Strategic Analysis of GlobalstarEssay Preview: Strategic Analysis of GlobalstarReport this essayI. IntroductionA. Business CaseGlobalstar Inc. is a leading provider of global mobile voice and data communication services globally through the use of satellites. Globalstar currently utilizes 36 in-orbit satellites and 24 operational ground stations to offer their voice and data services. They refer to this network of satellites and gateways as the Globalstar System. The Globalstar constellation is comprised of Low Earth Orbiting (LEO) satellites that pick up signals from over 80% of the Earths surface, excluding the extreme polar regions and mild-ocean regions.[ Globalstar Inc. 2011 Form 10-K]
A. The OverviewA. IntroductionThe United States-based US Strategic Network is a commercial satellite service provider that utilizes high-performance, low-cost, high-cost communications equipment to serve its users (including remote control) throughout the globe. The Globalstar System provides two-way GPS connectivity for their satellite service. For some of their satellite service users, the Globalstar System provides high-speed Internet connectivity via 3G network. It also offers an array of remote support services such as cellular, DSL and mobile Wi-Fi. Although these services may sometimes require high speeds, globalstar provides high speeds that are not available to most users outside of the US. [ Globalstar Inc. 2011 Form 10-K]
World Mobile Internet
Worldwide Mobile Internet (WMT) is a national, international, interoperable mobile internet service provider. WMT uses the Internet backbone of the United Nations and other UN member states’ major Internet networks to provide worldwide connectivity, speed, speed-and-availability for a wide range of applications including business. World Mobile Internet and WMT have two main components: World Mobile Internet (WMT) and Global Mobile Internet (GMA) Service (GMA) that share the same GlobalStar network. WMT is used principally by mobile device makers and services providers, among which are broadband Internet providers and internet service providers. GMA serves to make world mobile internet (GMA) available worldwide. GMA’s network includes the GlobalStar System, which integrates both satellites and other low earth orbit Internet content. GlobalStar systems include LIR-2 satellites, a constellation of 6 satellites in various sizes and with a range of 30 to 60 kilometres. [World Mobile Internet and WMT 2011 Form 10-K] World Mobile Internet (WMT) is primarily used as an internet service provider. In its role as a third party provider of satellite services, world mobile Internet offers high speed, low latency internet and is a great complement to GMA and GMA Globalstar services when it comes to providing information and messaging by offering service. By offering high frequency data at reasonable cost and quality, Internet Service Provider Group (ISPF) has been able to scale its market to over 200 countries using its LIR-2 technology. Internet Service Providers (ISPs) can provide WMTs by providing services such as Internet Broadband Internet (IBS)…
Globalstar Web Services
Globalstar’s web services provide a significant portion of international network and content, including regional and local networks. For example, World Data Services provides web services to clients in the context of global data services services, like regional and local data transfers. In addition, Globalstar provides access to World Data Services for local data transfers to other countries including the United
Globalstar was incorporated in Delaware in 2006. Globalstars headquarters is located inCovington, Louisiana and they currently have 239 employees. Their products and services are currently sold, distributed, or available in over 120 countries around the globe. Globalstar provides these products and services to several markets, including: recreation and personal, government, public safety and disaster relief, oil and gas, maritime and fishing, natural resources, mining and forestry, construction, utilities, and transportation. At the end of 2011, Globalstar served approximately 486,000 subscribers.[ Ibid] [ Bruns, Adam. “Project Watch.” Site Selection.
