What changed in this filing

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Item 1. Business

2023-03-01 compared with 2022-02-25 · 126 added, 97 removed, 240 unchanged (48% of the section changed)

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Globalstar, Inc.

(“we,” “us” or the “Company”) provides Mobile Satellite Services (“MSS”) including voice and data communications services globally via satellite.

(“we,” “us” or the “Company”) provides Mobile Satellite Services (“MSS”) including voice and data communications services in addition to wholesale capacity services through its global satellite network.

We offer these services over our network of in-orbit satellites and our active ground stations (“gateways”), which we refer to collectively as the Globalstar System.

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By providing wireless communications services across the globe, we meet our customers' increasing desire for connectivity.

Recent Developments

The COVID-19 pandemic has impacted and may continue to impact our business.

At the beginning of the pandemic, we experienced a reduction in the volume of sales of subscriber equipment, received requests for service pricing concessions from certain customers, and were impacted by certain of our customers not being able to pay outstanding balances.

During 2021, we saw a recovery in our business, specifically an increase in the volume of sales of IoT equipment and lower subscriber churn for SPOT and IoT.

We also pursued various opportunities to mitigate the risks and uncertainties resulting from COVID-19, including:

• Receiving economic relief and support under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, including the receipt of a $5.0 million loan under the Paycheck Protection Program (the "PPP Loan") and the deferral of certain payroll taxes,

• Electing pension relief under the American Rescue Plan Act,

• Evaluating our eligibility for the Employee Retention Tax Credit program,

• Refocusing internal resources on high-value opportunities, and

• Working with our product manufacturers to ensure we will continue to have sufficient inventory levels on hand to meet consumer demand.

In June 2021, the Small Business Association ("SBA") fully approved our request for forgiveness of all amounts outstanding, including interest, under the PPP Loan.

There are a number of uncertainties that could impact our future results of operations, including the effectiveness of COVID-19 mitigation measures;

the duration of the pandemic;

global economic conditions;

changes to our operations;

changes in consumer confidence, behaviors and spending;

work from home trends;

and the sustainability of supply chains.

Gateway Expansion

During 2021, we acquired the remaining ownership of our joint venture in South Korea and also took over the operations of our three gateways in Australia that were previously operated by an Independent Gateway Operator ("IGO").

We purchased assets, including gateway licenses, from these IGOs.

We commenced leases for additional gateways around the world and expect this expansion to continue during 2022.

We also made significant progress on our initiative to upgrade certain gateway equipment, including new antennas and appliques, to improve our ability to pursue significant new opportunities to deploy our network assets as technologies and customer needs evolve and to ensure our network performance continues to excel as these opportunities increase demand on our capacity.

Global Chip Shortage

The recent chip shortage has negatively impacted our manufacturing processes, including causing delays in and increased costs of sourcing certain component parts.

We have mitigated some of the impact of these shortages, but there continues to be uncertainties around our ability to produce equipment timely and at reasonable prices, which could negatively impact our revenue and profitability.

Business Strategy

Our competitive advantages are leveraged through a strategy that relies primarily on four pillars to drive increasing shareholder value:

wholesale satellite capacity, terrestrial spectrum, IoT and legacy services.

The four pillars are outlined below.

Wholesale Satellite Capacity

Wholesale satellite capacity services include satellite network access and related services using our satellite spectrum and network of satellites and gateways.

In September 2022, Apple Inc.

(“Partner”) announced new satellite-enabled services for certain of its products (the “Services”).

We are the satellite operator for the Services pursuant to the agreement (the “Service Agreement”) and certain related ancillary agreements (such agreements, together with the Service Agreement, as each is amended from time to time, the “Service Agreements”).

The Services constitute the service which was previously described and disclosed as the Terms Agreement.

Since execution of the Service Agreements in 2020 and prior to the commencement of the Services in 2022, the parties completed several milestones, including (i) a feasibility phase, (ii) material upgrades to our ground network, (iii) construction of 10 new gateways around the world, (iv) the successful launch of the ground spare satellite, and (v) rigorous in-field system

The Service Agreements generally require us to allocate network capacity to support the Services, and Partner to enable Band 53/n53 for use in cellular-enabled devices designated by Partner for use with the Services.

