Loading Quotes...

Bringing Globalstar’s High-Flying
Spectrum Story Back to Earth

GSAT’s Spectrum is Worthless



Not the Same as Cellular Spectrum:
Wifi and Cell Tower iconsThe FCC has ignored Globalstar’s request to make its spectrum available for cellular use, entertaining only its Wi-Fi proposal, which means users will be restricted to transmitting signals that are 10x lower than typical cellular signals.
Frequency Matters:
Spectrum value as a function of frequency
Low-frequency spectrum is exponentially more valuable than high-frequency spectrum like GSAT’s, rendering most comp analyses far too optimistic. Clearwire’s spectrum, right next door to GSAT’s in frequency terms, sold in July 2013 for $0.30 per MHz-pop – implying 85% downside for GSAT.




GSAT’s Wi-Fi Proposal Will Never Be Commercially Viable

Quote section 2

Bulls dream big about GSAT’s proposed Wi-Fi-like service, TLPS. But TLPS will be, in Cisco’s words, “nothing more than a paid Wi-Fi offering.” Yet GSAT’s market value exceeds that of the largest paid-Wi-Fi firm, Boingo (WIFI), by 28x.

Wi-Fi “Congestion” is Massively Overstated

There is already plenty of Wi-Fi spectrum to go around, and more is on the way.

GSAT spectrum vs unlicensed wi-fi spectrum

Average Wi-Fi speeds already exceed most requirements.How much speed do you need


Academic researchers agree:

Emperor has no problem

Wifi networks are underutilized

Successful Large-Scale Wi-Fi Deployments Abound


With engineering best practices and up-to-date technology, Wi-Fi performs great on current unlicensed spectrum, even in highly dense, bandwidth-hungry environments.

Super Bowl XLVIII

  • Free Wi-Fi for 82,529 fans
  • 3.2 terabytes of traffic

Sochi 2014 Winter Olympics

  • 2,500 Wi-Fi access points supporting 120,000 simultaneous mobile devices

Mobile World Congress 2014 (Barcelona)

  • Free Wi-Fi for >80,000 attendees
  • 19.1 terabytes of traffic

Stanford University Computer Science Department Building

  • 2,700 unique clients per month
  • 1.32 terabytes of monthly traffic

Apple Worldwide Developers Conference 2014

  • 1,000 Apple engineers and 5,000 third-party developers


When bad Wi-Fi can already be fixed using today’s best practices on public bands, who will have any interest in one licensed, private Wi-Fi channel? And the technology for high-density Wi-Fi environments is only getting better every day.

Just Ask Yourself


In a world where:

  • Unlicensed Wi-Fi, when available, is already superior to cellular service
  • Free Wi-Fi is offered by more and more businesses and venues
  • 5GHz Wi-Fi is supported by all new devices and will enable far faster peak speeds than 2.4GHz
  • <0.1% of the US population has demonstrated any willingness to pay a dime for Wi-Fi access, let alone faster Wi-Fi access
  • The notion of unmanageable spectrum congestion is belied by the widespread success of Wi-Fi deployments in stadiums, universities, businesses, etc.

Does TLPS have any remotely viable future? Or is TLPS merely Globalstar management’s latest scheme to “totally not go bankrupt this time”:

Quote section 5

Prepare for Dilution

GSAT minimum EBITDA covenants

GSAT has almost $600 million in net debt but hasn’t been profitable in years. It’s unlikely to be able to meet its financial covenants in the coming years.

A dilutive capital raise is a real possibility. Recently, Iridium, a major player in GSAT’s industry with a very similar debt facility, was also on track to violate its covenants. In May, its creditors forced it to raise over $200 million in new equity.


This disclaimer is issued in connection with the website www.factsaboutglobalstar.com (the “Website”) maintained by Kerrisdale Capital Management, LLC (“Kerrisdale”), an investment adviser to funds that are in the business of actively buying and selling securities and other financial instruments.

Kerrisdale and its affiliates (collectively “Kerrisdale”), others that contributed research to this report and others that we have shared our research with (collectively, the “Authors”) have short positions in and own options on the stock of Globalstar and stand to realize gains in the event that the price of the stock declines.

All expressions of opinion are subject to change without notice, and the Authors do not undertake to update or supplement this report and webcast or any information contained herein.

Following publication of the content on the website, including the report and webcast, the Authors may transact in the securities of the company covered herein.
The Authors disclaims any obligation to notify the market or any other party of any such changes. The information and opinions contained in the Website are based on publicly available information about Globalstar and other companies. Kerrisdale recognizes that there may be non-public information in the possession of Globalstar or others that could lead Globalstar or others to disagree with Kerrisdale’s analyses and conclusions.

The Website includes forward-looking statements, estimates, projections and opinions prepared with respect to, among other things, certain legal and regulatory issues Kerrisdale faces and the potential impact of those issues on its future business, financial condition and results of operations, as well as, more generally, Kerrisdale’s anticipated operating performance, access to capital markets, market conditions, assets and liabilities. Such statements, estimates, projections and opinions may prove to be substantially inaccurate and are inherently subject to significant risks and uncertainties beyond Kerrisdale’s control.

Although Kerrisdale believes the statements it makes in the Website are substantially accurate in all material respects and do not omit to state material facts necessary to make those statements not misleading, Kerrisdale makes no representation or warranty, express or implied, as to the accuracy or completeness of those statements or any other written or oral communication it makes with respect to Globalstar and any other companies mentioned, and Kerrisdale expressly disclaims any liability relating to those statements or communications (or any inaccuracies or omissions therein). Thus, shareholders and others should conduct their own independent investigation and analysis of those statements and communications and of Globalstar and any other companies to which those statements or communications may be relevant.

The statements Kerrisdale makes on the Website are not investment advice or a recommendation or solicitation to buy or sell any securities. Except where otherwise indicated, those statements speak as of the date made, and Kerrisdale undertakes no obligation to correct, update or revise those statements or to otherwise provide any additional materials. Kerrisdale also undertakes no commitment to take or refrain from taking any action with respect to Globalstar or any other company.

All users and listeners agree and consent to exclusive jurisdiction and venue of any dispute or proceeding relating to or arising from the Website or any related subject matter in the Courts of the State of New York in New York County or in the Federal courts located in the Southern District of New York.

As used herein, except to the extent the context otherwise requires, Kerrisdale includes its affiliates and funds it manages or advises and their respective partners, directors, officers and employees.

Accept Decline