COVINGTON, La., Oct. 6, 2014 (GLOBE NEWSWIRE) -- Globalstar, Inc. (NYSE MKT:GSAT) issued the following statement in response to today's presentation by Kerrisdale Capital:
Kerrisdale's presentation is fundamentally flawed and completely mischaracterizes a combination of industry facts and Globalstar's long-term spectrum and operational prospects. Kerrisdale's false assertions are driven solely to negatively impact Globalstar's share price for its own benefit, and are contrary not only to Globalstar's view, but that of both the communications industry and the Federal Communications Commission ("FCC").
- Regulators and major industry players all agree that current Wi-Fi capacity is at or near exhaustion:
- FCC Chairman Tom Wheeler: "Wi-Fi has become a victim of its own popularity, and now faces congestion issues of its own. That's why the Commission is hard at work providing spectrum for both licensed and unlicensed use. Both are critically important to our mobile ecosystem." i
- Former FCC Interim Chairwoman and Current Commissioner Mignon 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, is increasingly congested particularly in major cities. Densely populated centers are the most expensive geographic areas to deploy licensed networks." ii
- Former FCC Chairman Julius Genachowski: "As consumer adoption of wireless devices continues to soar, Wi-Fi congestion is becoming a critical problem for consumers and innovators." iii
- Google and Microsoft: "[2.4 GHz unlicensed spectrum] has become saturated during certain times of day in heavily trafficked areas such as city centers, apartment buildings, and public events. This congestion imposes a large cost on consumers because Wi-Fi is the most heavily used method of wireless broadband connectivity and the 2.4 GHz band is the core Wi-Fi band today." iv
- Cisco Systems: "[T]he 2.4 GHz band will continue to be an important source of unlicensed spectrum for the foreseeable future because … the demand for Wi-Fi is projected to outpace the Commission's ability to allocate additional spectrum resources, and because the 2.4 GHz band is the only globally harmonized unlicensed band suitable for Wi-Fi." v
- The White House's Council of Economic Advisers has predicted that U.S. wireless data traffic will increase 20 times over the next five years, and the FCC has estimated that 275 MHz of new spectrum would be needed by year's end.
- 5 GHz is not a viable substitute or replacement for more 2.4 GHz spectrum. According to a May 28, 2013 report by the National Cable & Telecommunications Association vi:
- "2.4 GHz band will likely reach exhaustion by 2014."
- "2.4 GHz band involves better propagation than the 5 GHz band by a factor of 4.3X."
- "5 GHz may suit some, but not all, of their needs. Namely, if suitable rules are established 5 GHz may provide substantial capacity, but not coverage."
- Globalstar's TLPS solution provides meaningful propagation, attenuation and build-out cost advantages as compared to 5 GHz. Additionally, TLPS' superior signal to noise characteristics provide a greater mechanism for improved throughput and capacity as compared to any existing 2.4 GHz Wi-Fi channel. We look forward to a successful completion of the FCC rulemaking process this year and remain confident in our ability to effectively utilize our spectrum for terrestrial mobile broadband services.
We remain focused on driving our company forward as we strive to continue to grow our core MSS business and improve and broaden spectrum capabilities.
i Statement of FCC Chairman Tom Wheeler, ET Docket No. 13-49.
ii Statement of Former FCC Interim Chairwoman and Current Commissioner Mignon Clyburn, ET Docket No. 13-49.
iii Statement of Former FCC Chairman Julius Genachowski, January 2013.
iv Comments of Google, Inc. and Microsoft Corporation, ET Docket No. 13-49.
v Comments of Cisco Systems, Inc. filed in IB Docket No. 13-213; RM-11685.
vi "Revision of Part 15 of the Commission's Rules to Permit Unlicensed National Information Infrastructure (U-NII) Devices in the 5 GHz Band." COMMENTS OF THE NATIONAL CABLE & TELECOMMUNICATIONS ASSOCIATION (May 28, 2013).
About Globalstar, Inc.
Globalstar is a leading provider of mobile satellite voice and data services. Globalstar offers these services to government, commercial and recreational users in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, Simplex and Duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Globalstar customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.
CONTACT: Investors: Email: email@example.com Phone: (985) 335-1538 Media: Joele Frank, Wilkinson Brimmer Katcher Kelly Sullivan or Jim Golden Phone: (212) 355-4449