Radio regulations now support Globalstar, Inc. (NYSEMKT:GSAT) as a legally recognized mobile satellite services provider in Japan
SmallCapPower | September 5, 2017: Globalstar, Inc. (NYSEMKT:GSAT) announced recently that the Japanese Ministry of Internal Affairs and Communication has adopted radio regulations supporting Globalstar as a legally recognized mobile satellite services (MSS) provider in Japan.
Currently, Globalstar derives 99% of revenues from regions that include U.S., Canada, Europe, Central and South America. The Company has little exposure in APAC region (less than 1%), so this recognition as a MSS provider in Japan will likely pave the way to revenues from APAC region. This venture could be one of the starting points for Globalstar in the APAC region and further expand to other developing countries in Asia.
Barbee Ponder, General Counsel and Vice President Regulatory Affairs at Globalstar, commented, “Japan recognizes the need for its citizens to stay connected when traveling off the grid and for critical communications during emergency situations, whether such emergencies are the result of natural or man-made events. We greatly appreciate the enormous time and effort expended by the Ministry and our dedicated team of professionals at IPmotion in Tokyo. Our combined efforts will result in Globalstar’s life-saving products and services being made available in Japan.”
In terms of valuation, Globalstar currently trades at TTM price to sales value of 21.67x and price to book value of 13.81x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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