What changed in this filing

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Item 1. Business

2024-02-29 compared with 2023-03-01 · 98 added, 123 removed, 243 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 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.

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

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

In addition to supporting Internet of Things ("IoT") data transmissions in a variety of applications, we provide reliable connectivity in areas not served or underserved by terrestrial wireless and wireline networks and in circumstances where terrestrial networks are not operational due to natural or man-made disasters.

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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.

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

The four pillars are outlined below.

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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 are the operator for certain satellite-enabled services offered by Apple Inc.

("Partner") (the “Services”) pursuant to the agreement (the “Service Agreement”) and certain related ancillary agreements (such agreements, together with the Service Agreement, the “Service Agreements”).

The Service Agreements generally require us to allocate network capacity to support the Services, which launched in November 2022, and Partner to enable Band 53/n53 for use in cellular-enabled devices designated by Partner for use with the Services.

As consideration for the Services provided by us, payments to us include a recurring service fee, payments relating to

certain Service-related operating expenses and capital expenditures, and potential bonus payments subject to satisfaction of certain licensing, service and related criteria.

In addition to the Services, 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.

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

Terrestrial Spectrum

Terrestrial Spectrum and Network Solutions

We have terrestrial licenses in 11 countries resulting in approximately 10.2 billion MHz-POPs (megahertz of our spectrum authority in each country multiplied by a total population of approximately 814 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.

Prospective spectrum partners, including cable companies, 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.

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

In August 2023, we entered into an Intellectual Property License Agreement (the “License Agreement”) with XCOM Labs, Inc.

(“Licensor” or “XCOM”).

Under the License Agreement, we purchased an exclusive right and license (the “License”) as well as certain Intellectual Property Assets (as defined in the License Agreement) relating to the development and commercialization of XCOM’s key novel technologies for wireless spectrum innovations, including XCOM Radio Access Network ("XCOM RAN") systems, XCOM’s commercially available coordinated multi-point radio system.

XCOM RAN systems deliver substantial capacity gains in dense, complex, challenging wireless environments in sub 7 GHz spectrum.

We also gained exclusive access to XCOM’s peer-to-peer connectivity technologies that could have applications across cellular and satellite devices.

As part of the License Agreement, certain XCOM employees, including engineering, test, product and R&D professionals, who helped develop the licensed technologies, will continue to further commercialize the technology on behalf of Globalstar.

Bringing together Globalstar’s terrestrial spectrum and relationships with leading partners around the world with XCOM’s differentiated technology, which we believe is well suited for high-performance applications, creates a significant opportunity to deliver for private network customers with mission-critical needs.

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.

In 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.

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;

ST150M, a satellite modem module that 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.

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

We are currently developing two-way commercial IoT products 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

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• 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.

• engineering and other communication services using the Globalstar System ("Engineering and Other").

We compete aggressively on price and strive for differentiation in the solutions that we offer to our customers.

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

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

These initiatives are focused in part on further investment and development of IoT-enabled devices, including a two-way reference design module, as well as additional wholesale products and services.

We expect to significantly expand our Commercial IoT offerings and terrestrial network solutions leveraging our XCOM RAN product and terrestrial spectrum authorizations.

Globalstar System

Satellite Network

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

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.

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

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 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.

We also have an in-orbit spare satellite available to raise to operational orbit if it becomes necessary.

Our goal is to provide service levels and call or message success rates equal to or better than our MSS competitors so our products and services are attractive to potential customers.

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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 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.

The technical specifications and design of these new satellites are similar to our current second-generation satellites.

Rocket Lab USA, Inc.

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.

In 2022, we entered into a satellite procurement agreement with Macdonald, Dettwiler and Associates Corporation ("MDA") pursuant to which we expect to acquire at least 17 and up to 26 satellites.

We have filed an application with the Federal Communications Commission (the "FCC") to replenish our HIBLEO-4 U.S.-licensed system with these satellites and operate them under an additional fifteen-year license term to provide long-term continuity of our MSS.

The technical specifications and design of these replacement satellites are similar to our current satellites.

The satellite procurement agreement requires delivery of the 17 new satellites by 2025.

In 2023, we entered into a Launch Services Agreement with Space Exploration Technologies Corp.

(“SpaceX”) and certain related ancillary agreements (the “Launch Services Agreements”), providing for the launch of the first set of these satellites.

