Globalstar Reveals 3GPP Approval of Spectrum, Also Settles Litigation
Globalstar revealed that the Third Generation Partnership Project (3GPP) has approved a global standard for terrestrial use of Globalstar’s spectrum at 2483.5-2495 Megahertz. 3GPP has designated Globalstar’s terrestrial S-band as Band 53, which now permits LTE services in the U.S. with additional geographies expected to be added in 2019.
The approval provides for Time Division Duplex (TDD) services in Band 53 as a standalone band, and allows Globalstar’s spectrum to serve as an anchor channel for carrier aggregation and Licensed Assisted Access (LAA) next year. The physical properties of the 2.4 Gigahertz band help enable high capacity indoor and outdoor applications benefiting from intensive levels of spectral reuse without the need for macro cellular coordination. Band 53 can now be integrated into user equipment and cellular infrastructure. Uniquely, Band 53 provides a single coast-to-coast contiguous license in the U.S., and the growing number of international terrestrial approvals provide harmonization opportunities globally.
Additionally, Globalstar, together with Mudrick Capital Management, Warlander Asset Management, and all other litigation parties have entered into a settlement agreement related to the litigation brought by Mudrick Capital and Warlander in Delaware Chancery Court involving Globalstar and certain of its directors, officers, and employees. As a result, the parties have agreed to the addition of three new telecom executives to the Company’s Board of Directors: Keith Cowan, Ben Wolff, and Mike Lovett. The settlement agreement also requires Globalstar to conduct an undiscounted equity offering (less any underwriting discount) of its common stock to qualified and readily identifiable Globalstar stockholders on a pro rata basis, based on ownership, in an amount recommended by Globalstar’s management of not more than $60 million, exclusive of any funds raised pursuant to an underwriter option