Globalstar Spectrum Holdings
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Globalstar Overview 2017 Table of Contents 1) Mobile Satellite Services Business 2) Terrestrial Authority for Globalstar’s Licensed 2.4GHz Spectrum 2 1) Mobile Satellite Services Business 3 Unsaved Document Unsaved Document 2/22/201217:42/ / Company Overview Globalstar is a Louisiana-based provider of Mobile Satellite Services (“MSS”) with a full product suite supporting both one-way and two-way communications beyond the range of traditional cellular services ● Headquartered: Covington, LA ● Founded in 1991 as a partnership between Loral Space and Qualcomm ● Thermo Companies purchased Globalstar in 2004 ‒ Thermo has invested over $600mm over the last 10 years History & facts ‒ Thermo owns ~65% of Globalstar ● Listed NYSE MKT (GSAT) ● Number of employees: 340 ● Operations and network control centers: Milpitas, CA; Covington, LA; Aussaguel, France ● Global satellite network ‒ New satellite upgrade completed in 2013 ($1bn investment) ‒ Completed ground network upgrades using Hughes & Ericsson equipment – RAN + Core Network ‒ Approaching 700k subscribers globally Key assets ‒ EBITDA positive operations ● 25.225 MHz of global spectrum authorized by ITU ● FCC approved terrestrial usage of 11.5 MHz of licensed S-band spectrum 4 Globalstar Satellite Constellation ● 8 planes, 3 satellites each; 114-minute orbit period ● 70 S to 70 N latitude coverage; minimum two satellite coverage in temperate zones How are satellites configured? ● High signal quality and availability – dynamic power control for changing conditions, coherent combining increases signal strength ● Bent-pipe architecture – provides low latency and enhanced service quality ● Satellite constellation communicates by reflecting the signals from user terminals to the gateway antennas for return link and from gateway antennas to user terminals for forward link How does the ● As a satellite acquires a signal from a subscriber, the subscriber is authenticated by the serving gateway and the constellation connection is established by the Public Switched Telephone Network (“PSTN”) or Public Land Mobile Network work? (“PLMN”) to a terrestrial wired or wireless subscriber ● Data connections are made in a similar manner to voice calls except for Simplex where the data message is established via internet connection Second-generation satellite diagrams 5 First-Generation vs. Second-Generation Satellites First-generation satellites Second-generation satellites Satellite life ● 7.5 Years ● 15 Years Data speeds ● 9.6 kbps (uplink and downlink) ● Up to 256 kbps (uplink and downlink) Relative system ● 100 ● 140+ throughput Supporting ● CDMA ● IP-based WCDMA network Build-out cost ● Approximately $5 billion ● Approximately $1 billion 6 Globalstar Bent-pipe Architecture The Globalstar network has a “bent-pipe” architecture with the “brains” of the system located on the ground. Thus, the network can be more easily upgraded to ensure that customers always have the most technologically advanced mobile satellite services. C-Band L-Band (6875-7055 MHz) (1610-1618.725) C-Band S-Band (5091-5250 MHz) (2483.5-2500 MHz) PSTN Gateways Internet Mobile Earth Devices (Globalstar Phone / SPOT) 7 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 Oct ‘10 July ‘11 Dec ‘11 Feb ‘13 Four successful launches Launch All new satellites providing full commercial service since August 2013 Campaign Highlights 15-year design life “Land-line quality” voice via satellite 8 Globalstar Ground Stations and Office Locations Globalstar’s Footprint Novosibirsk, Russia Dublin, Ireland Moscow, Russia Wasilla, Alaska Khabarovsk, Russia Smith Falls, Canada High River, Canada Toulouse, France T Mississauga, Canada Aussaguel, France Milpitas, CA Ogulbey, Turkey T Clifton, TX T Covington, LA (Headquarters) Beijing, China Yeo Ju, South Korea** T Sebring, Florida Riyadh, Saudi Arabia San Martin, Mexico Las Palmas, Puerto Rico Key: Kaduna, Nigeria* Owned Gateway Los Velazquez, Panama City, Panama Venezuela Independent Gateway Singapore Independent Gateway in Manaus, Brazil Petrolina, Brazil Place But Inactive T T&C Sites Lurin, Peru Mount Isa, Australia Rio de Janeiro, Brazil Office Locations T Presidente Prudente, Brazil Gaborone, Botswana *** * Globalstar retains 30% equity interest T Meekatharra, Australia T ** Globalstar retains 49% equity interest (Simplex only) Dubbo, Australia *** Globalstar retains 74% equity interest Bosque Alegre, Argentina 9 Globalstar’s Upgraded Ground Network Globalstar’s upgraded ground network will allow for improved voice and data transfer speeds as well as the development of enhanced new products Key vendors Scope of work Benefit to Globalstar ● New chipsets will