Globalstar Seeks Rulemaking to Use Spectrum for Terrestrial Service

Globalstar is looking for relief that is similar to what was proposed in Dish’s notice of proposed rulemaking, Ponder said. The company is seeking “new service rules that would permit Globalstar to employ its spectrum for any terrestrial use permitted under the FCC’s rules,” he said. If Globalstar’s effort is approved, the mobile satellite services company may enter into a joint venture involving a lease of the spectrum, he said. It would likely be an arrangement where Globalstar “maintains the ability to coordinate the terrestrial use of its spectrum with its MSS services so that any possibility of interference is minimized,” he said.

Any effort by an MSS company to seek ancillary terrestrial component (ATC) authority can be hindered by the regulatory process, said Brad Grady, a Northern Sky Research analyst who covers the MSS market. “The wheels of government turn slowly and it’s a lot slower than I think a lot of these companies either anticipated, expected or are happy with.” It hasn’t been a technology issue that’s been restraining the market because the technology exists, he said. “It’s really been, from the government side, a real hard time to get the correct licensing and approval."

The industry will likely look toward the outcome of Dish’s proceeding and LightSquared’s push to have its stalled terrestrial network move forward as a roadmap, Grady said. “But I don’t know if there’s going to be a big move within the industry to offer these sorts of services just because the regulatory headache and the long time frame are really a restraint to offering these types of services.”

Inmarsat and Iridium are open to expanding their operations for terrestrial services, they said. Iridium is different from other satellite operators “whose entire business model is to take advantage of this opportunity and sell or lease their spectrum to others,” a spokeswoman said in an email. “We would only pursue this if it creates upside potential for us, and we're all about service delivery and growth to our diverse markets.” The European Union is interested in the possibility of a hybrid network, said Rupert Pearce, Inmarsat CEO. Inmarsat “is waiting to see how ATC works in the U.S.,” he said in an interview.

The success of a hybrid solution depends on the market, said Grady. There really is a very small market opportunity for a true hybrid solution, he said. There have been devices, like satellite phones, targeted to the market, “but they've fizzled out because they haven’t become competitive,” he said. The handsets are expensive and “they haven’t been able to make a smartphone and satellite phone combo that’s able to capture the mass market,” he added. Grady also said that the pace of terrestrial network deployment from wireless companies is increasing with further reach into remote areas.

Globalstar sees a chance to deliver services in metropolitan areas and maintain its service in remote areas, Ponder said. “In these dense metropolitan areas, there’s no demand for our satellite-based communication services, yet we still are licensed to use our spectrum there.” The company is proposing flexibility so it can provide a service in those areas and utilize public spectrum “with minimized or no interference with Globalstar’s MSS services, which are needed in the rural areas,” he said.

The company will request a rulemaking rather than a waiver proceeding, Ponder said. “We need the certainty that a rulemaking would provide and the rule changes that would allow our ability to ultimately provide a terrestrial service.” Ponder said he has been meeting with the FCC and expects the commission to begin a proceeding on Globalstar’s spectrum by the end of the year.