WASHINGTON-The Federal Communications Commission authorized Globalstar L.L.C. to operate land-based cell phone networks to augment its existing mobile satellite services, a significant enhancement that should allow the company to reduce the size of its satellite phones.
Globalstar is the second MSS operator to win regulatory approval to complement existing satellite facilities with an “ancillary terrestrial component,” or ATC. The FCC gave Mobile Satellite Ventures ATC status in 2004.
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“With ATC approval, Globalstar can offer a ubiquitous and seamless wireless solution for various voice, broadband data and multimedia wireless applications,” the company said. “Globalstar may potentially offer an all-Internet Protocol overlay network to various terrestrial wireless operators who currently only offer voice and low-rate data services. Globalstar will then have the capability to offer enterprise business solutions with reduced dependence on the wireline network and decreased or eliminated corresponding long distance charges.”
In the past, the cell phone industry has challenged ATC on legal grounds. However, wireless carrier opposition to ATC and MSS spectrum issues has abated somewhat. Thus, it remains unclear whether MSS will be a competitive threat or an opportunity for mobile phone operators.