The Launch Services Agreements provide a launch window from April to September 2025.

Under the Service Agreements, subject to certain terms and conditions, we will receive payments equal to 95% of the approved capital expenditures under the satellite procurement agreement and Launch Services Agreements (to be paid on a straight-line basis over the useful life of the satellites) beginning with the Phase 2 Service Period (the "Approved Capital Expenditure Payments").

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 our new and existing gateways around the world.

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

Our multiple gateways allow us to reconfigure our system quickly to extend another gateway's coverage to make up for lost coverage from a disabled gateway or to handle increased call capacity resulting from surges in demand.

Our ground network includes our ground equipment, which uses patented CDMA technology to permit communication to multiple satellites.

Our ground network includes our ground equipment, which uses technology permitting communication to multiple satellites.

Our system architecture provides full frequency re-use.

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

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

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.

Throughout the past few years, we have built additional gateways around the world, 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.

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

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maritime and fishing;

natural resources, mining and forestry;

construction;

natural resources;

animal tracking;

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 subscriber count only includes our MSS 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 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 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.

In recent years, the number of Commercial IoT devices on our network has increased significantly, driven by a 16% and 8%, respective, increase in volume of equipment sold during the years ended December 31, 2023 and 2022.

In addition to our subscribers, we also provide services to other customers, such as under the Service Agreements.

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

For the year ended December 31, 2023 and 2022, our wholesale capacity customer under the Service Agreements was responsible for 49% and 24%, respectively, of our revenue;

no other customer was responsible for more than 10% of our revenue.

For the year ended December 31, 2021, no single customer was responsible for more than 10% of our revenue.

The loss of a large customer, such as our wholesale capacity customer 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

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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.

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.

Product Distribution

Our sales group is responsible for conducting direct sales with key accounts and for managing partner relationships.

Customers also place orders through our existing sales force and through our direct e-commerce website.

SPOT Consumer Retail Products

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.

We differentiate ourselves from other MSS providers by offering affordable, high-utility mobile satellite products that appeal to both businesses and the mainstream consumer market.

We believe that we are the only vertically-integrated mobile satellite company.

Our vertical integration results in decreased pre-production costs, greater quality assurance and shorter time to market for our retail consumer products.

The SPOT product family has been used to initiate thousands of rescues since its launch in 2007.

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

We currently sell SPOT Gen4 TM , SPOT X ® and SPOT Trace ® .

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SPOT products and services are available through our product distribution channels and our direct e-commerce website.

We are a vertically-integrated mobile satellite company and this integration results in decreased pre-production costs, greater quality assurance and shorter time to market for our retail consumer products.

Product Distribution

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, 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, 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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Commercial IoT service is currently a one-way data service from an IoT device over the Globalstar System that can be used to track and monitor assets.

Our subscribers use our Commercial IoT devices for a host of applications:

to track assets, such as cargo containers and rail cars;

to monitor utility meters;

and to monitor oil and gas assets.

Our subscribers use our Commercial IoT devices for a host of applications, including to track assets, such as cargo containers and rail cars;

monitor utility meters;

and monitor oil and gas assets.

At the heart of the Commercial IoT service is a demodulator and RF interface, called an appliqué, which is located at a gateway and an application server in our facilities.

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The ST100 offers a customizable approach to new commercial IoT product innovations and can be used by simply adding power, a mechanical enclosure and configuring the settings within the device firmware.

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.

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 own solution.

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These features will result in a longer field life than existing devices.

Solar-powered devices also take advantage of our network's ability to support multiple billions of daily transmissions.

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

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Future Developments

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.

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 enhance 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.

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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.

Also included in "Engineering and Other" is revenue associated with our spectrum manager lease agreement with Nokia to utilize Band 53.

Spectrum and Regulatory Structure

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Satellite Network

In the United States, the Federal Communications Commission ("FCC") has authorized us to operate between 1610-1618.725 MHz for “Uplink” communications from mobile earth terminals to our satellites and between 2483.5-2500 MHz for “Downlink” communications from our satellites to our mobile earth terminals.

In the United States, the FCC has authorized us to operate between 1610-1618.725 MHz for “Uplink” communications from mobile earth terminals to our satellites and between 2483.5-2500 MHz for “Downlink” communications from our satellites to our mobile earth terminals.

