[Via Satellite 10-10-2014] In a conference call to address the targeted and strongly worded claims of Kerrisdale Capital<\/b> against Globalstar<\/b>, company CEO Jay Monroe, along with John Dooley, founder and managing director of Jarvinian<\/b>, set out to refute the recent claims against the business case and the value of Globalstar\u2019s upcoming Terrestrial Low Power Service (TLPS). In a 67-page research note, Kerrisdale calls Globalstar\u2019s equity \u201cworthless,\u201d claiming at the very beginning \u201cit takes little more than a rudimentary understanding of wireless communications to realize that.\u201d<\/p>\n
Globalstar\u2019s stock has been subject to volatility following rumors that Kerrisdale would disclose a short position, which it did, along with a related thesis and presentation. Following the sharp drop in share value that resulted from the Kerrisdale report the company\u2019s stock received a slight boost from the presentation. Monroe responded with a strongly worded rebuttal, accusing the investment management firm of maliciously seeking to bring the company down, along with its investors.<\/p>\n
\u201cThe presentation we saw from Kerrisdale the other day is fundamentally flawed and it\u2019s wrong,\u201d said Monroe. \u201cWhat is clear is that Kerrisdale has completely mischaracterized a combination of industry facts and Globalstar\u2019s long-term spectrum and operational prospects all for its personal gain.\u201d<\/p>\n
Central to the call was the long-term value of Globalstar\u2019s 2.4 GHz band, which the company intends to use for the TLPS Wi-Fi service. Kerrisdale claims this band is of no value, and that even with Federal Communications Commission <\/b>(FCC) certification \u2014 expected later this year \u2014 it has no financial value, alleging that Wi-Fi congestion is not a problem, nor would TLPS solve it.<\/p>\n
\u201cThe irrelevance of TLPS will be reinforced by the rapid ascent of the next-generation Wi-Fi protocol 802.11ac, which operates exclusively in the 5 GHz band and will achieve performance that the 2.4 GHz-only TLPS could never match,\u201d wrote Kerrisdale. \u201cUltimately, TLPS is nothing more than GSAT\u2019s latest gimmick to stave off bankruptcy.\u201d<\/p>\n
Globalstar responded citing Cisco<\/b>, Google <\/b>and Microsoft <\/b>on the need to address Wi-Fi congestion. According to Globalstar, this congestion will only continue to intensify and expects it to become worse over time. The company claims the migration to 5G has been made \u201cout of need, not out of want,\u201d and that that even still 5G could never serve as a replacement.<\/p>\n
Monroe said Thermo Capital Partners has invested more than $600 million into Globalstar and has never sold any shares. He also claimed Kerrisdale\u2019s comparisons to Iridium<\/b>\u2019s capital raise were invalid since Globalstar\u2019s next-generation constellation is already in place.<\/p>\n
Dooley contributed significantly, stating \u201c5G is not a replacement for 2.4 GHz, nor is it something that shall ever be a carrier access mechanism. It is something that shall always be a compliment for these services, and for that it\u2019s very valuable, but that is simply all it is, and all it ever will be.\u201d<\/p>\n
\u201cThe capabilities of [the 2.4 GHz band] cannot be replicated or mitigated by 5G,\u201d added Monroe. \u201cTLPS is the only service of its kind. TLP is not only a superior solution, it is an immediate solution that can be effectively and immediately deployed.\u201d<\/p>\n
TLPS is located in between AT&T<\/b>\u2019s Wireless Communication Service (WCS) and Sprint\u2019s Educational Broadband Service (EBS) spectrum. Globalstar claims its satellite spectrum, juxtaposed next to the Public Wi-Fi band, would increase the availability of Wi-Fi capacity by a third. Testing of the service has also proven it to achieve four times the throughput capacity of Public Wi-Fi. These, among other reasons, were used to assuage investor concerns and to validate the profitability of this service.<\/p>\n
\u201cThe more compromised the local Wi-Fi resource, the greater improvement from using TLPS,\u201d said Monroe. \u201cThis is a service that people will pay for.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
[Via Satellite 10-10-2014] In a conference call to address the targeted and strongly worded claims of Kerrisdale Capital against Globalstar, company CEO Jay Monroe, along with John Dooley, founder and managing director of Jarvinian, set out to refute the recent claims against the business case and the value of Globalstar\u2019s upcoming Terrestrial Low Power Service […]<\/p>\n","protected":false},"author":1,"featured_media":75960,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-75957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/75957"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=75957"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/75957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/75960"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=75957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=75957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=75957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}