Globalstar Combines Band 53 Spectrum With CBRS: Stock to Gain?

Zacks
11 Oct 2024

Globalstar GSAT recently joined forces with Global Telecom, Alliance and Hawk Networks to deliver enhanced connectivity in the United States through the integration of Band 53 and the Citizens Broadband Radio Service (CBRS). The initiative aims to support high-value applications and ensure smooth, reliable wireless coverage that modern enterprises demand. 

Global Telecom, recognized for its expertise in carrier aggregation, was the first to create modules that support Band 53 along with other spectrums like CBRS. Band 53 spectrum is a 10 MHz channel designed to work seamlessly with CBRS. By aggregating Band 53 with CBRS Band 48, Globalstar enables organizations to maintain stable connectivity in situations where Priority Access License channels are unavailable or in highly regulated Dynamic Protection Areas.

Alliance’s integration of the new solution on the Althea platform, powered by Hawk Networks’ Key LTE/5G core solution, further strengthens the offering. This will enable the combined use of CBRS Band 48 and Band 53 for faster, more efficient connections. Globalstar will provide Band 53 spectrum rights for specific areas. Alliance will also bring Global Telecom's full range of devices and RAN solutions, which aligns with this approach, to the U.S. market.

The solution is likely to unlock greater potential for mission-critical applications. By overcoming the limitations of channel-sharing rules and delivering a more reliable experience, the collaboration is set to expand CBRS adoption among industries that need dependable private networks.

Will Continuous Innovation in Band 53 Aid GSAT’s Stock?

Globalstar’s commitment to the development of the Band 53/n53 ecosystem is shaping the future of private wireless networks in the United States and beyond. With the growing demand for private LTE and 5G networks, the demand for more spectrum will grow. GSAT’s Band 53, along with its 5G variant, n53, is likely to play a pivotal role in meeting this demand. The versatility of Band 53 makes it an attractive option for carriers, cable companies and system integrators looking to build private LTE and 5G networks. With Globalstar’s XCOM RAN product, which offers significant capacity gains in dense wireless environments, Band 53 is set to become a key enabler of 5G solutions for private networks.

Moreover, by collaborating with tech giants like Global Telecom, Alliance and Hawk Networks, Globalstar is positioning itself at the forefront of wireless network transformation. With the ability to provide uninterrupted service in critical areas, increased network performance through carrier aggregation and a growing ecosystem of compatible solutions, Globalstar’s offering is set to revolutionize the way industries approach wireless communication.

Owing to these advancements, GSAT’s solutions are expected to witness healthy momentum with the generation of higher revenues and expansion of business. Improving top-line performance and a healthy business pipeline are likely to propel the stock’s trajectory.

GSAT faces stiff competition in the mobile and satellite communications industry from the likes of Iridium Communications IRDM, EchoStar SATS and SES AI SES.

A Look at the Performance of Peers

Iridium is a satellite communications company that offers dedicated commercial global voice and data communications services to businesses and governments in the United States and globally. It also works with non-governmental organizations.

Iridium's performance is gaining from higher engineering and support revenues due to a rise in activity with the U.S. government. The company expects engineering and support revenues to increase this year owing to ongoing work on the Space Development Agency contract.

However, continued weakness in the Equipment business poses headwinds. Iridium expects equipment sales for 2024 to be lower than in 2023, aligning more closely with pre-2022 levels. Stiff rivalry and a high debt burden are concerns.

EchoStar is a global provider of satellite service operations, video delivery services, broadband satellite technologies and broadband Internet services for home and small office customers. They also deliver innovative network technologies, managed services, and various communications solutions for aeronautical, enterprise and government customers.

Soft demand trends across Pay-TV, Retail Wireless and Broadband segments amid a strong 5G network footprint is affecting SATS’ performance. High-debt burden is an added concern.

Based in Luxembourg, SES S.A. provides satellite broadband communications services. It offers video services, such as broadcasting, content distribution and occasional use and full-time video contribution services. The company also provides enterprise services, including enterprise broadband, infrastructure as a service, bandwidth, and customized connectivity and tailored services.

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