Globalstar Focusing on International Regulatory Approval of LTE Plans
Having received FCC approval for its revised low-power mobile broadband plans (see 1612230060), a chief Globalstar focus now is getting similar regulatory approval in other countries, with the aim of creating a global LTE band at 2.4 GHz. Going for similar approval, rather than pursuing its original plans that combined licensed and unlicensed spectrum, represents probably the lowest-risk, high-speed outcome, Chairman-CEO Jay Monroe said in a call with analysts Friday. "We have fewer conflicts doing that.”
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Monroe said the company has begun talks with regulators in a number of unspecified nations and expects to begin making filings there "in the next quarter or so." Such approvals should come much faster than the FCC proceeding since that was “blazing new ground," Monroe said, saying agency approval should help smooth the path to international approvals.
The international potential of Globalstar's 11.5 MHz in the 2.4 GHz band is one of its key strengths as the company aims to use it for high-density dedicated small cell deployments, said John Dooley, managing director at Globalstar consultant Jarvinian Ventures. He said a wireless industry frustration has been a lack of bands harmonized globally, with the 11.5 MHz being perhaps the first that would be both harmonized globally and -- thanks to Globalstar's worldwide satellite network -- commanded by a single entity.
Much of the call involved Globalstar's case for the potential of the spectrum, such as its physical characteristics and its compatibility with existing chipset architectures. The spectrum in the 2.4 GHz band used for small cell density is "grossly overpopulated and polluted" with other traffic, while the Globalstar spectrum has the same propagation characteristics but "is a very pristine resource," Dooley said. He said the FCC putting no buildout requirements on its approval makes the 11.5 MHz well suited for being dedicated solely to small cell deployment.
How to commercialize the spectrum -- such as through leases, building and leasing capacity, or selling the spectrum outright -- "are questions we are thinking about every day," Monroe said. "It's difficult to imagine a true go-it-alone strategy" due to the company's size and finances, he said. He said due to the holiday, the company hasn't had "significant conversations" with third parties since the FCC approval, but there are numerous ones that could end up being partners on spectrum deployment, including some that had previously been opponents of Globalstar's plans. He said on-and-off talks with potential partners previously took place but never went anywhere pending the outcome of the FCC proceeding.
Globalstar revised its terrestrial low-power services plans after conversations with technology companies and potential partners about maximizing the use of the 11.5 MHz spectrum, Monroe said. Dooley said Globalstar's licensed/unlicensed spectrum plans, when put to the FCC in 2012, reflected the available technology of the time. Improved transceiver technology since then allowed using just the 11.5 MHz, he said.
The FCC order deferred action on the company's rulemaking request about deployment of high-power terrestrial service in the L- and S-bands, saying it would be addressed separately. Monroe said the company's focus will be on its plans for the 11.5 MHz spectrum. "I wouldn't expect any activity [on the high-power LTE] in the near term," he said.