Globalstar Gets FCC Green Light on ATC; Next Stop: Financing

“There’s money out there for our industry right now. Having an ATC decision by the Commission, and a favorable one, is an important element in our financing effort,” said William Adler, Globalstar’s vp-legal & regulatory affairs. Globalstar has been working on financing future ATC operations for months, Adler said, but had to go slow awaiting the FCC’s decision. The firm contends it’s the only MSS operator that can integrate ATC with an existing, first generation MSS system.

Globalstar officials said they're looking to join in an ATC venture with a cellular operator or reseller, or another distributor looking to expand service using satellite. Unlike MSS competitors aiming for the mass market, Globalstar plans to sell next generation ATC services to its current customer base, officials said. Agencies like FEMA or oil and gas customers that need satellite communication will benefit from Globalstar’s planned 3G and 4G ATC services, they said.

The International Bureau said it granted Globalstar’s ATC license in the name of improved mobile satellite services (MSS), emergency communications and to further economies of scale in dual-mode terrestrial/satellite handset manufacture. In its ATC application, Globalstar said it wants to deploy ATC base stations in underserved geographic regions and in urban canyons where satellite phones don’t get reception. The Globalstar system as envisioned will use a CDMA2000 air interface with speeds of up to 2 Mbps, the application said. Globalstar estimates its system could support 4 million MSS/ATC subscribers in the 10 most populous U.S. cities, plus Washington, D.C.

Globalstar said it also plans to deploy mobile ATC base stations. Portable ATCs, much like cell sites on wheels, could be set up quickly and cheaply to meet short term communications needs of public safety, military and emergency communications, Globalstar said. More broadly, portable ATC stations could be set up in remote areas for customers beyond the reach of traditional wireline and wireless services, they said. Those customers could communicate locally through the ATC base station and with the rest of the world using the satellite component of dual-mode terminals, Globalstar suggested.

Globalstar’s ATC license “looks similar” to the ATC license held by MSS competitor Mobile Satellite Ventures, Adler said. The International Bureau stuck with precedent in requiring Globalstar to have an in-orbit spare in place before commencing ATC operations, he said. “Whether you have a geostationary satellite or multiple non- geostationary satellites, you have to have an in-orbit spare or a ground spare ready,” Adler said, noting that the cellular industry provided the impetus for the requirement. But Globalstar doesn’t have an in-orbit spare, Adler said. The firm recently announced plans to launch 4-8 replacement satellites beginning in early 2007. All 8 ground spares are built, he said.

The International Bureau did impose interference limits on Globalstar to protect signals from GPS satellites in the neighboring band. The Bureau declined to adopt the ATC transmitters limits advocated by the NTIA, however, because “it didn’t find a sufficient basis in the record for doing so.” The FCC will discuss GPS protection requirements with other Federal agencies through an interagency Executive Committee, the order said. Globalstar agreed in Dec. to stricter interference limits than it had originally proposed, to placate the NTIA, the order said.

The International Bureau said grant of Globalstar’s ATC application is without prejudice to any action in pending 911 and E-911 rulemakings.