Globalstar provides satellite communication through various services. They offer two-way voice communication and data transmissions, referred to as “Duplex,” between mobile or fixed devices as well as one-way data transmission between mobile or fixed devices, which include their “SPOT” family of products and their “Simplex” products. Globalstar offers equipment for each of these services designed to work on their satellite network.[ Globalstar Inc. 2011 Form 10-K]
They are currently completing the process of launching their second-generation satellites, which are forecasted to be fully operational by the end of 2012. This satellite constellation is designed to increase service level results to make their products and services more desirable to current and prospective consumers. The FCC has authorized Globlastar to operate their first-generation satellites in 25.225 MHz of radio spectrum and operate their four domestic gateways in the 5091-5250 and 6875-7055 MHz bands. Globalstar has licensed and registered their second-generation satellite constellation in France. They received approval by the FCC to operate their domestic gateways for these second-generation satellites in March 2011.[ Ibid]
The FCC is also issuing an order for the development, certification, and launch of Globlastar’s Globestar Skydome. Globestar’s license will consist of 12 additional global satellite segments including the 2135-3230, 2270-2225, and 2276-2350 segments. Further satellite licensees will provide the necessary capacity to continue to operate Globlastar’s satellite constellation.[ Id xvi]
In addition, Globlastar is currently conducting research from a portfolio of industry experts to ensure that they meet competitive and regulatory expectations for their constellation, based on their mission objectives to “ensure and maintain high frequency stability and performance by enabling the adoption of advanced industry-leading technologies and technologies of unprecedented importance for the use of space, telecommunications, information, communications, and data.”
[Footnote 1] Globestar is in a position to enter service with the National Telecommunications and Information Administration’s (NISIA) National Communications Satellite Competency Initiative. Globestar is licensed under a federal program of grant grant (the Foreign Internet Research-Type Grant for Technology and Industry (FROST-LAG)). In order for Globestar to become a licensee for the National Communications Satellite Competency Initiative (NSISI), the National Telecommunications Industry Coordinating Committee should review the NSISI and determine whether the licensee has met the requirements of the NSISI, that it has not been “infringemented” with an existing NSISI certification, and that Globestar is in a position to become a qualified licensee once it receives the required state and federal approval, according to the NSISI’s approval.
[Footnote 2] Globestar issued its initial public comments in October 2011 at a meeting attended by more than 100 staff and clients. Globestar CEO Richard Fong and Chief Executive Officer Tom J. Clark spoke at three prior events and announced the formation of Globestar Operations Group, a new, vertically integrated company that will further develop Globestar into a global, publicly available and interoperable communications management and communications systems company with “one key role.” Globestar currently employs approximately 25 employees nationally. Globestar’s CEO said:
“We’re seeing a real opportunity here. We are opening up a space of service in a lot of different ways, one of them being the international satellite fleet. We have so far been able to launch our entire fleet of CubeSats in that space, and there are really new and exciting new platforms coming by the day. We’re not going to stay silent about this, though. This is a huge opportunity that many of us see. To be truly international, our ability to launch these satellites is going to evolve more as we expand into more countries around the world,” he said. Globestar’s portfolio includes satellites in Chile, India, Indonesia, Israel, New Zealand, Israel and South Korea.
During that public presentation, Globestar Chairman and CEO Tim Eller
Globalstar conducts sales through various outlets. They have a sales group that is responsible for leading direct sales with primary accounts and managing agent, dealer, and reseller relationships. Aside from reseller channels and dealers, Globalstar also offers products and services directly to the end-user, through their existing sales force and through the use of their e-commerce website. Specific products are available for sale at large retail stores, such as Best Buy and Wholesale Sports.[ Globalstar Inc. 2011 Form 10-K]
Globalstar competes in the Mobile Satellite Services sector of the Satellite Industry, within the larger Global Communications Industry. In 2009 Globalstar acquired Axonn, their principal SPOT products supplier, to help them become vertically integrated and cut costs. Spot LCC, is a wholly owned subsidiary of Globalstar, Inc.[ “SPOT Connect Satellte Communications App Available on App Store.” Press Release- Globalstar.
B. Brief HistoryThe original Globalstar plan was launched in 1991 as a joint venture led by Loral Space and Communications and Qualcomm Incorporated.[ “Globalstar Files for Bankruptcy .” Space and Tech.
Globalstar was formed as a Delaware limited liability company, and later converted into Globalstar Inc., in 2006, bringing new life to Globalstar. Globalstar completed their initial public offering in 2006, offering one million shares at $17 per share. The stock began trading on the NASDAQ under the symbol GSAT.[ “Globalstar Prices Its IPO.” Satellite Today.