Globalstar Scales Back Amid Console Concerns

Mobile satellite communication company Globalstar, Inc. GSAT plunged on Thursday after deciding to narrow its request before the FCC concerning its provision of Terrestrial Low Power Service, or TLPS.

2013 FCC Notice Of Proposed Rulemaking

In 2013, the FCC issued a Notice of Proposed Rulemaking for the company's provision of TLPS, which allowed the company to use its 11.5 MHz of licensed spectrum along with 10.5 MHz of unlicensed spectrum in the adjacent ISM bank.

The company has been trying to create a new Wi-Fi service using a 22 Mhz-wide swath of spectrum known as Channel 14, located at 2.4 GHz. The company had argued that allocation of this spectrum for its TLPS service would augment the capacity of public wireless networks. Last year, the company did a demo of the service to the FCC.

Microsoft's Study, TLPS Signals

Meanwhile, Microsoft Corporation MSFT submitted a study to the FCC last month that showed that Globalstar's TLPS signals can disrupt connections between wireless controllers and its Xbox 360S game consoles. Globalstar refuted this claim in its earning call, alleging that Microsoft's tests included test set up and parameters that wouldn't occur in reality.

Globalstar's Reaction

Globalstar is now seeking to narrow the relief it originally requested, given the concerns expressed by Commissioners and parties participating in its proceeding. Accordingly, the company requested that the Commission to permit the terrestrial use of its 11.5 MHz of licensed spectrum in the 2.4 GHz band for low-power terrestrial broadband services.

The company said its Ex Parte filing would be posted to the FCC's Electronic Comment Filing System on Thursday.

At time of writing, shares of Globalstar plunged 16.99 percent to $0.855 on roughly 7.5 times its average volume. However, by publication, the shares had recovered modestly and were trading at $0.84.