Partner made the Services available to its customers beginning in November 2022 (the “Service Launch”).

In consideration for the Services provided by us, Partner will make payments to us under the Service Agreements, such as a recurring service fee, payments relating to certain Service-related operating expenses and capital expenditures, including under the satellite procurement agreement with Macdonald, Dettwiler and Associates Corporation ("MDA" or, the "Vendor"), and potential bonus payments subject to satisfaction of certain licensing, service and related criteria.

In addition to the services provided under the Service Agreements, we intend to continue to develop wholesale customer opportunities over our retained satellite capacity (discussed below) for IoT and other initiatives.

We retain 15% of network capacity to support our existing and future Duplex, SPOT and IoT subscribers.

This capacity can support a substantial increase in our own subscriber base, particularly following recent and planned investments in our space and ground segments.

The retained satellite capacity can be used by us directly or through additional wholesale arrangements.

Terrestrial Spectrum

We have terrestrial licenses in 11 countries resulting in approximately 10.0 billion MHz-POPs (megahertz of our spectrum authority in each country multiplied by a total population of approximately 797 million over the covered area).

Prospective spectrum partners, including cable companies, legacy or upstart wireless carriers, system integrators, utilities and other infrastructure operators, all benefit from access to uniform and increasingly “borderless” spectrum working across geographies.

Our expanding portfolio of terrestrial spectrum represents a substantial opportunity for us.

Given our senior status as the incumbent operator in the Big LEO band, we believe that our valuable assets include our extensive portfolio of domestic and international licenses to access the globally harmonized spectrum that is essential to all of the services that we offer today and into the future.

The Service Agreements significantly enhance the device ecosystem for Band 53/n53.

Satellite IoT connectivity has become more critical to a growing number of sectors and use cases.

We plan to continue to evolve and develop our IoT initiatives.

In June 2022, we introduced the Realm Enablement Suite, an innovative portfolio of satellite asset tracking hardware and software solutions featuring a powerful application enablement platform for processing smart data at the edge, which improves processing time and reliability in remote locations.

With Realm, partners can accelerate new solutions to market with smart applications that generate an advanced level of telematics data.

The Realm Enablement Suite includes Integrity 150, the first solar-powered, deployment-ready satellite asset tracking device with an application enablement platform;

ST150M, a satellite modem module that drastically simplifies product development;

and the Realm application enablement platform, which will offer tools and an extensive library for quickly accessing and developing smart applications at the edge for vertical-specific solutions.

We also continue to expand deployments that support environmentally friendly initiatives, including remote monitoring of fluid levels and tanks, which replaces the need for motor vehicles to access these assets, as well as asset monitoring solutions for solar lighting and other renewable energy sources.

In 2023, we expect to introduce a two-way commercial IoT product which would significantly expand our opportunities in the IoT Market because this technology would have capabilities that include both tracking as well as command control.

Legacy Services

We remain committed to our legacy satellite business and serving our current subscriber base while offering future innovations in MSS.

Our existing Duplex and SPOT customers are expected to benefit from expanded capacity through additional ground infrastructure and satellites which improve service levels.

Communications Products and Services

We currently provide the following communications services:

• two-way voice communication and data transmissions via our GSP-1600 and GSP-1700 phone ("Duplex");

• one-way or two-way communication and data transmissions using mobile devices, including our SPOT family of products, such as SPOT X ® , SPOT Gen4 TM and SPOT Trace ® , that transmit messages and the location of the device ("SPOT");

• one-way data transmissions using a mobile or fixed device that transmits its location and other information to a central monitoring station, including our commercial IoT products, such as our battery- and solar-powered SmartOne, STX-3, ST100, ST-150 and Integrity 150 ("Commercial IoT");

• satellite network access and related services utilizing our satellite spectrum and network of satellites and gateways ("Wholesale Capacity Services");

• engineering and other communication services using our MSS and terrestrial spectrum licenses ("Engineering and Other").

