Wall Street Transcript Interview with Timothy E. Taylor, the VP, Finance, Operations and Strategy at Globalstar Inc. (GSAT)

Wall Street Transcript

67 WALL STREET, New York - July 21, 2014 - The Wall Street Transcript has just published its Wireless Communications & Telecom Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increased Competition in Wireless Space - Mobile Trends in Emerging Markets - China LTE Market - Hypercompetitiveness in Handset Market - Emerging Market Volumes

Companies include: Globalstar Inc. (GSAT) and many more.

In the following excerpt from the Wireless Communications & Telecom Report, the VP, Finance, Operations and Strategy at Globalstar Inc. (GSAT) discusses company strategy and the outlook for this vital industry:

TWST: As you mentioned, there are large parts of the world where satellite is the only real communication option. However, those areas also tend to be less populated. What does that mean for demand? How big is the demand for satellite communications?

Mr. Taylor: To frame the opportunity, there are about 1 billion people who live outside of terrestrial coverage out of the 7 billion people on Earth, and there are another 1 billion people that work or play outside of terrestrial coverage. So you have about 2 billion people in what we define as the total addressable market. Of course, the main hurdle is the reality that some percentage of the population currently can't afford satellite connectivity, and therefore, we are working every day to lower costs to access an ever-expanding market.

In terms of our subscribers, our base is now in excess of half a million and growing. We had limited capabilities up until Q3 of last year to deliver two-way communication but that service has been restored. Now that we have two-way service restoration, when combined with a relentless push to lower equipment costs, we will utilize an increasing portion of our capacity.

While it is unreasonable to forecast a subscriber base of 50 or 100 million, it certainly can be in the millions worldwide, and the biggest driver of that is reducing costs. Connectivity demands are there, and it is our job to develop a cost-effective supply. We remain committed to reducing costs, shrinking form factor, and improving the total utility and functionality of the products. When you combine these elements, it will drive the total subscriber base.

TWST: Where are your R&D priorities? Do you focus primarily on the form factor and reducing cost or is it also the actual physical communication part of that?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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