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Satphone provider Globalstar, anxious to put out some good news amid their failing voice transponders, today displayed the company’s new second-generation satellites nearing completion at the Thales Alenia Space satellite manufacturing facility in Rome, Italy.

Globalstar expects to begin launching its second-generation constellation this summer with the first of four launches (of six satellites each), scheduled to begin July 5, 2010.

It can’t happen soon enough for Globalstar.

That’s because its S-band amplifiers used for two-way voice and duplex data service on its 48 Low Earth Orbiting spacecraft, have been degrading faster than Globalstar can replace them. Currently most Globalstar phones have a very short communication window, just one to two minutes with frequently dropped calls. The Company’s SPOT Satellite Messenger, which utilizes only the L-band uplink from a subscriber’s “Simplex” terminal, remain unaffected.

Globalstar and Iridium, launched their global satphone services amidst great fanfare in the early 90s. Both went bankrupt. Motorola’s Iridium cost some $4B, was purchased for $25 million by an investment group which now resells most of their capacity to the military. In 2002, Globalstar and three of its subsidiaries filed for Chapter 11 Bankruptcy.

Globalstar satellites are simple “bent pipe” repeaters. A network of ground gateway stations provides connectivity from the 40 satellites to the public switched telephone network and Internet. Iridium, by contrast, can relay signals from satellite to satellite.

Globalstar contracted Thales Alenia Space for the design, manufacture and delivery of up to 48 new Globalstar second-generation satellites and signed a launch contract with Arianespace. Four launches of six satellites each are to be launched using the Soyuz launch vehicle. These satellites will be integrated with the eight Globalstar satellites launched on the Soyuz in 2007.

Globalstar also announced this week that it has regained its Nasdaq Listing as a result of the Company’s Common Stock trading above $1.00 for a period of 10 consecutive days.

Until the new second-generation Globalstar satellite constellation is operational, Globalstar is offering its Optimum Satellite Availability T-tool (OSAT) on its Internet site, which subscribers may use to predict when one or more unaffected satellites will be overhead so they can make a voice call.

Last year, the FCC modified Globalstar’s license to permit use of WiMAX in its Ancillary Terrestrial Component (ATC) for services in the United States. Its spectrum lessee, Open Range Communications, will commence deployment of a broadband service with a $267 million loan commitment from the Department of Agriculture’s Rural Development Utilities Program. Outside the WiMAX coverage area, customers use Globalstar satellite service (or maybe not) in the Open Range model.

GlobarStar isn’t the only one with transponder problems. In 2008, ORBCOMM launched new low-earth orbit (LEO) satellites, equipped with an Automatic Identification System (AIS) for tracking ships, and will incorporate the ability to receive, collect and forward AIS data in the design of the next 18 ORBCOMM Generation 2 (0G2) satellites under development.

But last November, Orbcomm said four of the six AIS-equipped satellites, launched in June 2008, have now failed, with the other two likely to fail in the near future. The company won a $44 million claim with its insurers covering the loss of all six satellites. Orbcomm’s 18-satellite second-generation constellation won’t have its first group of six satellites ready for launch until late 2010.

Meanwhile, Harris Corporation last July deployed their 18-meter antenna reflector onboard the geosynchronous TerreStar communications satellite. On orbit tests have confirmed that the reflector is fully deployed in its intended position. Commercial operation is expected to begin in a few weeks.

With an antenna almost 60 feet across, and supporting 500 dynamically-configurable spot beams, TerreStar-1 will surpass the signal sensitivity and spot beam generation capability of all commercial satellites currently in orbit.

Space Systems/Loral controllers sent the commands to unfurl the reflector last July. The Harris antenna reflector makes it possible for the TerreStar-1 satellite to focus the 2 GHz S-band signals on the United States and Canada in order to provide these Mobile Satellite Services (MSS).

AT&T Mobility plans service that utilizes both Terrestar’s satellite and AT&T’s terrestrial cellular service. The first handset, which will use separate cellular and satellite chips, will cost about US$700 without a carrier subsidy. It will provide voice service as well as data at approximately 64K bits per second. TerreStar’s major investors are Harbinger Capital Partners and satellite TV company EchoStar.

TerreStar’s network will operate in two 10-Mhz blocks of contiguous MSS spectrum in the 2 GHz band throughout the United States and Canada – with a spectrum footprint that covers a population of nearly 330 million.

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