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Globalstar's (GSAT) HIBLEO-4 Authorization Extended by FCC

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Globalstar (GSAT - Free Report) recently announced that the U.S. Federal Communications Commission (“FCC”) has granted the company an additional 15-year extension of its senior HIBLEO-4 authorization. This order not only extends the operational term of Globalstar's existing satellite and communications solutions but also permits the company to deploy up to 26 replacement satellites. 

The FCC’s extension allows Globalstar to continue operating within its licensed portion of the Big LEO Band. This ensures that the company will continue to provide a wide range of voice and data communication services to its global customer base, including “safety-of-life services.”

GSAT highlighted the significance of this extension in upholding its mission of providing critical mobile satellite connectivity worldwide. The new satellite deployment program is likely to enhance the performance and reach of Globalstar’s services, including its Direct-to-Device satellite connections. 

Globalstar offers satellite voice and data services to commercial and recreational users in more than 120 countries worldwide. Its products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. 

In addition to its satellite operations, Globalstar boasts a terrestrial spectrum technology known as Band 53. This spectrum, along with its 5G variant n53, is gaining momentum as the demand for private networks grows. Band 53 is well-suited for these private networks, offering a fully licensed and versatile channel that can be used by carriers, cable companies and system integrators.

Its XCOM RAN technology further augments its position in the terrestrial connectivity space. XCOM RAN is designed to offer potential capacity gains in dense wireless environments, making it an ideal solution for warehouse automation, mining, distribution centers, stadiums and campuses.

Moreover, its investment in next-generation IoT hardware and software products is set to facilitate asset tracking and monitoring. With smart data processing and cloud-based telematics solutions, Globalstar empowers organizations to manage their operations more efficiently, enhance safety and drive profitability.

In the last reported quarter, GSAT’s revenues jumped 10% year over year to $60.4 million, driven by higher service revenues amid a slowdown in subscriber equipment sales. The top line beat the Zacks Consensus Estimate by 5%. The company has updated the lower end of its full-year 2024 revenue guidance. It now expects net sales between $235 million and $250 million, raised from the prior view of $225-$250 million.

It currently carries a Zacks Rank #3 (Hold). GSAT’s shares have gained 24.3% against the industry’s decline of 31.6%.

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