the Globalstar satellite network. You can use this feature to check in via talk, text, or email, relay important information, or trigger search and rescue services in the event of an emergency. This feature is available on some Globalstar devices, such as SPOT and Sat-Fi, and also on the iPhone 14 series⁴⁶.

I cannot give you a definitive answer on whether Globalstar is a good investment or not, as that depends on many factors and your own risk appetite. However, I can summarize some of the information I found on the web about Globalstar's financial performance, prospects, and challenges.

- Globalstar is a provider of mobile satellite voice and data services, with a market capitalization of about $2.5 billion as of February 2023¹.

- Globalstar has recently announced a partnership with Apple to provide satellite emergency messaging on the iPhone 14 series, which could boost its revenue and customer base²⁶.

- Globalstar has also secured a contract with MDA and Rocket Lab to build and launch 17 new satellites for its third-generation constellation, which could extend its service life and improve its performance⁵².

- Globalstar has reported a net loss of $25.6 million for the third quarter of 2022, compared to a net loss of $28.6 million for the same period in 2021. Its revenue increased by 6% to $32.8 million, driven by growth in its Commercial IoT and SPOT segments¹.

- Globalstar faces competition from other satellite companies, such as Inmarsat, Iridium, and SpaceX, which offer similar or superior services at lower prices or higher speeds³⁶.

- Globalstar has a high debt burden of $1.1 billion as of September 2022, which limits its ability to invest in new technologies and expand its market share¹⁴.

- Globalstar has received mixed opinions from analysts and investors, with some seeing it as a potential growth stock and others as a risky bet. Its stock price has fluctuated between $0.29 and $2.98 in the past year, reflecting its volatility and uncertainty²³⁴⁵⁶.

Globalstar is one of the several satellite companies that offer mobile satellite voice and data services, along with Inmarsat, Iridium, SpaceX, and others. Here are some of the ways that Globalstar compares to other satellite companies:

- **Coverage**: Globalstar has a low Earth orbit (LEO) satellite constellation that covers most of the world, except for some polar and oceanic regions. However, its coverage is less reliable and consistent than other satellite networks, such as Inmarsat and Iridium, which have geostationary orbit (GEO) and LEO satellites, respectively, that provide global and continuous coverage. SpaceX is also building a LEO satellite constellation called Starlink, which aims to provide high-speed broadband internet access worldwide¹²³.

- **Performance**: Globalstar offers voice and data services with a speed of up to 9.6 kbps and a latency of up to 1 second. This is comparable to Iridium, which offers voice and data services with a speed of up to 2.4 kbps and a latency of up to 1.5 seconds. However, both Globalstar and Iridium are slower and more laggy than Inmarsat, which offers voice and data services with a speed of up to 492 kbps and a latency of up to 0.6 seconds. SpaceX's Starlink is expected to offer voice and data services with a speed of up to 100 Mbps and a latency of up to 0.03 seconds, which would surpass all other satellite networks¹²³.

- **Price**: Globalstar has the lowest price among the satellite companies, with plans starting from $24.99 per month for unlimited voice and data within the home zone. Iridium has plans starting from $49.95 per month for 10 minutes of voice and 10 text messages. Inmarsat has plans starting from $59.95 per month for 10 minutes of voice and 10 text messages. SpaceX's Starlink has plans starting from $99 per month for unlimited voice and data worldwide¹²³.

- **Partnerships**: Globalstar has recently partnered with Apple to provide satellite emergency messaging on the iPhone 14 series, which could give it an edge over other satellite companies in terms of customer reach and brand recognition. However, Globalstar is also open to working with other smartphone makers and service providers, which could dilute its competitive advantage.

Iridium has partnered with Amazon Web Services to provide cloud-based satellite services, which could enhance its capabilities and offerings.

Inmarsat has partnered with Microsoft Azure to provide hybrid cloud and satellite solutions, which could increase its market share and innovation.