We compete aggressively on price.

We offer a range of price-competitive products to the industrial, governmental and consumer markets.

We expect to retain our position as a cost-effective, high-quality leader in the MSS industry.

As technological advancements are made, we continue to explore opportunities to develop new products and provide new services over our network to meet the needs of our existing and prospective customers.

We have pursued and continue to pursue initiatives that we expect will expand our satellite communications business and even more intensively utilize our network assets.

These initiatives include evaluating our product and service offerings in light of the shift in demand across the MSS industry from full Duplex voice and data services to direct-to-handset and IoT-enabled devices.

Integrated with this assessment is the development of a two-way reference design module to expand our Commercial IoT offerings, which is among our other current initiatives.

In recent years, we have considered the value of maintaining our second-generation Duplex services in light of alternative uses for our capacity, including uses under the Service Agreements.

As previously disclosed, in September 2022, we abandoned our second-generation Duplex assets, including gateway property, prepaid licenses and royalties, and inventory.

We will continue to support first-generation Duplex services, including voice communications and data transmissions using our satellite phones and data modems.

Globalstar System

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Our constellation of Low Earth Orbit ("LEO") satellites includes second-generation satellites and certain first-generation satellites.

We also have one on-ground spare second-generation satellite that we plan to launch in the near future.

We designed our satellite network to maximize the probability that at least one satellite is visible from any point on the Earth's surface between the latitudes 70° north and 70° south.

We designed our satellite network so that at least one satellite is visible from any point on the Earth's surface between the latitudes 70° north and 70° south.

We designed our second-generation satellites to last twice as long in space, have 40% greater capacity and be built at a significantly lower cost compared to our first-generation satellites.

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GEO satellite signals must travel approximately 42,000 additional miles on average, which introduces considerable delay and signal degradation to GEO calls.

In February 2022, we entered into a satellite procurement agreement (the "Procurement Agreement") with Macdonald, Dettwiler and Associates Corporation (the "Vendor") pursuant to which we will acquire 17 satellites that will replenish our existing constellation and ensure long-term continuity of our mobile satellite services.

We are acquiring the satellites to provide continuous satellite services to the potential customer under the Terms Agreement (defined below), as well as services to our current and future customers.

In February 2022, we entered into a satellite procurement agreement with MDA pursuant to which we expect to acquire 17 satellites that will replenish our existing constellation and ensure long-term continuity of our mobile satellite services.

We are acquiring the satellites to provide continuous satellite services to Partner under the Service Agreements, as well as services to our current and future customers.

We have committed to purchase these new satellites for a total contract price of $327.0 million and have the option to purchase additional satellites at a lower per unit cost, subject to certain conditions.

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Rocket Lab USA, Inc.

is the Vendor’s satellite bus subcontractor under the Procurement Agreement.

The agreement requires the Vendor to deliver the initial 17 new satellites by 2025, all of which are expected to be launched by the end of 2025.

Under the Terms Agreement, the counterparty is required to reimburse 95 % of the capital expenditures and certain other costs incurred for the new satellites.

is the Vendor’s satellite bus subcontractor.

The satellite procurement agreement requires the Vendor to deliver 17 new satellites by 2025, all of which are expected to be launched by the end of 2025.

Under the Service Agreements, subject to certain terms and conditions, Partner has agreed to make service payments equal to 95% of the approved capital expenditures under the satellite procurement agreement (to be paid on a straight-line basis over the useful life of the satellites) and certain other costs incurred for the new satellites, as adjusted based on certain provisions, beginning with the Phase 2 Service Period.

In June 2022, we successfully launched our on-ground spare second-generation satellite.

This satellite is expected to remain as an in-orbit spare and will only be raised to its operational orbit at a future date if needed.

Ground Network

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Once a satellite acquires a signal from an end-user, the Globalstar System authenticates the user and establishes the voice or data channel to complete the call to the public switched telephone network (“PSTN”), a cellular or another wireless network or the internet for data communications including Commercial IoT.

