Globalstar

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Globalstar, Inc.

Type Public (NASDAQ: GSAT)

Founded Predecessor company Globalstar LP founded March 24,

1991; restructured as Globalstar, LLC in 2003.

Current company incorporated into Globalstar, Inc. in

Spring of 2006.

Headquarters Milpitas, California, U.S.A.

Products Satellite phones, satellite data modems, SPOT Satellite

Messenger(TM)

Services Satellite communication, Asset tracking

Parent Thermo Capital Partners LLC

Subsidiaries SPOT LLC

Website http://globalstar.com

This article may require cleanup to meet Wikipedia'squality

standards. Please improve this article if you can. (April 2008)

Globalstar is a low Earth orbit (LEO) satellite constellation for satellite phone and low-speed data
communications, somewhat similar to the Iridium satellite constellation and Orbcomm satellite
systems.

Contents
[hide]

• 1 History

• 2 Products and services

o 2.1 Handsets

• 3 System architecture
 • 4 Satellites

o 4.1 Recent satellite problems

 4.1.1 Globalstar's interim solution

o 4.2 Globalstar's second-generation satellites

• 5 Business operations

o 5.1 Corporate structure and financing

o 5.2 SPOT LLC

o 5.3 Employees

• 6 See also

• 7 References

• 8 Bibliography

• 9 External links

[edit]History

The Globalstar project was launched in 1991 as a joint venture of Loral Corporation and Qualcomm.
On March 24, 1994, the two sponsors announced formation of Globalstar LP, a limited
partnership established in the U.S., with financial participation from eight other companies,
including Alcatel, AirTouch, Deutsche Aerospace, Hyundai and Vodafone. At that time, the company
predicted the system would launch in 1998, based on an investment of $1.8 billion.

Globalstar received its U.S. spectrum allocation from the FCC in January 1995, and continued to
negotiate with various other sovereign nations for rights to use the same radio frequencies in their
countries.

The first satellites were launched in February 1998, but system deployment was delayed due to a
launch failure in September 1998 that resulted in the loss of 12 satellites in a launch by the Russian
Space Agency. In February 2000, it launched the last of 52 satellites — 48 satellites and four spares
(reduced from the original plan of eight spares).

The first call on the original Globalstar system was placed on November 1, 1998, from Qualcomm
chairman Irwin Jacobs in San Diego to Loral Space & Communications CEO and chairman Bernard
Schwartz in New York.

In October 1999, the system began "friendly user" trials with 44 of 48 planned satellites. In December
1999, the system began limited commercial service for 200 users with the full 48 satellites (no spares
in orbit). In February 2000, it began full commercial service with its 48 satellites and 4 spares in North
America, Europe and Brazil. Initial prices were $1.79/minute.
On February 15, 2002, the predecessor company Globalstar (old Globalstar) and three of its
subsidiaries filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code.

In 2004, restructuring of the old Globalstar was completed. The first stage of the restructuring was
completed on December 5, 2003, when Thermo Capital Partners LLC was deemed to obtain
operational control of the business, as well as certain ownership rights and risks. Thermo Capital
Partners, became the principal owner.

Globalstar LLC was formed as a Delaware limited liability company in November 2003, and was
converted into Globalstar, Inc., on March 17, 2006.

In 2007 Globalstar launched eight additional first-generation spare satellites into space.

[edit]Products and services

With over 315,000 subscribers (as of June 2008), Globalstar is the world’s largest provider of mobile
satellite voice and data services. Globalstar offers these services to commercial and recreational users
in more than 120 countries around the world.

The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite
data modems and satellite airtime packages.

In late 2007 Globalstar subsidiary SPOT LLC launched a handheld satellite messaging and tracking
personal safety device known as the SPOT Satellite Messenger.

Many land based and maritime industries make use of the various Globalstar products and services
from remote areas beyond the reach of cellular and landline telephone service.

Global customer segments include: oil and gas, government, mining, forestry, commercial fishing,
utilities, military, transportation, heavy construction, emergency preparedness, and business continuity
as well as individual recreational users.

Globalstar data solutions are used for a variety of asset and personal tracking, data monitoring and
"Supervisory Control and Data Acquisition" or SCADA applications.
A Qualcomm Satellite Phone

[edit]Handsets

 Ericsson R290

 Globalstar GSP-1600

 Globalstar GSP-1700 (current)

 Telit SAT550

 Telit SAT600

[edit]System architecture

 Globalstar satellites are simple "bent pipe" repeaters.[1] A network of ground gateway stations
provides connectivity from the 40 satellites to the public switched telephone network and Internet;
users are assignedtelephone numbers on the North American Numbering Plan in North America
or the appropriate telephone numbering plan for the country that the overseas gateway is located
in, except for Brazil, where the official Globalstar country code (+8818) is used.

Due to the lack of inter-satellite linking, a satellite must have a gateway station in view to provide
service to any users it may see. The use of gateway ground stations provides customers with localized
regional phone numbers for their satellite handsets. But if there are no gateway stations to cover
certain remote areas (such as areas of the South Pacific and the polar regions), service cannot be
provided in these remote areas, even if the satellites may fly over them.

