COVINGTON, La., Oct. 13, 2014 (GLOBE NEWSWIRE) -- Globalstar, Inc. (NYSE MKT:GSAT) issued the following statement in response to Kerrisdale Capital's ("Kerrisdale") recent filing with the Federal Communications Commission ("FCC"):
Kerrisdale's FCC filing is nothing more than another attempt by a short seller to drive the price of Globalstar's stock down for its own short term financial gain.
Terrestrial Low Power Service ("TLPS") represents a differentiated, premium and immediate solution to global Wi-Fi congestion, and we are confident in our ability to capitalize on this opportunity for our shareholders.
Kerrisdale's arguments demonstrate a lack of understanding of our company and our industry, and are now contradictory. Last week, Kerrisdale claimed that Wi-Fi congestion was a myth. This week, Kerrisdale has changed its position and undermined a core component of its own thesis by asserting that Wi-Fi congestion may actually exist and that easing the rules regarding the use of Channel 13 "could be an especially valuable resource for wireless local area network[s]." While Kerrisdale's story continues to change, Globalstar and the broader communications industry remain consistent. Industry regulators and major industry participants agree that Wi-Fi congestion is real and must be addressed.
We have made tremendous progress at the FCC regarding TLPS and look forward to the Commission adopting its proposed rules promptly. We do not believe there is anything in Kerrisdale's filing that will affect this timing.
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.
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