In The News

Globalstar’s long game in satellites pays off with Apple iPhone 14 deal

9/9/2022

Fierce Wireless - It’s a big deal for a company whose valuation is peanuts compared to the behemoth that is Apple. Globalstar struggled for years, to the point it went through bankruptcy in 2002. But it’s a different company now, and its current leaders couldn’t be more excited for the future. Granted, there’s “a lot of noise out there,” but Globalstar VP of Strategy and Communications Kyle Pickens said he believes over time, people will see Globalstar as a new kind of telecom company with stable cash flows and huge growth opportunities. “We’re extremely excited about it,” he told Fierce. Globalstar has had a very long journey in the low Earth orbit (LEO) space, Kagan acknowledged. “There’s been a complete renaissance of the LEO,” he said. “It’s pretty exciting to see that change.” They believe what they’ve accomplished with their “partner” Apple, which they decline to talk about specifically other than what’s publicly stated in SEC filings, has changed the satellite industry forever. It’s an incredibly exciting time, even if it’s not reflected in the share price, which was around $1.84 this morning after a highly volatile week. “We definitely see this as a success story,” Kagan said. Read More >

Apple’s Emergency SOS link puts it in the satellite fight with SpaceX and more

9/8/2022

The Verge - Apple has partnered with Globalstar for its satellite operations, and it plans on using the company’s 24-satellite constellation to run its service, confirming the long-running rumors about its plans for the Band 53 / n53 communications. In practice, this means that Apple has joined the litany of companies attempting to “eliminate dead zones,” as T-Mobile put it when it announced a partnership with SpaceX last month to create its own emergency communications service. Based on Globalstar’s revenue estimates in the filing, Tim Farrar, an analyst at satellite and telecom-focused consulting and research firm Telecom, Media and Finance Associates, said that he expects those satellites to cost Apple up to $50 million by 2026. Farrar also noted that Apple seems to be paying a “relatively low price” for the service. “Globalstar had revenues of $124 million last year. This is scheduled to go up to $185-$230 million in 2023,” he said, saying that indicated Apple would be paying around $110 million to Globalstar next year. Apple has announced the service will be free to users for the first two years but hasn’t said how much it’ll cost after that. Read More >

iPhone 14 to have satellite emergency SOS feature

9/8/2022

CBS Boston - Adding satellite service to new iPhones "should dominate the headlines," according to Ben Wood, chief analyst at CCS Insight. "The investment to add satellite capability should not be underestimated. It will likely have taken Apple years to put all the pieces of the puzzle in place including a commercial agreement with satellite provider Globalstar and the creation of the infrastructure needed to pass messages to the emergency services," Wood said. Globalstar confirmed in a financial filing that it is the contractor for this project. Apple did not immediately respond to an email request for additional information. Read More >

Apple to be largest user of Globalstar’s satellite network for iPhone messaging

9/8/2022

Space News - Apple formally announced its long-anticipated partnership with Globalstar Sept. 7 to provide satellite messaging services for new iPhones and becoming Globalstar’s biggest customer. As part of the agreement, Globalstar said it will allocate 85% of its network capacity to Apple. Globalstar said it will continue to offer its own services, such as internet-of-things connectivity, through the remaining 15% of capacity on the system, while also exploring terrestrial applications of its spectrum. “Globalstar expects that its business strategy will allow it to generate reliable cash flow with substantial growth potential and greater profitability,” the company said in its SEC filing. The company, which reported $124.3 million in revenue in 2021, says it expects to increase that to between $185 million and $230 million in 2023, with a further 35% increase by 2026. Read More >

Apple iPhone 14 will have emergency satellite connectivity

9/7/2022

Fierce Wireless - At its annual event today Apple announced that the new iPhone 14 will have emergency satellite connectivity. The service dubbed “Emergency SOS via Satellite” is a text message service to assist people who are in dire circumstances in remote areas with no regular cellular coverage.
As predicted, Apple is working with the satellite company Globalstar to offer the service, using Globalstar’s Band 53 spectrum. According to Reuters, Apple will pay for 95% of the approved capital expenditure for the new satellites needed to support the service. Read More >

The 3 biggest iPhone 14 takeaways: Satellites, eSIMs and Dish

9/7/2022

Light Reading - As expected, Apple's new iPhones can connect to Globalstar's satellites through Globalstar's 2.4GHz S-band spectrum, dubbed Band 53. Apple said it will offer the satellite messaging capability to its new iPhone customers for free for two years. However, the company is touting the messaging-only capabilities for emergencies only. "With Emergency SOS via satellite, iPhone front-loads a few vital questions to assess the user's situation, and shows them where to point their phone to connect to a satellite," Apple explained in a release. "The initial questionnaire and follow-up messages are then relayed to centers staffed by Apple–trained specialists who can call for help on the user's behalf. This breakthrough technology also allows users to manually share their location over satellite with Find My when there is no cellular or Wi-Fi connection, providing a sense of security when hiking or camping off the grid." Read More >

Apple announces satellite emergency SOS feature for iPhone 14

9/7/2022

CNN Business - Adding satellite service to new iPhones "should dominate the headlines," according to Ben Wood, chief analyst at CCS Insight. "The investment to add satellite capability should not be underestimated. It will likely have taken Apple years to put all the pieces of the puzzle in place including a commercial agreement with satellite provider Globalstar and the creation of the infrastructure needed to pass messages to the emergency services," Wood said.
Globalstar confirmed in a financial filing that it is the contractor for this project. Apple did not immediately respond to an email request for additional information. Read More >

Apple picks Globalstar for emergency satellite service on iPhone 14

9/7/2022

Reuters - Apple Inc (AAPL.O) on Wednesday selected Globalstar Inc (GSAT.A) as its partner for a feature that would allow iPhone 14 users to send emergency messages from remote locations. The tech giant said it was dedicating $450 million from its advanced manufacturing fund toward satellite infrastructure to support the feature. GlobalStar will receive the majority of the funding, but the iPhone maker did not specify which other players will receive the rest and in what form. While Apple will pay for 95% of the approved capital expenditure for the new Globalstar satellites needed to support the service, Globalstar said it would still need to raise additional debt to construct and deploy the satellites. Read More >

GlobalStar (GSAT) announces agreement to be Apple's (AAPL) satellite operator

9/7/2022

Street Insider - On September 7, 2022, Apple Inc. (“Partner”) announced new satellite-enabled services for certain of its products (the “Services”). Globalstar, Inc. (“Globalstar” or the “Company”) will be the satellite operator for the Services pursuant to the terms agreement (the “Terms Agreement”) first disclosed in the Company’s Form 10-K for the year ended December 31, 2019 Read More >

Apple announces iPhone 14, iPhone 14 Pro, Apple Watch Ultra, new AirPods Pro

9/7/2022

CNBC - Apple announced a long-rumored capability to connect its iPhone 14 series to satellites for emergency services during its event on Wednesday, through a partnership with Globalstar. The feature is designed to connect an iPhone 14′s antennas directly to a satellite, to send a message in areas unconnected by cell towers. Apple’s manager of satellite modeling and simulation Ashley Williams said an algorithm in the phone compresses text messages to a size that will “take less than 15 seconds to send” to a satellite, before its relayed to a ground station and on to an emergency service provider.
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