Over the past few years, we have procured and installed new antennas at all of our new and existing gateways around the world.

Over the past few years, we have procured and installed new antennas at our new and existing gateways around the world.

We believe that our network's design enables faster and more cost-effective system maintenance and upgrades because the system's software and much of its hardware are located on the ground.

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In addition, we have developed a proprietary technology for our SPOT and Commercial IoT services.

Communications Products and Services

We currently provide the following communications services:

• two-way voice communication and data transmissions via our GSP-1600 and GSP-1700 phone ("Duplex");

• engineering services to assist certain customers (including our customer under the Terms Agreement (defined below)) in developing new applications to operate on our network, enhancements to our ground network and other communication services using our MSS and terrestrial spectrum licenses ("Engineering and Other").

We compete aggressively on price.

We offer a range of price-competitive products to the industrial, governmental and consumer markets.

We expect to retain our position as a cost-effective, high-quality leader in the MSS industry.

We are currently pursuing initiatives that we expect will expand our satellite communications business and more effectively utilize the capacity of our network assets.

These initiatives include evaluating our product and service offerings in light of the shift in demand across the MSS industry from full Duplex voice and data services to IoT-enabled devices.

To align our business model with this evolution, we have temporarily ceased sales of and services to subscribers for certain Duplex devices, such as Sat-Fi2®.

We are currently evaluating opportunities for these devices relative to other product and service offerings as well as the capacity required to support these devices relative to other possible uses for the capacity.

Integrated with this assessment is the development of a two-way reference design module to expand our Commercial IoT offerings, which is among our other current initiatives.

Our Commercial IoT use cases continue to expand, including deployments that support environmentally friendly initiatives.

Recent deployments include remote monitoring of fluid levels and tanks, which replaces the need for motor vehicles to access these assets, as well as asset monitoring solutions for solar lighting and other renewable energy sources.

The specialized needs of our global customers span many industries.

Throughout the past few years, we have commenced leases for additional gateways around the world.

For our subscriber driven revenue, the specialized needs of our global customers span many industries.

As of December 31, 2022, we had approximately 769,000 subscribers worldwide, principally within the following markets:

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and transportation.

In response to Russia's invasion of Ukraine, during the first quarter of 2022, we disconnected satellite services to gateways in Russia that were operated by an independent gateway operator.

Accordingly, approximately 25,000 subscribers that previously received satellite services through these gateways were removed from our subscriber count.

Our subscriber count does not include our Partner's subscribers.

Our system is able to offer our customers cost-effective communications solutions completely independent of cellular coverage.

Although traditional users of wireless telephony and broadband data services have access to these services in developed locations, our customers often operate, travel or live in remote regions or regions with under-developed telecommunications infrastructure where these services are not readily available or are not provided on a reliable basis.

Although traditional users of wireless telephony and broadband data services have access to these services in developed locations, our customers often operate, travel and/or live in remote regions or regions with under-developed telecommunications infrastructure where these services are not readily available or are not provided on a reliable basis.

Our top revenue-generating markets in the United States and Canada are government (including federal, state and local agencies), public safety and disaster relief, oil and gas, recreation and personal telecommunications.

In recent years, the portion of our customers using Commercial IoT devices has increased significantly.

No one customer was responsible for more than 10% of our revenue in 2021, 2020 or 2019.

In recent years, the number of Commercial IoT devices on our network has increased significantly.

In addition to our subscribers, we also provide services to our Partner under the Service Agreements as discussed above in the Wholesale Capacity Services section.

Our FCC license allows us to provide service over our network to up to 250 million users in the United States.

Our subscriber count does not include our Partner's subscribers.

For the year ended December 31, 2022, our Partner under the Service Agreements was responsible for 24% of our revenue with no other customer responsible for more than 10% of our revenue.

For the years ended December 31, 2021 and 2020, no one customer was responsible for more than 10% of our revenue.

The loss of a large customer, such as our Partner under the Service Agreements, could have an adverse impact to our financial condition, results of operations and cash flows.

