Phoenix Rises In Satellite Communications

Signal, Apr 2004 by Lawlor, Maryann

The transformation of Globalstar is fundamentally changing the way the company operates. Primarily, it will now be in a position to control its own destiny and show true profits, Navarra says. The second substantial change will be that the firm will begin looking at other niche markets, which it could not do while in debt and dealing with bankruptcy. "There are major applications that the Globalstar mobile satellite service can provide to North America and the world now that it's an ongoing company, now that it's servicing its own operations. We hope to get to cash-flow breakeven maybe this fall, and that will allow us to go look at other markets that we can enter with other companies," Navarra says. Another objective is to expand its presence in the asset tracking and remote-control of assets arenas. Globalstar may be able to offer these services at a lower cost and with a larger coverage than capabilities offered by other firms or technologies, he notes.

In addition, Navarra says major opportunities are coming to light in terms of replacing current communications methods. For example, Globalstar equipment could be used to communicate and track taxicabs.

As a result of the reorganization and influx of cash, the company plans to expand not only technologically but also geographically. Navarra says all of the current services could be replicated in areas such as South America or other locations that do not currently have service. This work is already underway. In February, the company began engineering and development work aimed at providing enhanced service coverage and system capacity in the Caribbean and the southeastern regions of the United States. Improved service is expected to begin this month.

In conjunction with Thermo, Globalstar will make decisions about changing or expanding the company's product line. For instance, the firm could develop a docking port so customers could use their mobile telephones as their vacation-home telephones. Navarra believes that data-sharing capabilities will be a big growth area as well. In addition to improving data transmitting speeds, the company is working with another firm to offer an integrated compression solution. Customers will have a choice between purchasing compression technologies or investing in equipment that offers faster speeds.

The company will continue to build new products, Navarra says. However, another priority will be to pursue niche markets and to look into new market segments such as recreation, oil and gas distribution, maritime and areas of the government that it is not currently serving.

Additional information on Globalstar is available on the World Wide Web at www.globalstar.com.