Globalstar, Inc. (OTCMKTS:GSAT) Holds Steady After Surge

986GSAT_chart.pngYesterday’s early morning surge of Globalstar, Inc. (OTCMKTS:GSAT) retraced only briefly and the stock managed to hold a mostly steady course through the rest of the session, closing nearly 18% up. The ticker moved its third largest daily share volume for the last six months.

The trigger for the percentile jump and the volume surge was the Federal Communications Commission publishing an official notice, informing it will consider a set of rules proposed by GSAT. Even though this does not mean that the FCC has decided in favor of GSAT‘s proposal, this is an important step forward for the satellite company.

The proposed rules will allow GSAT to utilize part of its spectrum band not just for satellite services but also for terrestrial broadband networks, filling in an exponentially growing demand in the U.S. Bloomberg reported that the FCC blocked a similar move on part of Philip Falcone, but in that case there was going to be interference from the terrestrial signal that would tamper with GPS equipment and reception.

GSAT clarified that their proposed use of the spectrum will not interfere with the communication between GPS devices and satellites. The change could potentially increase the value of GSAT‘s slice of the spectrum and the Bloomberg article on the matter even mentions that such an increase could lead to cable and phone companies acquiring GSAT. The speculation for such a scenario is given more weight by the rumors that retail giant Amazon was using GSAT‘s spectrum to test a wi-fi network that works with Amazon’s mobile devices.

75GSAT_logo.jpgGlobalstar has a conference call scheduled for tomorrow, to discuss the implications of the FCC news, so investors may want to tune into that.

The ticker is still sticking to its new highs in today’s session, currently trading 1% up.

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