Duplex Two-Way Voice and Data Products

Mobile Voice and Data Satellite Communications Services and Equipment

We provide mobile voice and data services to a wide variety of commercial, government and individual customers for remote business continuity, recreational usage, safety, emergency preparedness and response and other applications.

We provide mobile voice and data services to a variety of commercial, government and individual customers for remote business continuity, recreational usage, safety, emergency preparedness and response and other applications.

We offer our services for use only with equipment designed to work on our network.

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We regularly monitor our service offerings and rate plans in accordance with customer demands and market changes and offer pricing plans such as bundled minutes, annual plans and unlimited plans.

We offer the GSP-1600 and GSP-1700 phones.

Although we no longer manufacture the GSP-1600 and GSP-1700 phones, we continue to support services for these devices.

Both phones include Qualcomm Incorporated's ("Qualcomm") patented CDMA technology, which we believe provides superior voice quality when compared to competitors' handsets.

The GSP-1700 phone includes a user-friendly color LCD screen and a variety of accessories.

We believe that the GSP-1700 is among the smallest, lightest and least-expensive satellite phones.

We no longer manufacture the GSP-1600 and GSP-1700 phones.

The majority of our phone sales are refurbished and are generally obtained through a buyback program that we have in place to purchase devices from deactivated subscribers, or subscribers that have upgraded to other devices.

Product Distribution

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SPOT Consumer Retail Products

The SPOT product family has initiated approximately 8,200 rescues since its launch in 2007.

The SPOT product family has been used to initiate over 9,000 rescues since its launch in 2007.

SPOT delivers affordable and reliable satellite-based connectivity and real-time GPS tracking to hundreds of thousands of users, completely independent of cellular coverage.

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We distribute and sell our SPOT products through a variety of distribution channels.

We have distribution relationships with a number of "Big Box" retailers and other similar distribution channels, including Amazon, Bass Pro Shops, Cabela's, Camping World, Gander Outdoors, REI, Sportsman's Warehouse, Academy, and West Marine.

We have distribution relationships with a number of "Big Box" retailers and other similar distribution channels, including Amazon, Bass Pro Shops, Cabela's, Camping World, REI, Sportsman's Warehouse, Academy and West Marine.

We also sell SPOT products and services directly using our existing sales force and through our direct e-commerce website, www.findmespot.com.

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The small size of the IoT devices makes them attractive for use in tracking asset shipments, monitoring unattended remote assets, trailer tracking and mobile security.

Current users include various governmental agencies, including the Federal Emergency Management Agency (“FEMA”), the U.S.

Army, the U.S.

Air Force, the National Oceanic and Atmospheric Administration (“NOAA”), the U.S.

Forest Service and the U.K.

Ministry of Defence, as well as other organizations, including BP, Shell and The Salvation Army.

We provide Commercial IoT services to customers operating in a variety of industries, including primarily government, transportation, construction, agriculture and forestry.

Current users include various governmental agencies, such as the Federal Emergency Management Agency, U.S.

Air Force, National Oceanic and Atmospheric Administration, U.S.

Forest Service and U.K.

Ministry of Defence, as well as other organizations, such as BP, Shell and The Salvation Army.

We designed our Commercial IoT service to address demand in the market for a small and cost-effective solution for sending data, such as geographic coordinates, from assets or individuals in remote locations to a central monitoring station.

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Satellite Transmitter Modules and Chips

We offer small satellite transmitter modules, such as the STX-3 and ST100, and chips, such as our proprietary ASIC, which enable an integrator’s products to access our network.

We offer small satellite transmitter modules, such as the STX-3, ST-150 and ST100, and chips, such as our proprietary ASIC, which enable an integrator’s products to access our network.

We have sales arrangements with major resellers to market our IoT services, including some value-added resellers that integrate our modules into their proprietary solutions designed to meet certain specialized niche market applications.

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For more advanced technical requirements, third parties can write their own firmware on the ST100 and utilize Bluetooth® wireless technology and the serial connector to expand the use of the board and integrate it with other devices or hardware.

