Globalstar - History

History

The Globalstar project was launched in 1991 as a joint venture of Loral Corporation and Qualcomm. On March 24, 1994, the two sponsors announced formation of Globalstar LP, a limited partnership established in the U.S., with financial participation from eight other companies, including Alcatel, AirTouch, Deutsche Aerospace, Hyundai and Vodafone. At that time, the company predicted the system would launch in 1998, based on an investment of $1.8 billion.

Globalstar received its US spectrum allocation from the FCC in January 1995, and continued to negotiate with other nations for rights to use the same radio frequencies in their countries.

The first satellites were launched in February 1998, but system deployment was delayed due to a launch failure in September 1998 that resulted in the loss of 12 satellites in a launch by the Russian Space Agency. In February 2000, it launched the last of 52 satellites — 48 satellites and four in-orbit spares (reduced from the original plan of eight in-orbit spares). Another eight unlaunched satellites were maintained as ground spares.

The first call on the original Globalstar system was placed on November 1, 1998, from Qualcomm chairman Irwin Jacobs in San Diego to Loral Space & Communications CEO and chairman Bernard Schwartz in New York.

In October 1999, the system began "friendly user" trials with 44 of 48 planned satellites. In December 1999, the system began limited commercial service for 200 users with the full 48 satellites (no spares in orbit). In February 2000, it began full commercial service with its 48 satellites and 4 spares in North America, Europe and Brazil. Initial prices were $1.79/minute.

On February 15, 2002, the predecessor company Globalstar (old Globalstar) and three of its subsidiaries filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code.

In 2004, restructuring of the old Globalstar was completed. The first stage of the restructuring was completed on December 5, 2003, when Thermo Capital Partners LLC was deemed to obtain operational control of the business, as well as certain ownership rights and risks. Thermo Capital Partners, became the principal owner.

Globalstar LLC was formed as a Delaware limited liability company in November 2003, and was converted into Globalstar, Inc., on March 17, 2006.

In 2007 Globalstar launched eight additional first-generation spare satellites into space.

In 2011, Globalstar began laying off employees of their Canadian office to reduce costs and restructure the company. Globalstar is also in the process of moving both their head office and their Canadian call center to Covington, Louisiana to take advantage of the states' current tax breaks and low cost of living.