The Globalstar system uses the Qualcomm CDMA air interface; however,
the Ericsson and Telit phones accept standard GSM SIM cards, while the Qualcomm GSP-1600/1700
phones do not have a SIM card interface, but use CDMA/IS-41 based authentication. Therefore the
Globalstar gateways need to support both the CDMA/IS-41 and the GSM standards, which not all
gateways do. This results in the lack of coverage for GSM authentication based phones in the Eastern
Asian and Caribbean region, as stated on the coverage map: [1]

Most Globalstar providers have roaming agreements with local cellular operators, enabling the use of
a cellular SIM card with a Globalstar handset and vice versa.

[edit]Satellites

Globalstar orbits have an inclination of 52 degrees. Therefore, Globalstar does not cover polar areas,
due to the lower orbital inclination.

Globalstar orbits have an orbital height of approximately 1400 km and latency is still relatively low
(approximately 60ms). It also does not cover sub-Saharan Africa, nor much of Asia, particularly China,
due to censorship (see coverage map).

A Globalstar satellite has two body-mounted, Earth-facing arrays. First-generation Globalstars weigh
approximately 550 kg, However, the second-generation Globalstar design will gain significant mass.

In 2005, some of the satellites began to reach the limit of their operational lifetime of 7.5 years. In
December 2005, Globalstar began to move some of its satellites into a graveyard orbit above LEO.[2]

[edit]Recent satellite problems

According to documents filed with the SEC on January 30, 2007, Globalstar's previously identified
problems with its S-band amplifiers used on its satellites for two-way communications are occurring at
a rate faster than expected, possibly eventually leading to reduced levels of two-way voice and duplex
data service in 2008. The company's simplex data services used to support the asset tracking
products as well as the SPOT Satellite Messenger are not affected by the S-band satellite issue
mentioned above. Globalstar also launched eight ground spare satellites in 2007 to help reduce the
impact of the issue.

In the filing, Globalstar made the following statements:

"Based on data recently collected from satellite operations, the Company has concluded that the
degradation of the amplifiers is now occurring at a rate that is faster than previously experienced and
faster than the Company had previously anticipated."

"Based on its most recent analysis, the Company now believes that, if the degradation of the S-band
antenna amplifiers continues at the current rate or further accelerates, and if the Company is
unsuccessful in developing additional technical solutions, the quality of two-way communications
services will decline, and by some time in 2008 substantially all of the Company’s currently in-orbit
satellites will cease to be able to support two-way communications services." [2]
Industry analysts speculate the problem is caused by radiation exposure the satellites receive when
they pass through the South Atlantic Anomaly in their 876 mile (1414 km) altitude orbits.[3]

"The S-band antenna amplifier degradation does not affect adversely the Company’s one-way
“Simplex” data transmission services, which utilize only the L-band uplink from a subscriber’s
“Simplex” terminal to the satellites."[4]

"The Company is working on plans, including new products and services and pricing programs, and
exploring the feasibility of accelerating procurement and launch of its second-generation satellite
constellation, to attempt to reduce the effects of this problem upon its customers and operations. The
Company will be able to forecast the duration of service coverage at any particular location in its
service area and intends to make this information available without charge to its service providers,
including its wholly owned operating subsidiaries, so that they may work with their subscribers to
reduce the impact of the degradation in service quality in their respective service areas. The Company
is also reviewing its business plan in light of these developments."[4]

"The Company’s liquidity remains strong. At December 31, 2006, in addition to its credit agreement,
the Company had unrestricted cash on hand and undrawn amounts under the Thermo Funding
Company irrevocable standby stock purchase agreement of approximately $195 million."[4]

[edit]Globalstar's interim solution

In 2007 Globalstar launched eight spare satellites for its existing constellation with a view to reducing
the gaps in its two-way voice and data services pending commercial availability of its second-
generation satellite constellation, scheduled for initial launch in the second half of 2009. Globalstar will
continue to operate its existing satellite constellation to provide and support services until the second-
generation Globalstar satellites are available for service.

Until the new second-generation Globalstar satellite constellation is operational, Globalstar is offering
its Optimum Satellite Availability T-tool (OSAT) on its Internet site, which subscribers may use to
predict when one or more unaffected satellites will be overhead at any specific geographic location.

Most current users in summer 2007 report difficulty using the phones, with very short communication
windows of one to two minutes and frequently dropped calls.[citation needed] In addition, an offshore fishing
magazine (Big Game Fishing Journal) wrote an editorial in their July 2007 issue on the poor service of
Globalstar.[5]

[edit]Globalstar's second-generation satellites

In December 2006, Globalstar announced that Alcatel Alenia Space, now Thales Alenia Space in
its Cannes headquarters, has been awarded a €661 million contract for the second-generation 48
satellite constellation.[6]
The satellites are being designed with a life expectancy of 15 years, significantly longer than the
design life of Globalstar’s first-generation constellation.

