Globalstar gets FCC greenlight for satellite upgrades and expansion

Globalstar's stock rose $0.08 (6.4%) to $1.33 on Monday after the company announced that the FCC granted a 15-year license extension to its HIBLEO-4 satellite constellation. 

The FCC said it would allow Globalstar to operate up to 26 replacement satellites or "non-geostationary satellite orbit (NGSO) space stations in low-Earth orbit (LEO)," if you're really into space jargon. 

In the FCC's order, the Commission denied competitor SpaceX's challenge to Globalstar's petition. "After review of the record, we conclude that grant in part of Globalstar's application will serve the public interest, subject to the requirements and conditions specified herein," the Commission wrote. "We conclude that SpaceX's arguments are not sufficient to warrant denial or dismissal of Globalstar's application."

"The satellite refresh program is expected to result in improved performance and coverage for Globalstar's mobile satellite services, including Direct to Device satellite connections, around the world," said Globalstar CEO Dr. Paul Jacobs in the company's press release. "Achieving this milestone is imperative to Globalstar to enable us to complete our mission of providing critical mobile satellite connectivity and lifesaving technology worldwide."

Apple's iPhone wins again

Related:Apple could eclipse wireless operators' satellite plans

Globalstar's licensed MSS (mobile satellite service) supports several direct-to-device features for Apple's iPhone 14 and iPhone 15 smartphones, including emergency SOS, roadside assistance and the "Find My" app, which allows folks to track their family and friends with satellite assistance. 

The Apple services that Globalstar provides were initially offered in 2022 as "emergency only." More recently, Apple's iOS 18 mobile operating system opened those satellite-based messaging services up to a wider (non-emergency use) audience in countries where the service is available. This gives the device maker a huge head start on AT&T and T-Mobile, which are investing heavily in satellite-powered coverage to augment their 5G offerings.

By partnering with Globalstar, though, Apple found a company with an established satellite network, a track record of service and exclusive rights to the spectrum associated with its system. 

The FCC noted that "Globalstar's MSS system has been in continuous operation in the United States for more than two decades, providing service to over 760,000 end user customers with millions more potentially benefiting from its direct to handset emergency service."