Why Globalstar Inc. Stock Plunged Today

While the Company has worked hard with the Commission and supports the Commission's efforts over the past few years, given the concerns expressed by Commissioners and parties participating in our proceeding, the Company now seeks to narrow the relief it originally requested. Globalstar requests that the Commission adopt a subset of the rules contained in the 2013 NPRM and permit the terrestrial use of Globalstar's 11.5 MHz of licensed spectrum in the 2.4 GHz band for low-power terrestrial broadband services. This new proposal will allow consumers to further benefit from recent technology and ecosystem advancements that make it possible for the band to be rapidly added into the nation's operational broadband inventory. We believe that Globalstar's concession should resolve the remaining technical and policy issues in this proceeding and allow the Commission to now move forward expeditiously while creating a substantial benefit for the wireless market.

Now what

To be fair, this doesn't mean Globalstar has failed completely in progressing its TLPS agenda with the FCC. But it's hard to blame investors for worrying since this indicates its initial proposal is being viewed as a too-broad solution. In the end, while Globalstar's concession might be just what the FCC needs to move forward, I'm still content watching the company's progress from the sidelines.

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