Odeon: DESK ANALYST VIEW
We just concluded a very positive meeting with GSAT management hosted by Odeon Capital.
Key takeaways:
1. The Company is in active discussions with strategic partners that include major Tech Co.’s and carriers including and not limited to: TMUS, S, VZ. T, CMCSA, CHTR. AMZN is testing GSAT spectrum; unclear for what purpose. Strategic partners are somewhat still constrained by the ongoing Broadcast auction which has been a limiting factor in discussions.
2. Importantly, GSAT’s spectrum is a global asset and while many tend to focus on just the US spectrum, International is the larger band. Several players understand the global nature of the spectrum which is what makes it very valuable.
3. GSAT plans to file for International approval in 10 countries by year end – currently filed petition in three countries and another one is expected by quarter end with coverage of 6.2M MHz-POPs. The goal is to get to 9.9B MHz-Pops globally.
4. No realistically achievable amount of new spectrum resource can currently service even the most conservative demand for mobile data requirements. GSAT’s spectrum is unique in its support of small cell deployment and it’s band holds physical, regulatory, and ecosystem qualities that distinguish it from other current and anticipated allocations.
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