The FCC has also authorized us to operate our domestic gateways with our first and second-generation satellites in the 5091-5250 and 6875-7055 MHz bands.

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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 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.

In December 2018, we successfully completed the Third Generation Partnership Project (“3GPP”) standardization process for the 11.5 MHz of our licensed MSS spectrum terrestrially authorized by the FCC.

The 3GPP designated the band as Band 53.

Additionally, in March 2020, we announced that the 3GPP approved the 5G variant of our Band 53, which is known as n53.

We are authorized to provide terrestrial broadband services over 11.5 MHz of our licensed MSS spectrum at 2483.5 to 2495 MHz throughout the United States of America and its Territories.

We are licensed by the FCC to provide these services and we expect our authorization to be renewed in 2024.

The Third Generation Partnership Project (“3GPP”) has designated the 11.5 MHz terrestrial band as Band 53 with 5G variant of our Band 53, known as n53.

This new band class provides a pathway for our terrestrial spectrum to be integrated into handset and infrastructure ecosystems.

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

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.

To date, we have received additional terrestrial authorizations in various countries including Brazil, Canada and South Africa, among others.

We expect this global effort to continue for the foreseeable future while we seek additional terrestrial approvals to internationally harmonize our S-band spectrum across the entire 16.5 MHz authority for terrestrial mobile broadband services.

We expect our terrestrial authority will allow future partners to develop high-density dedicated networks using the TD-LTE and 5G protocols for private networks as well as the densification of cellular networks.

We believe that our offering has competitive advantages over other conventional commercial spectrum allocations.

Such other allocations must meet minimum population coverage requirements, which effectively prohibit the exclusive use of most carrier spectrum for dedicated small cell deployments.

In addition, low frequency carrier spectrum is not physically well suited to high-density small cell topologies, and mmWave spectrum is subject to range and attenuation limitations.

We believe that our licensed 2.4 GHz band holds physical, regulatory and ecosystem qualities that distinguishes it from other current and anticipated allocations, and that it is well positioned to balance favorable range, capacity and attenuation characteristics.

To date, we have received additional terrestrial authorizations in various countries including Brazil, Canada, South Africa and Spain, among others.

We have a strategic perpetual licensing agreement for exclusive access to certain key XCOM technologies and personnel.

The license covers a number of XCOM’s novel technologies for wireless spectrum innovations, including XCOM RAN, XCOM’s commercially available coordinated multipoint radio system.

XCOM technologies deliver substantial capacity gains and other benefits in dense, complex, challenging wireless environments in sub 7 GHz spectrum including Band n53.

We also gained exclusive access to XCOM’s peer-to-peer connectivity technologies that could have applications across cellular and satellite devices.

We compete in the MSS sector of the global communications industry.

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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.

Customers typically use satellite voice and data communications in situations where existing terrestrial wireline and wireless communications networks are impaired or do not exist or where they prefer to operate on a single system across terrestrial territories.

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.

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Fixed satellite services providers, such as Intelsat Ltd., Eutelsat Communications and SES S.A., and aperture terminal companies, such as Hughes and Gilat Satellite Networks, are characterized by large, often stationary or "fixed," ground terminals that send and receive high-bandwidth signals to and from the satellite network for video and high speed data customers and international telephone markets.

On the other hand, MSS providers, such as Globalstar, ORBCOMM, Inmarsat PLC (“Inmarsat”) and Iridium Communications Inc.

(“Iridium”), focus more on voice and/or data services (including data services which track the location of remote assets such as shipping containers), where mobility or small-sized terminals are essential.

On the other hand, MSS providers, such as Globalstar, Viasat, Inc.

("Viasat") (which acquired Inmarsat PLC (“Inmarsat”)), Iridium Communications Inc.

(“Iridium”), and ORBCOMM, focus more on voice and/or data services (including data services which track the location of remote assets such as shipping containers), where mobility or small-sized terminals are essential.

As mobile satellite terminals begin to offer higher bandwidth to support a wider range of applications, we expect MSS operators will increasingly compete with fixed satellite services operators.

There are also multiple new systems that have recently launched as well as systems that are expected to launch over the coming years.

These include SpaceX’s Starlink and Amazon Kuiper.

These systems each have many thousands of satellites in their constellations providing a host of services across consumer broadband, government and direct-to-cellular.

