Globalstar Pops 17% as Airwave License Heads Toward FCC Approval
By Scott Moritz
(Bloomberg) -- Globalstar Inc. rose as much as 17 percent in extended trading as the company’s revised request to offer mobile broadband service moved closer to federal approval.
The shares extended their gain, reaching $1.23, after closing at $1.05, up 12 percent, in regular trading in New York. The U.S. Federal Communications Commission is circulating the proposal, according to the agency’s website, in a sign that a decision could be coming soon.
Globalstar is likely to get approval for use of Terrestrial Low Power Service spectrum licenses for commercial mobile broadband before FCC Chairman Tom Wheeler leaves his position, Maglan Capital Chief Investment Officer Steven Azarbad told Bloomberg News in an interview. Maglan Capital is one of Globalstar’s top 15 holders, he said.
The satellite phone service company has addressed concerns raised by companies like Sprint Corp. and Microsoft Corp., Azarbad said.
Shares of Covington, Louisiana-based Globalstar, which provides mobile voice and data communications via satellite, are down 27 percent this year through Friday’s close.
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