The ASIC provides a single chip one-way solution that can be embedded in a customer's owns solution.

The ASIC provides a single chip one-way solution that can be embedded in a customer's own solution.

SmartOne Asset Managers

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The SmartOne Solar™ also has unparalleled safety and environmental certifications including ATEX, IECEx, North America (NEC & CEC), IP68/69K, and HERO.

Realm Enablement Suite

The Realm Enablement Suite is an innovative portfolio of satellite asset tracking hardware and software solutions featuring a powerful application enablement platform for processing smart data at the edge.

With Realm, partners can accelerate new solutions to market with smart applications that generate an advanced level of telematics data.

The Realm Enablement Suite includes Integrity 150, the first solar-powered, deployment-ready satellite asset tracking device with an application enablement platform;

ST150M, a satellite modem module that drastically simplifies product development;

and the Realm application enablement platform, which will offer tools and an extensive library for quickly accessing and developing smart applications at the edge for vertical-specific solutions.

Future Developments

We have other initiatives to expand our Commercial IoT offerings, including the development of our enablement suite and a two-way reference design module.

The enablement suite represents a new approach to the architecture and software design for our future products.

It is based on Bluetooth ® Low Energy ("BLE") technology for most module communication and has a software stack that exposes a unified API.

This approach gives application developers flexibility in developing edge platform applications aimed at custom IoT solutions.

Markets for edge platform applications include alternative energy, agriculture, industrial monitoring and traditional markets such as oil and gas.

We have other initiatives underway to expand our Commercial IoT offerings, including the development of a two-way reference design module, which we expect will complete our lineup of competitive product offerings.

Operating on our Realm Enablement Suite, the two-way module and finished product will provide the fundamentals to effectively pursue sales opportunities with carriers, enterprises, large resellers, system integrators, and any party looking to extend their business models with satellite connectivity.

Product Distribution

The reseller channel for Commercial IoT equipment and service is comprised primarily of value-added resellers and commercial communications equipment companies that retain and bill clients directly, outside of our billing system.

our resellers specialize in niche vertical markets where high-use customers are concentrated.

Many of our resellers specialize in niche vertical markets where high-use customers are concentrated.

We expect that demand for our Commercial IoT products and services will increase as more applications are developed and deployed that utilize our technology.

Wholesale Capacity Services

Wholesale satellite capacity services include satellite network access and related services using our satellite spectrum and network of satellites and gateways.

Engineering and Other

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These services include hardware and software designs to develop specific applications operating over our network, as well as the installation of gateways and antennas.

In February 2020, we entered into an agreement (i) providing for a customer to pay us for non-recurring engineering (NRE) services in connection with the assessment of a potential service utilizing certain of our assets and capacity, and (ii) setting forth the primary terms for the potential development and operation of the service (the “Terms Agreement”).

The Terms Agreement includes certain binding protective provisions, including an exclusivity provision not affecting current services, access rights related to the affected assets, certain information rights and certain provisions for future financings.

The Terms Agreement may be terminated by the customer at any time in its sole discretion.

Spectrum and Regulatory Structure

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During 2020, our French authorizations to provide MSS and operate the gateway in Aussaguel, France were renewed for an additional 10-year term.

We have also filed applications in both Germany and France to operate a substantially larger satellite constellation than we have today;

these applications have been accepted by the ITU and have an established date.

Terrestrial Authority for Globalstar's Licensed 2.4 GHz Spectrum

In December 2016, the FCC unanimously adopted a Report and Order permitting us to seek modification of our existing MSS licenses to provide terrestrial broadband services over 11.5 MHz of our licensed Mobile Satellite Services spectrum at 2483.5 to 2495 MHz throughout the United States of America and its Territories.

In August 2017, the FCC modified Globalstar's MSS licenses, granting us authority to provide terrestrial broadband services over that 11.5 MHz portion of our satellite spectrum.

In August 2017, the FCC modified Globalstar's MSS licenses, granting us authority to provide terrestrial broadband services over the 11.5 MHz portion of our licensed MSS spectrum.