SpaceX's Starlink has partnered with Google Cloud to provide ground stations and data centers, which could improve its performance and reliability²³⁴⁵.

As you can see, Globalstar has some strengths and weaknesses compared to other satellite companies, and it faces a dynamic and competitive market. You may want to consider these factors when evaluating Globalstar as a potential investment or service provider.

Source: Conversation with Bing, 14.2.2023(1) The Best Satellite Phone: Globalstar vs Inmarsat vs Iridium. https://www.expeditioncommunications.com/blog/the-best-satellite-phone-globalstar-vs-inmarsat-vs-iridium/ Accessed 14.2.2023.

(2) How Apple’s iPhone 14 satellite link puts it up against SpaceX and others. https://www.theverge.com/2022/9/8/23342908/apple-satellite-sos-globalstar-business-ast-lynk-spacex Accessed 14.2.2023.

(3) Globalstar - Wikipedia. https://en.wikipedia.org/wiki/Globalstar Accessed 14.2.2023.

(4) M2M Satellite Communication Market Insights-Industry changing aspects, New Technologies and Forecast to 2029. https://www.marketwatch.com/press-release/m2m-satellite-communication-market-insights-industry-changing-aspects-new-technologies-and-forecast-to-2029-2023-02-14 Accessed 14.2.2023.

(5) Satellite Machine-To-Machine (M2M) Communications Market 2023 Will Touch New Level in Upcoming Year. https://www.marketwatch.com/press-release/satellite-machine-to-machine-m2m-communications-market-2023-will-touch-new-level-in-upcoming-year-2023-02-10 Accessed 14.2.2023.

Please note that this is not a financial advice and you should do your own research before making any investment decisions.

Source: Conversation with Bing, 14.2.2023(1) Investor Relations - Globalstar, Inc.. https://investors.globalstar.com/ Accessed 14.2.2023.

(2) Globalstar (GSAT) Stock Forecast: Is It a Good Buy Now? - Market Realist. https://marketrealist.com/p/is-gsat-a-good-stock-to-buy/ Accessed 14.2.2023.

(3) Mobile Satellite Services Market Demand and Competitive Analysis by Key Players to 2028|Ericsson,Globalstar,Inmarsat Holdings. https://www.marketwatch.com/press-release/mobile-satellite-services-market-demand-and-competitive-analysis-by-key-players-to-2028ericssonglobalstarinmarsat-holdings-2023-02-02 Accessed 14.2.2023.

(4) It’s Worth A Gamble To Have A Position In Globalstar Inc. (AMEX: GSAT) At $1.41.. https://marketingsentinel.com/2023/02/02/its-worth-a-gamble-to-have-a-position-in-globalstar-inc-amex-gsat-at-1-41/ Accessed 14.2.2023.

(5) Is GSAT A Good Stock To Buy Now? - Yahoo!. https://finance.yahoo.com/news/gsat-good-stock-buy-now-234857608.html Accessed 14.2.2023.

(6) Volatility Hits 5.45% At Globalstar Inc. (GSAT) – Here’s What A Good Investor Should Do. https://stocksregister.com/2023/02/03/volatility-hits-5-45-at-globalstar-inc-gsat-heres-what-a-good-investor-should-do/ Accessed 14.2.2023.

Source: Conversation with Bing, 14.2.2023(1) Satellite Solutions & Services | Globalstar US. https://www.globalstar.com/en-us/ Accessed 14.2.2023.

(2) Globalstar - Wikipedia. https://en.wikipedia.org/wiki/Globalstar Accessed 14.2.2023.

(3) Service Plans | Globalstar US. https://www.globalstar.com/en-us/service-plans Accessed 14.2.2023.

(4) Apple picks Globalstar for emergency satellite service on iPhone 14 .... https://www.reuters.com/technology/apple-picks-globalstar-satellite-service-iphone-14-series-2022-09-07/ Accessed 14.2.2023.

