Globalstar, Inc. · NASDAQ:GSAT
Globalstar — Investor Presentation (June 2013)
25 slides from Globalstar's investor presentation, June 2013
Slide 1: Globalstar June 2013
Globalstar JUNE 2013
Slide 2: Summary
SUMMARY 1. GLOBALSTAR NETWORK / PRODUCTS UPDATE: Fully launched Second-Gen Constellation costing over $1 Billion, utilizing approximately 25 MHz of globally harmonized spectrum; Providing critical Mobile Satellite Services to over 550,000 government, public safety, enterprise and retail customer
Slide 3: Globalstar Network / Products Update
1 GLOBALSTAR NETWORK / PRODUCTS UPDATE 2
Slide 4: Successful Launch Campaign
GLOBALSTAR’S SUCCESSFUL LAUNCH CAMPAIGN Globalstar is the first MSS provider to successfully launch a second-generation constellation of LEO satellites, years ahead of its competition. Launch 1 – Oct ‘10 Launch 2 – July ‘11 Launch 3 – Dec ‘11 Launch 4 – Feb ‘13 Launch 4 was successful; Launch Sa
Slide 5: Target Market
GLOBALSTAR’S TARGET MARKET Provide a Low Cost Alternative Reach Places or People Connect People Who Work or Provide Needed Connectivity to International (High Outside Cellular Coverage Play Outside Cellular Coverage When Cellular Service Fails Cost) Roaming Connectivity to nearly one Over a bill
Slide 6: Representative Products: Commercial and Consumer Focus
REPRESENTATIVE PRODUCTS: COMMERCIAL AND CONSUMER FOCUS Commercial Focus Consumer Focus Mobile Satellite Phone Data Modem Consumer Asset Tracker SPOT Gen3 STX3 Fixed Satellite Phone SPOT Connect SPOT Global Phone Integrated with Smartphone New Asset Tracking device shown in relative size next to a qu
Slide 7: Historical Subscribers by Product
HISTORICAL SUBSCRIBERS BY PRODUCT 600 Total Ending Subscriber by Segment in Thousands 7 41 500 8 43 8 188 400 52 8 141 65 8 131 300 2 74 115 88 87 103 200 241 203 152 78 77 53 104 52 2 67 20 100 5 123 115 98 108 99 96 92 84 70 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 Duplex SPOT Simplex IGO /
Slide 8: The Problem — Spectrum Exhaustion
2 THE PROBLEM — SPECTRUM EXHAUSTION 7
Slide 9: The Need for More Spectrum
THE NEED FOR MORE SPECTRUM President Obama “The FCC is strongly encouraged … to expedite the repurposing of spectrum and otherwise enable innovative and flexible commercial uses of spectrum, including broadband, to be deployed as rapidly as possible by … identifying spectrum allocated for nonfederal
Slide 10: "Wi-Fi Traffic Jam" — 2.4 GHz
“WI-FI TRAFFIC JAM” — 2.4 GHZ UNLICENSED SPECTRUM EXHAUSTED Chairwoman Clyburn: “The Nation’s demand for unlicensed services has increased so dramatically that we need more spectrum to support these services. The 2.4 GHz band, while critical to the success of Wi-Fi and other unlicensed technologies,
Slide 11: "Wi-Fi Traffic Jam" Will Become Worse and Consumer Satisfaction Will Deteriorate
“WI-FI TRAFFIC JAM” WILL BECOME WORSE AND CONSUMER SATISFACTION WILL DETERIORATE There will be close to 7 billion mobile subscribers in the world this year – the equivalent of almost one device for every person on the planet. June 2012. Cisco is seeing a “perfect storm” in both Wi-Fi availability an
Slide 12: Currently Considering Solutions That Will Take Years to Implement and Are Poor Substitutes
CURRENTLY CONSIDERING SOLUTIONS THAT WILL TAKE YEARS TO IMPLEMENT AND ARE POOR SUBSTITUTES In considering how best to solve the Traffic Jam, Globalstar believes that the Commission should take an “ALL-OF-THE-ABOVE” approach; But existing FCC proceedings meant to address the Wi-Fi Traffic Jam wil
Slide 13: Globalstar's Petition — An Immediate Solution
3 GLOBALSTAR’S PETITION — AN IMMEDIATE SOLUTION 12
Slide 14: Wi-Fi Spectrum