Specifically, the FCC modified our space station authorization and our blanket mobile earth station license to permit a terrestrial network using 11.5 MHz of our licensed mobile-satellite service spectrum.

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Additional follow-on 3GPP specifications and approvals are expected in the future.

During 2019, we executed a spectrum managers lease with Nokia in order to permit Nokia to utilize Band 53 within its equipment domestically and have such equipment type-certified for sale and deployment.

During 2019, we executed a spectrum manager lease agreement with Nokia in order to permit Nokia to utilize Band 53 within its equipment domestically and have such equipment type-certified for sale and deployment.

In February 2021, Qualcomm Technologies announced its new Snapdragon X65 modem-RF System, which includes support for Band n53.

By having global 5G band support for n53 in Qualcomm Technologies’ 5G solutions, our potential device ecosystem expands significantly to include the most popular smartphones, laptops, tablets, automated equipment and other IoT modules.

In September 2022, we announced the Service Agreements, which require Partner to enable Band 53/n53 for use in cellular-enabled devices designated by Partner for use with the Services, subject to certain terms and conditions;

we believe this inclusion significantly enhances the device ecosystem for Band 53/n53.

We believe our MSS spectrum position provides potential for harmonized terrestrial authority across many international regulatory domains and have been seeking approvals in various international jurisdictions.

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MSS operators provide voice and data services using a network of one or more satellites and associated ground facilities.

Mobile satellite services are usually complementary to, and interconnected with, other forms of terrestrial communications services and infrastructure and are intended to allow for connectivity at all times and locations.

Mobile satellite services are usually complementary to other forms of terrestrial communications services and infrastructure and are intended to allow for connectivity beyond the reach of cellular.

Customers typically use satellite voice and data communications in situations where existing terrestrial wireline and wireless communications networks are impaired or do not exist.

Worldwide, government organizations, military, natural disaster aid associations, event-driven response agencies and corporate security teams depend on mobile and fixed voice and data communications services on a regular basis.

Businesses with global operations require communications services when operating in remote locations around the world.

Government organizations, military, natural disaster aid associations, event-driven response agencies and corporate security teams across the world depend on mobile and fixed voice and data communications services on a regular basis.

Businesses with global operations require communications services when operating in remote locations.

MSS users span the forestry, maritime, government, oil and gas, mining, leisure, emergency services, construction and transportation sectors, among others.

Over the past two decades, the global MSS market has experienced significant growth.

Increasingly, better-tailored, improved technology products and services are creating new channels of demand for mobile satellite services.

Increasingly, better-tailored, improved technology products and services are creating new channels of demand.

Growth in demand for mobile satellite services is driven by the declining cost of these services, the diminishing size and lower cost of the devices, as well as heightened demand by governments, businesses and individuals for ubiquitous global voice and data coverage.

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• terrestrial services, which use a terrestrial network to provide wireless or wireline connectivity and are complementary to satellite services.

Additionally, the emergence of satellite to cellular technology has brought with it an increased number of satellite providers working in collaboration with mobile providers to extend smart phone messaging capability.

Within the major satellite sectors, fixed and MSS operators differ significantly from each other.

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As more and more devices are connected wirelessly and as their applications increase in bandwidth intensity, more terrestrial spectrum is required.

In the United States, there are a number of other current licensed spectrum providers, including Anterix, Nextwave, Terrastar, Ligado and as well as various other licensed spectrum holders.

We also provide an alternative to unlicensed spectrum used with WiFi or lightly licensed spectrum like CBRS.

In the United States, there are a number of other current licensed spectrum providers, including Anterix, Nextwave and Terrastar as well as various other licensed spectrum holders.

We also provide an alternative to unlicensed spectrum used with Wi-Fi or lightly licensed spectrum like CBRS.

Each spectrum band is unique due to its propagation or ecosystem development;

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Iridium owns and operates a fleet of low earth orbit satellites.

Iridium provides voice and data communications to businesses, United States and foreign governments, non-governmental organizations and consumers.

