Scalper1 News
Globalstar ( GSAT ) stock popped for the second straight trading day on views federal regulators will green light its petition to open up spectrum airwaves in the 2.4 GHz block for wireless services. Globalstar, a mobile satellite service operator, had faced opposition from Alphabet ’s ( GOOGL ) Google, Microsoft ( MSFT ) and the cable TV industry over concern the airwaves could interfere with Wi-Fi services. Comcast ( CMCSA ) has been expanding its public and residential Wi-Fi network and might jump into wireless services, analysts say. Tom Wheeler, chairman of the Federal Communications Commission, on Friday proposed an order that would allow Globalstar to move forward with its “authenticated Wi-Fi” service. Globalstar stock, which popped 35% on Friday, was up another 15% in morning trading in the stock market today , albeit still trading below 3. It’s possible Globalstar’s opponents such as Microsoft or Google could make a last-ditch effort to block approval, analysts say. The FCC could issue new rules as soon as June. Paul Gallant, an analyst at Guggenheim Partners, says a remaining issue is what limitations the FCC’s order puts on Globalstar’s commercial rollout. “There has been some concern that an FCC approval could be a Pyrrhic victory if the agency attached heavy limits on power output or out-of-band-emissions that restricted the value of Globalstar’s proposed service,” wrote Gallant in a research report. “We suspect the technical parameters are likely to approximate what Globalstar initially proposed 2.5 years ago. That would be positive for its new service.” Amazon.com ( AMZN ) reportedly had tested Globalstar’s spectrum a couple of years ago, said one report. Scalper1 News
Scalper1 News