LEO systems reduce transmission delay compared to a geosynchronous system due to the shorter distance signals have to travel.

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Our most direct competition comes from other global MSS providers.

Our largest global competitors are ORBCOMM, Inmarsat and Iridium.

Our largest global competitors are Viasat, Iridium and ORBCOMM.

We compete primarily on the basis of coverage, quality, portability and pricing of services and products.

In recent years, advancements in technology have also encouraged non-traditional companies to enter the market.

Inmarsat owns and operates a fleet of geostationary satellites.

Due to its multiple-satellite geostationary system, Inmarsat's coverage area extends to and covers most bodies of water more completely than our system.

Accordingly, Inmarsat is the leading provider of satellite communications services to the maritime sector.

Inmarsat also offers global land-based and aeronautical communications services.

We compete with Inmarsat in several key areas, particularly in our maritime markets.

Inmarsat markets mobile handsets designed to compete with both Iridium’s mobile handset service and our GSP-1700 handset service.

Viasat operates its owned and leased satellites.

Viasat provides communications technologies and services to enterprises, consumers, military and government users.

During 2023, Viasat completed the acquisition of Inmarsat, which owned and operated a fleet of geostationary satellites.

Due to its multiple-satellite geostationary system, Inmarsat's coverage area extended to and covered most bodies of water more completely than our system.

Accordingly, Inmarsat (through Viasat) is the leading provider of satellite communications services to the maritime sector.

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

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

Additionally, Garmin's inReach devices provide two-way tracking with SOS capabilities, Honeywell Global Tracking has a personal tracking unit that enables a smartphone with satellite tracking and messaging capabilities and Somewear has a satellite hotspot;

Additionally, Garmin's inReach devices provide two-way tracking with SOS capabilities;

Honeywell Global Tracking has a personal tracking unit that enables a smartphone with satellite tracking and messaging capabilities;

and Somewear has a satellite hotspot;

these products work on Iridium's satellite network.

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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 less expensive terminals.

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

We provide service in areas that are inadequately covered by these ground systems.

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

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

In some of our markets, such as rural telephony, we compete directly or indirectly with SpaceX, which offers voice over IP through its own devices and satellites which has become increasingly competitive due to technological advances that have resulted in smaller, more flexible and less expensive terminals.

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

3 unchanged sentences

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.

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

We may be able to address certain of these use cases with spectrum provided by our satellite network.

28 unchanged sentences

We hold various U.S.

and foreign patents and patents pending that expire between 2023 and 2039.

These patents cover many aspects of our satellite system, our global network and our user terminals.

and foreign patents and patents pending, including those acquired from the License Agreement.

These patents cover many aspects of our satellite system, our global network, our user terminals and XCOM technologies.

In recent years, we have reduced our foreign filings and decided to allow some previously granted foreign patents to lapse based on (a) the relative significance of the patent, (b) our assessment of the likelihood that someone would infringe in the foreign country, and (c) the probability that we could or would enforce the patent in light of the expense of filing and maintaining the foreign patent which, in some countries, is quite substantial.

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 credit facility agreement we entered into in 2019 (the "2019 Facility Agreement").

Our intellectual property is pledged as security for our obligations under the Funding Agreements (as defined below).

Human Capital

As of December 31, 2022, we had 332 employees in fourteen countries around the world;

As of December 31, 2023, we had 348 employees in fifteen countries around the world;

24 of our employees were located in Brazil and subject to collective bargaining agreements.

3 unchanged sentences

We attract employees through various platforms, such as online job portals, recruiters, in-person job fairs, local universities and employee referrals.

Salaries are competitive and based on job position, physical location, experience and skills.

Salaries are competitive and based on job position, regional location, experience and skill set.

In addition to base salary, certain employees participate in longer-term incentive programs, which include awards of stock-based compensation.

1 unchanged sentence

We also encourage training and development through Globalstar University, which is an online platform that hosts a variety of training programs ranging from leadership and management programs to technical, on the job training.

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

Employee engagement is also important to 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 as "Diversity and Inclusion" continues to be one of the highest rated culture categories.

1 unchanged sentence

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.

Usage on the network and subscriber device sales are subject to seasonal and situational changes.

April through October are typically our peak months for usage-based service revenues and equipment sales.

15 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