Iridium provides voice and data communications to businesses, the United States government as well as foreign governments, non-governmental organizations and consumers.

Iridium markets products and services that are similar to those marketed by us.

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We compete with regional mobile satellite communications services in several markets.

In these cases, our competitors serve customers who require regional, not global, mobile voice and data services, so our competitors present a viable alternative to our services.

In these cases, our competitors serve customers who require regional, not global, mobile voice and data services, so our competitors present a viable alternative to our services in certain markets.

All of these competitors operate geostationary satellites.

Our principal regional MSS competitor in the Middle East and Africa is Thuraya.

Our direct to device service also faces competition from newly announced service providers, including SpaceX, Iridium and a number of new market entrants.

While our service is currently the most robust service providing satellite capabilities to smartphones, other satellite service providers are expected to provide similar satellite services in the near-term to competitive smartphone devices.

In some of our markets, such as rural telephony, we compete directly or indirectly with very small aperture terminal (“VSAT”) operators that offer communications services through private networks using very small aperture terminals or hybrid systems to target business users.

VSAT operators have become increasingly competitive due to technological advances that have resulted in smaller, more flexible and cheaper terminals.

VSAT operators have become increasingly competitive due to technological advances that have resulted in smaller, more flexible and less expensive terminals.

We compete indirectly with terrestrial wireline (“landline”) and wireless communications networks.

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To the extent that terrestrial communications companies invest in underdeveloped areas, we will face increased competition in those areas.

Our SPOT products compete indirectly with Personal Locator Beacons (“PLB”s).

Our SPOT products compete indirectly with Personal Locator Beacons (“PLBs”).

A variety of manufacturers offer PLBs to industry specifications.

Our industry has significant barriers to entry, including the cost and difficulty associated with obtaining spectrum licenses and successfully building and launching a satellite network.

Our industry has significant barriers to entry, including the cost and difficulty associated with obtaining spectrum licenses and successfully building and launching a satellite and ground network.

In addition to cost, there is a significant amount of lead-time associated with obtaining the required licenses, designing and building the satellite constellation and synchronizing the network technology.

For terrestrial spectrum opportunities, our primary competition is unlicensed spectrum and, to a lesser extent, lightly licensed CBRS.

For terrestrial spectrum opportunities, our primary competition is other licensed and unlicensed spectrum alternatives and, to a lesser extent, lightly licensed bands.

Anterix, a licensed spectrum holder, is also a successful competitor for use cases that require low data over longer distances.

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We continue to maintain all of the patents in the United States, Canada and Europe that we believe are important to our business.

Our intellectual property is pledged as security for our obligations under our $199.0 million facility agreement we entered into in 2019 (the "2019 Facility Agreement").

Our intellectual property is pledged as security for our obligations under our credit facility agreement we entered into in 2019 (the "2019 Facility Agreement").

Human Capital

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Employee engagement is also important for us, and includes an interactive wellness program, corporate communications and employee surveys.

Our commitment to diversity and inclusion is part of our worldwide culture, which our employees confirmed in our most recent employee survey with "Diversity and Inclusion" continues as one of the highest rated culture categories.

Our commitment to diversity and inclusion is part of our worldwide culture, which our employees confirmed in our most recent employee survey as "Diversity and Inclusion" continues to be one of the highest rated culture categories.

In response to COVID-19 mitigation measures, we remain focused on the health and safety of our employees.

We continue to encourage remote working arrangements and accommodate flexible work schedules, as needed.

We continue to support hybrid working arrangements and accommodate flexible work schedules, as needed.

Usage on the network and, to some extent, sales are subject to seasonal and situational changes.

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We also sell the related voice and data equipment to our customers, which accounted for approximately 11%, 15% and 12% of our total revenues for 2022, 2021, and 2020, respectively.

Global Chip Shortage

In recent years, the global chip shortage has negatively impacted our manufacturing processes, including causing delays in and increased costs of sourcing certain component parts.

We have mitigated some of the impact of these shortages through strategic changes in our manufacturing process and supply chain.

Additional Information

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business