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Globalstar Inc. (NYSE: GSAT) on the move since Apple chose GSAT as a partner for iPhone 14’s emergency messaging feature

Globalstar Inc. (NYSE: GSAT) is heading north, recently hitting a high of $2.98 per share as 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 dedicating $450 million of its advanced manufacturing fund to satellite infrastructure to support the feature, with GlobalStar receiving most of the funding. LEO satellites operate 36 times closer to the ground than traditional satellites and take less time to send and receive information, enabling faster broadband service even in remote areas.

Apple will pay for 95% of the approved capital costs for new satellites that will be required 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 its business strategy to enable it to generate robust cash flow with significant growth potential 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 be between US$185 million and US$230 million, which depends in part on the achievement by the Company of certain milestones and other targets in accordance with the Agreements on partnership. EBITDA margin is approximately 55%.

Globalstar Inc. (NYSE: GSAT) pioneered personal security with the introduction of its SPOT Satellite GPS Messenger in 2007. Today, using its low-Earth orbit (LEO) satellite constellation, Globalstar securely connects and protects assets, transmits key operational data, and saves lives—from anywhere—for consumers, industrial companies, and government agencies in more than 120 countries around the world. With a portfolio that includes SPOT GPS messengers, next-generation IoT products and modems, and cloud-based telematics solutions, Globalstar’s cost-effective satellite innovations provide users with transparency and intelligence to improve security and work efficiency.

In 2021, the Company acquired the remainder of its joint venture in South Korea and also took over the operation of its three locks in Australia, which were previously operated by an independent lock operator.

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

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

Globalstar satellites link to a network of gateways, each serving an area of ​​700,000 to 1,000,000 square miles. Each of our gateways has multiple antennas that communicate with the Company’s satellites and seamlessly transmit data between antenna beams and satellites as the satellites cross the gateways, thereby reflecting signals from user terminals to the Globalstar gateways.

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The specialized needs of Globalstar’s global customers span many industries, and as of January 1, 2022, the company had approximately 768,000 subscribers worldwide. The company’s primary revenue markets in the US and Canada are governments, public safety and disaster relief, oil and gas, leisure and personal telecommunications.

Globalstar also offers the GSP-1600 and GSP-1700 phones. Both phones use Qualcomm Incorporated’s patented CDMA technology, which the company says delivers superior voice quality over competing phones. The GSP-1700 is equipped with a convenient LCD color screen and a variety of accessories.

Since its launch in 2007, the SPOT product family has initiated approximately 8,200 rescues. SPOT provides affordable and reliable satellite communications and real-time GPS tracking to hundreds of thousands of users, completely independent of cell coverage. Globalstar currently sells SPOT Gen4TM, SPOT X® and SPOT Trace®. SPOT Gen4TM offers advanced tracking features and is also water resistant. The product allows users to send pre-defined messages to a specific pre-programmed email address, phone or data device, including requests for help and “SOS” messages in the event of an emergency. SPOT X® is a two-way SPOT device with a keypad that allows subscribers to send and receive SMS messages. 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 cars, motorcycles, boats, ATVs, snowmobiles and other valuable assets are where they should be by notifying owners via email or text message at any time when motion is detected using 100% satellite technology for messaging location-based and emergency alerts for on-network or off-network communications. The company maintains distribution relationships with a number of major 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 transfer service from an IoT device through the Globalstar system, which can be used to track and monitor assets. Our subscribers use our commercial IoT devices for a variety of applications: tracking assets such as freight containers and railcars; monitor utility meters; and for monitoring oil and gas assets. At the heart of a commercial IoT service is a demodulator and an RF interface called an application, which resides on the gateway and application server at our facilities. Gateways with an application provide coverage of 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 various 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 UK Department of Defense. , 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 dedicating $450 million of its advanced manufacturing fund to satellite infrastructure to support the feature, with GlobalStar receiving most 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 satellites 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. GSAT still tops the watch lists of many speculators. GSAT) has been heading north recently, peaking at $2.98 per share, as 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 dedicating $450 million of its advanced manufacturing fund to satellite infrastructure to support the feature, with GlobalStar receiving most of the funding. LEO satellites operate 36 times closer to the ground than traditional satellites and take less time to send and receive information, enabling faster broadband service even in remote areas. Apple will pay for 95% of the approved capital costs for new satellites that will be required 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 will be updating the GSAT as things unfold, so make sure you subscribe to Microcapdaily so you know what’s going on with the GSAT.

Disclosure: We are neither long nor short in the GSAT and we have not received compensation for this article.

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