significantly lower the cost of Globalstar handsets and other devices ‒ Enables Globalstar to release affordable products ● Design, supply and implement the Radio with a small form factor Access Network (“RAN”) ground network Ground network ● Upgrades air interface to modern ● Design second-generation interface chips for standards new handsets ● Enables voice and data transfer rates of up to 256 kbps for uplink and downlink ● Develop, implement and maintain a ground interface, or core network, system ● Allows additional product Core functionality and applications network ● Modern and standard telco core network for maximum flexibility 10 Key Elements of Second-Generation Ground Network Increased Data Speeds Gateway Diversity Downlink throughput increased from 9.6 to up to Expands coverage footprint 256 kbps Increases service quality Enables new applications including web browsing Improves call completion rates 25x current speeds, 100x vs. competition Globalstar Second-Generation SecondGround-Generation Upgrades Ground Enables New Products Enhanced Capacity Smaller data boards Voice and data capacity Less expensive components – increase materially material reduction in pricing Increased ability to service a Increased ease of integration large sub base with expanding into other devices / products data demands 11 Core MSS Addressable Market No terrestrial network Failure of terrestrial network Existing terrestrial network Asset tracking / low cost Areas outside Critical mobile satellite services alternative to international cellular networks during disasters roaming Connectivity to two billion people Provides alternative network access in Provides the ability to track anything, who live, work and/or play in areas areas prone to natural disasters anywhere, anytime globally not covered by cellular service Provides public safety with needed Provides low cost alternative to Over 150 million adventure trips connectivity when cellular service is down international roaming when traveling taken annually (1) due to overloaded / failed infrastructure abroad ‒ $2-$3 per minute with traditional 75% world’s land mass is without Enables basic services, NGOs, cellular companies vs. $0.37 per terrestrial coverage (2) emergency response and business minute on Globalstar’s high continuity volume usage plans (3) Source: Adventure Tourism Market Report by George Washington University, Adventure Travel Trade Association, Xola Consulting, Informa Telecoms & Media. (1) Adventure Tourism Market Report by George Washington University, Adventure Travel Trade Association, Xola Consulting. Statistic based on survey conducted with participants in Latin America, North America, and Europe. (2) CIA World Factbook. (3) Based on plan “Orbit Unlimited“ at $149.99 / month assuming 400 minutes per month of usage. 12 Globalstar’s Select Product Portfolio Globalstar has a full product suite supporting both one-way and two-way communications beyond the range of traditional cellular services Duplex SPOT Simplex GSP 1700 / SPOT Sat-Fi SPOT Gen3 SPOT Trace STX3 SmartOne B Global Phone Image Portable two-way Connects any Wi- Flexibility to Traces the path of World’s smallest Designed for the satellite phone Fi enabled device outdoor enthusiasts anything, anytime, M2M transmitter intelligent with full voice and to Globalstar’s to send pre-defined anywhere for management of Enables VARs and data capabilities satellite network messages & GPS consumer assets powered and non- OEMs to develop for voice and data coordinates while powered fixed and Key applications smaller, more services beyond off the grid movable assets include theft efficient M2M While the GSP- the range of Battery life 2x prevention solutions Provides solution 1700 targets the cellular networks SPOT 2 – for engine runtime commercial Extreme Tracking Applications include Targets boaters, enhanced reporting and major market segment, offered at $99.99 wide range of emergency customization fault monitoring for Features the SPOT Global per year assets including responders, oil & features – smaller portable phone is LPG tanks, water gas workers, form factor construction consumer-focused tanks, vehicles, etc. miners, ranchers equipment as well USB for line power etc. as tracking eliminates need for intermediate bulk Later version will battery replacement containers, vehicles be targeted and boats towards the mass consumer market 13 Satellite Product Evolution Existing / Legacy Product Line New Products: Second-Generation GSP 1600 GSP 1700 Commercial Sat-Fi Sat-Fi 2 Inexpensive product that turns any Wi-Fi enabled device into a satellite phone Duplex Targets the mass market consumers Expected release date: 1H 2017 Satellite STX2 STX3 Transmitter Unit Simplex