WI-FI SPECTRUM Existing W-Fi Channels are Saturated with HIGH USAGE TLPS (CHANNEL 14) IS CLEAR! CHANNEL 14 1 CHANNELS 1,6, & 11 i = g 13 GlobalStar+
Slide 15: MSS Spectrum Is a Greenfield Opportunity
GLOBALSTAR’S MSS SPECTRUM IS A GREENFIELD OPPORTUNITY High channel crowding in existing public Wi-Fi channels (2401-2473), shown below in red and green, is now typical in many parts of the United States and acts as a fundamental limiting factor for both throughput and service quality. Globalstar
Slide 16: Terrestrial Low Power Service (TLPS) & AWS-5
TERRESTRIAL LOW POWER SERVICE (“TLPS”) & AWS-5 The ISM 2.4 GHz WiFi band is the world’s best model for globally harmonized spectrum, however, the U.S. is primarily limited to 11 channels Due to the extreme prevalence of unlicensed Wi-Fi activity, the current use of Channels 1, 6 and 11 is highly
Slide 17: Initial Test Results Confirm Superiority of TLPS
INITIAL TEST RESULTS CONFIRM SUPERIORITY OF TLPS Globalstar and Jarvinian recently concluded initial tests which confirmed that TLPS surpasses public Wi-Fi by 5x the effective distance and 4x the effective capacity, with no impact on public Wi-Fi operations in adjacent channels. PUBLIC WI-FI TLPS CO
Slide 18: TLPS Will Help Meet the Goals of ConnectED
GLOBALSTAR’S TLPS WILL HELP MEET THE GOALS OF CONNECT-ED “In a country where we expect free Wi-Fi with our coffee, why shouldn’t we have it in our schools?” --- President Obama “[M]ost schools have about as much Internet bandwidth as your house. (Actually, probably less than many of your homes….) “L
Slide 19: TLPS Will Provide Critical Connectivity in Post-Disaster Situations
GLOBALSTAR’S TLPS WILL PROVIDE CRITICAL CONNECTIVITY IN POST-DISASTER SITUATIONS Terrestrial wireless networks are often rendered inoperable or quickly reach capacity during and after natural or man-made disasters. Wi-Fi is becoming increasingly important in providing critical communications in post
Slide 20: TLPS Will Benefit the Provision of Health Care
GLOBALSTAR’S TLPS WILL BENEFIT THE PROVISION OF HEALTH CARE “Among the types of services that stand to benefit from mobile Internet technology, health care is one of the most promising. In just one application— management of chronic disease—this technology potentially could cut more than $2 trillion
Slide 21: Near-Term Plan Will
GLOBALSTAR’S NEAR-TERM PLAN WILL Dramatically expand the Nation’s spectral capacity to relieve existing Wi-Fi congestion; Be managed over a carrier-grade network of access points designed and operated to minimize any impact on Globalstar’s continued provision of MSS services; Not displace any
Slide 22: Globalstar's Long-Term Plan
4 GLOBALSTAR’S LONG-TERM PLAN 21
Slide 23: Long-Term Plan
GLOBALSTAR’S LONG-TERM PLAN Globalstar requests that our additional MSS Uplink spectrum be included within the AWS-5 Terrestrial license for Low Power Uplink services only between 1610 and 1617.775 MHz Request a full rulemaking to address any potential interference issues from neighboring intere
Slide 24: Petition — Current Status
GLOBALSTAR’S PETITION — CURRENT STATUS Filed a petition for rulemaking with the Commission on November 13th requesting terrestrial authority to offer a variety of mobile broadband services in its Big LEO spectrum allocation; Globalstar’s petition contained both a “near-term” proposal for a rulem
Slide 25: The Future Is Clear!
THE FUTURE IS CLEAR! We are servicing over 550,000 customers world-wide with our unique product offerings. We require all of our existing spectrum to provide these critical Mobile Satellite Services. We should be permitted to utilize all of our spectrum as intensively as possible for MSS and T