(5) The Globalstar Big LEO Satellite System for Near-Global Satellite .... https://www.microwavejournal.com/articles/38970-the-globalstar-big-leo-satellite-system-for-near-global-satellite-communications Accessed 14.2.2023.

(6) Globalstar, Inmarsat and Irdium Satellite Phone Service Plans. https://globalcomsatphone.com/services/ Accessed 14.2.2023.

Source: Conversation with Bing, 14.2.2023(1) Our Technology | Globalstar AP. https://www.globalstar.com/en-ap/about/our-technology Accessed 14.2.2023.

(2) Our Technology | Globalstar US. https://www.globalstar.com/en-us/about/our-technology Accessed 14.2.2023.

(3) Our Technology | Globalstar US. https://www.globalstar.com/en-us/about/our-technology Accessed 14.2.2023.

(4) Globalstar - Wikipedia. https://en.wikipedia.org/wiki/Globalstar Accessed 14.2.2023.

(5) Globalstar Says $1.2 Billion Will Fund Next Constellation. https://spacenews.com/globalstar-says-12-billion-will-fund-next-constellation/ Accessed 14.2.2023.

(6) Globalstar Communication Satellite - Aerospace Technology. https://www.aerospace-technology.com/projects/globalstar/ Accessed 14.2.2023.

(7) Satellite M2M and IoT Network Market 2023 (Newest 125 Pages Report) is Booming Worldwide 2029. https://www.marketwatch.com/press-release/satellite-m2m-and-iot-network-market-2023-newest-125-pages-report-is-booming-worldwide-2029-2023-02-06 Accessed 14.2.2023.

Source: Conversation with Bing, 14.2.2023(1) Globalstar Communication Satellite - Aerospace Technology. https://www.aerospace-technology.com/projects/globalstar/#:~:text=The%20Globalstar%20constellation%20consists%20of%2048%20LEO%20satellites%2C,means%20fast%20and%20easy%20system%20maintenance%20and%20upgrades. Accessed 14.2.2023.

(2) GLOBALSTAR SATELLITES - n2yo.com. https://www.n2yo.com/satellites/?c=17 Accessed 14.2.2023.

(3) Globalstar Communication Satellite - Aerospace Technology. https://www.aerospace-technology.com/projects/globalstar/ Accessed 14.2.2023.

(4) SpaceX launches Globalstar satellite on mysterious Falcon 9 mission. https://www.nasaspaceflight.com/2022/06/spacex-globalstar-falcon-9/ Accessed 14.2.2023.

(5) The Globalstar Big LEO Satellite System for Near-Global Satellite .... https://www.microwavejournal.com/articles/38970-the-globalstar-big-leo-satellite-system-for-near-global-satellite-communications Accessed 14.2.2023.

Source: Conversation with Bing, 14.2.2023(1) Globalstar selects MDA and Rocket Lab for new satellites. https://spacenews.com/globalstar-selects-mda-and-rocket-lab-for-new-satellites/ Accessed 14.2.2023.

(2) MDA Wins $327M Satellite Order from Globalstar, Issues Bus Subcontract .... https://www.satellitetoday.com/manufacture/2022/02/24/mda-wins-327m-satellite-order-from-globalstar-issues-bus-subcontract-to-rocket-lab/ Accessed 14.2.2023.

(3) Rocket Lab Selected by MDA to Design and Build Spacecraft for Globalstar. https://www.rocketlabusa.com/updates/rocket-lab-selected-by-mda-to-design-and-build-spacecraft-for-globalstar/ Accessed 14.2.2023.

(4) Investing in Space: Starship in the D.C. spotlight. https://www.cnbc.com/2023/02/09/investing-in-space-starship-in-the-dc-spotlight.html Accessed 14.2.2023.

(5) Rocket Lab Selected by MDA to Design and Build Spacecraft for Globalstar. https://bing.com/search?q=agreement+MDA+Rocket+Lab+Globalstar Accessed 14.2.2023.