Globalstar: D2D Concerns Are A Distraction

Globalstar Inc. (NYSE American: GSAT) has been a leading name in the satellite communications industry for years. The company has received significant attention due to its direct-to-device (D2D) capabilities, particularly after its collaboration with Apple to provide emergency messaging services on iPhones. However, discussions around Globalstar’s expansion into broadband D2D services have sparked debates among investors and industry analysts, leading to concerns about its feasibility and profitability.

While these concerns are valid to some extent, they distract from Globalstar’s core strengths, ongoing infrastructure enhancements, and regulatory endorsements, which position it as a formidable player in satellite communications. Instead of fixating on speculative challenges surrounding broadband D2D, it is essential to focus on Globalstar’s existing achievements, strategic investments, and long-term growth potential in the industry.

Globalstar’s Validated D2D Services and Market Positioning

Apple Partnership and Real-World Implementation

One of the most significant endorsements of Globalstar’s D2D capabilities is Apple’s reliance on its satellites for emergency messaging services. This partnership, introduced in the iPhone 14 lineup, allows users to send SOS messages via satellite when outside of cellular coverage. The collaboration highlights Globalstar’s reliability in delivering critical communication services, particularly in emergency scenarios.

• Apple’s decision to work with Globalstar underscores the company’s technical capabilities and established infrastructure.
• The success of emergency messaging services demonstrates that D2D satellite communications are already commercially viable.
• Future iterations of Apple’s satellite services may expand the scope of Globalstar’s involvement, increasing its long-term revenue potential.

Regulatory Endorsement and FCC Approval

In December 2024, the U.S. Federal Communications Commission (FCC) granted Globalstar a 15-year renewal of its authorization to operate mobile earth terminals, including the expansion of ancillary terrestrial networks. This long-term regulatory approval reflects confidence in Globalstar’s ability to deliver satellite-based communication services and underscores its commitment to maintaining industry leadership.

• The FCC’s backing ensures stability and credibility, which is critical for attracting future partners and investors.
• The authorization renewal provides Globalstar with an extended operational window to enhance and scale its existing infrastructure.
• With regulatory hurdles cleared, Globalstar can focus on expanding its terrestrial and satellite networks efficiently.

Infrastructure Expansion and Upcoming Satellites

To strengthen its existing services and prepare for future D2D expansions, Globalstar has announced plans to launch 17 additional satellites. This move is part of a broader effort to:

• Improve satellite coverage and service reliability.
• Enhance emergency communication capabilities.
• Support potential partnerships with other device manufacturers and enterprises seeking D2D connectivity.

These satellite deployments ensure that Globalstar remains ahead of the curve in the satellite industry by continuously improving its service quality and network coverage.

D2D Expansion to Broadband: Evaluating the Concerns

Technical Challenges of Broadband D2D

The idea of expanding D2D services into broadband has been met with skepticism, and rightfully so. CEO Paul Jacobs has expressed caution regarding the feasibility of broadband D2D services, stating that while the technology is promising, it faces significant challenges:

• Higher data throughput requires more advanced satellite infrastructure.
• Battery limitations in mobile devices could impact the ability to sustain long-duration satellite broadband connections.
• Interference management and spectrum constraints must be addressed to ensure seamless connectivity.

While these challenges are real, it is crucial to understand that Globalstar is taking a measured approach, prioritizing incremental improvements rather than unrealistic leaps into broadband services.

Competitive Landscape and Market Positioning

Globalstar operates within a rapidly evolving satellite industry, where companies such as Starlink (SpaceX), AST SpaceMobile, and Lynk Global are pursuing their own D2D initiatives. However, Globalstar differentiates itself by focusing on licensed spectrum usage, regulatory approvals, and existing commercial partnerships.

• Unlike Starlink, which requires bulky ground infrastructure, Globalstar’s low-power satellite links make it an ideal partner for mobile manufacturers.
• AST SpaceMobile and Lynk Global are still in early-stage deployments, whereas Globalstar already has commercial services in place with Apple.
• Globalstar’s satellites operate at an altitude of 1,414 km, providing a unique blend of coverage efficiency and cost-effectiveness.

Rather than entering a race for broadband dominance, Globalstar is strategically positioning itself to maximize profitability in its niche market.

Industry Challenges and Strategic Responses

Managing Spectrum and Infrastructure Development

One of the primary concerns in the D2D market is spectrum allocation and infrastructure development. Globalstar is tackling these challenges through a methodical approach:

• Utilizing its licensed MSS spectrum, which allows it to operate without the uncertainty faced by newer players waiting for regulatory approvals.
• Investing in infrastructure upgrades that enhance signal stability and device compatibility.
• Collaborating with industry regulators to streamline spectrum use while avoiding interference issues.

Profitability and Financial Considerations

A crucial question for investors is whether Globalstar’s D2D model is financially sustainable. CEO Paul Jacobs has emphasized that broadband D2D services may not be profitable in the near term. Instead, Globalstar is:

• Prioritizing cash flow-positive ventures like emergency messaging and enterprise solutions.
• Seeking long-term revenue models by leveraging existing assets rather than embarking on costly, unproven expansions.
• Focusing on operational efficiency to ensure steady profit margins in the satellite communication sector.

These steps indicate that Globalstar is not rushing into unsustainable business models but instead refining its approach to maximize long-term shareholder value.

The Bigger Picture: Why D2D Concerns Shouldn’t Overshadow Globalstar’s Strengths

Existing Revenue Streams and Business Stability

Globalstar has several established revenue streams that support its financial stability:

1. Apple partnership for emergency messaging services.
2. Enterprise solutions for IoT and remote communication.
3. Satellite-based asset tracking and fleet management services.
4. Ongoing expansion into terrestrial network services.

These revenue sources offset short-term concerns about D2D broadband expansion and reinforce Globalstar’s fundamental business strength.

Investor Sentiment and Future Growth Potential

Investors should focus on Globalstar’s long-term growth strategy, which is based on:

• Continued regulatory backing and government partnerships.
• Steady infrastructure expansion that aligns with demand growth.
• Leveraging existing partnerships to scale services efficiently.

Globalstar is not simply chasing hype in the satellite industry—it is building a sustainable business model grounded in real-world applications and validated services.

Conclusion: Why Globalstar’s Core Business Matters More Than Speculative D2D Concerns

While discussions about broadband D2D expansion generate headlines, they should not overshadow Globalstar’s tangible achievements. The company’s validated emergency messaging services, strong regulatory standing, and strategic infrastructure investments make it a key player in the evolving satellite communication space.

Rather than focusing on speculative concerns about broadband D2D feasibility, investors and analysts should recognize Globalstar’s measured growth strategy. The company is taking a calculated approach to expansion, ensuring financial stability while leveraging existing market strengths.

As satellite connectivity continues to gain importance in global communication, Globalstar’s current business model and future innovations position it well for long-term success. D2D broadband concerns may persist, but they should not distract from the company’s real and sustainable progress in satellite communication.