Globalstar, Inc. announced that the second of six satellites launched in July is now operational and processing mobile satellite voice and data call traffic to customers in North America and around the world. The deployment of these six satellites from the second launch is on schedule. The first two launches were successfully conducted in October of 2010 and July of 2011. Globalstar is currently planning to launch six additional satellites in December.
The first satellite from the July launch was placed into service in August and the four remaining satellites are expected to become operational over the next few months. The new second-generation satellites are designed to support Globalstar‘s current lineup of voice, Duplex and Simplex data products and services including the Company’s SPOT retail consumer products. As each new Globalstar satellite becomes operational, service availability and reliability improvements will benefit those customers who use the Company’s voice and Duplex data services. With each subsequent launch, these customers can expect a progressive return to high quality coverage and call completion reliability. Globalstar is currently deploying its second-generation satellite constellation and launch services provider Arianespace has been contracted to conduct launches of six satellites each.
Globalstar, Inc., a leading provider of mobile satellite voice and data services to businesses, government and consumers, today announced that it has placed an order with Thales Alenia Space for an additional six satellites. This is in addition to the 25 satellites already ordered under the 2006 second-generation constellation contract.
According to the terms of the contract these satellites will cost approximately EUR 55 million and should be delivered by mid-2013. The fast track delivery, agreed upon when the contract was signed in 2006, is due to the fact that Globalstar has previously purchased EUR 12 million in long lead items that facilitate the prompt manufacture of these six spacecraft. Additionally, the incremental purchase amount is particularly price competitive due to the fact that Globalstar has already prepaid over EUR 53 million as part of its 2009 COFACE financing. Thus, combined with the EUR 12 million long lead items, Thales has already received approximately EUR 65 million for these satellites. Further payments will not be made until Thales Alenia Space initiates the manufacturing process.
“Notwithstanding the previously announced arbitration proceedings, we look forward to receipt of these satellites for our second-generation constellation,” said Jay Monroe, Executive Chairman and CEO of Globalstar, Inc. “This is a complicated project and we value Thales’s ability to deliver on time and on budget.”