In addition, Globalstar announced on April 3, 2007 that it has signed a €9 million agreement with
Thales Alenia Space to upgrade the Globalstar satellite constellation, including necessary hardware
and software upgrades to Globalstar’s satellite control network facilities.[7]

In August 2008 Thales Alenia Space began production assembly, integration and testing of the
second-generation flight model satellites, in itsRome factory, for launch as early as Q3 2009.[8].

In July 2009, Globalstar, Inc. announced that it has received complete financing for its second-
generation satellite constellation and signed an amendment to the initial contract, specifying in
particular the adjusted conditions for production and the new satellite delivery timetable, enabling
launches to start in 2010[9].

The validation tests of the satellite subsystems and thermal vacuum tests have been successfully
completed and a 90-day launch time frame for the first six second-generation satellites will begin on
July 5, 2010. The satellites will be launched from the Baikonur Cosmodrome in Kazakhstan using the
Soyuz launch vehicle. Telemetry Control Unit upgrades for the gateways located in Argentina,
Australia, Botswana, France, Korea and the United States have already commenced in January 2010.

These second-generation satellites are expected to provide Globalstar customers with satellite voice
and data services until at least 2025.

[edit]Business operations
[edit]Corporate structure and financing
Predecessor Company - Globalstar LP. In February 1995, Globalstar Telecommunications Ltd. raised
$200 million from its initial public offeringin the NASDAQ market. The IPO price of $20 per share was
equivalent to $5 per share after two stock splits. The stock price peaked at (post split) $50 per share in
January 2000, but institutional investors began predicting bankruptcy as early as June 2000. The stock
price eventually fell below $1 per share, and the stock was delisted by NASDAQ in June 2001.

After the IPO, the publicly traded Globalstar Telecommunications (NASDAQ symbol GSTRF) owned
part of system operator Globalstar LP. From that point on, the primary financing for Globalstar LP was
vendor financing from its suppliers (including Loral and Qualcomm), supplemented by junk bonds.

After a total debt and equity investment of $4.3 billion, on February 15, 2002 Globalstar
Telecommunications filed for Chapter 11 bankruptcy protection, listing assets of $570 million and
liabilities of $3.3 billion. The assets were later bought for $43 million by Thermo Capital Partners LLC.
Globalstar LLC and Globalstar, Inc. When the new Globalstar emerged from bankruptcy in April 2004,
it was owned by Thermo Capital Partners (81.25%) and the original creditors of Globalstar L.P.
(18.75%). Globalstar LLC was incorporated in April 2006 to become Globalstar, Inc.

Globalstar, Inc. completed an IPO in November 2006. The stock currently trades on the NASDAQ
Global Select Market under the symbol GSAT.

[edit]SPOT LLC
In August 2007, Globalstar announced the introduction of the SPOT Satellite Messenger product, to be
marketed through its latest subsidiary SPOT, Inc., later named SPOT LLC. The SPOT Messenger is
manufactured by Globalstar partner Axonn LLC and combines the company's simplex data technology
with a Nemerix GPS chipset. SPOT is intended to leverage Globalstar's still adequate L-Band uplink,
which is used by simplex modems. The product was launched early November 2007.

[edit]Employees

Predecessor Company. The first five employees of Globalstar were transferred from the founding
companies in 1991. Although few figures were publicly disclosed, the company apparently reached a
peak of about 350 employees until layoffs in March 2001. However, this figure was misleading, as
most of the development, operations and sales employees were employed by the company’s strategic
partners.

Loral's chairman Bernard Schwartz served as Globalstar’s chairman and CEO until May 2001.

The company then appointed satellite telecommunications veteran Olof Lundberg to lead a turnaround
at the company to serve as chairman and CEO. After beginning his career with Swedish Telecom,
Lundberg had been founding Director General (later CEO) of Inmarsat from 1979 to 1995. He served
as founding CEO and later CEO and Chairman ICO Global Communications from 1995 to 1999.

Lundberg resigned from the company (then in bankruptcy) as of June 30, 2003.

[edit]See also

 Broadband Global Area Network

 ICO Satellite Management

 Iridium Satellite LLC

 O3b

 SkyWave Mobile Communications

 Teledesic

 TerreStar
  Thuraya

 Thales Alenia Space

 Orbcomm

[edit]References

1. ^ "New satellites to revolutionise communications". BBC News. Retrieved May 3, 2010.

2. ^ ODQN 10-1.indd

3. ^ "Space Intelligence News" (PDF). Ascend. March 2007.

4. ^ a b c http://www.sec.gov/Archives/edgar/data/1366868/000110465907007275/a07-

3495_18k.htm

5. ^ Big game fishing journal

6. ^ Spaceflightnow

7. ^ Globalstar press release

8. ^ "Globalstar begins production assembly and testing of new second-generation

satellites". Globalstar. August 27, 2008.

9. ^ "Thales Alenia Space welcomes Globalstar funding news ensuring second-generation

constellation production". Thales Alenis Space. July 06 2009.

[edit]Bibliography

 (French)(English) Guy Lebègue, (trad. Robert J. Amral), "Globalstar Mobile Telephony:

Planetwide within three Years", in Revue aerospatiale, No. 115, February 1995.