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FCC Could Approve GlobalStar's (GSAT) TLPS by June 30, Says Height Securities

June 20, 2016 9:24 AM EDT
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(Updated - June 20, 2016 10:12 AM EDT)

FCC will likely issue an order approving GlobalStar's (NYSE: GSAT) TLPS spectrum by June 30, according to Niles Tracy, an analyst at Height Securities. Tracy pointed out that the FCC traditionally announces regulatory orders in the week immediately proceeding or following the commission’s monthly open meeting. This month's open meeting will be held of Friday, June 24th.

Despite several negative reports recently, due to ongoing negotiations and lobbying, Tracy believes believes the order will ultimately be approved.

"The initial 'no' vote from Commissioner Pai came on June 2, 2016. A reported Rosenworcel 'dissent' followed. At the same time, Commissioner Rosenworcel and Commissioner O’ Rielly met with the NCTA, and then other pro-GSAT groups over the following weeks. Commissioner Rosenworcel never confirmed whether she had dissented, or whether she had actually voted, which indicates to us that the 'no' speculation was either a negotiating tactic, or perhaps was unintentional implicationfrom her staff. We continue to believe that this 'dissent' was actually a bargaining tactic, and the Rosenworcel may ultimately approve the order," said Tracy.

The analyst added, "The ongoing ex-parte meetings indicate that both Rosenworcel and O’Rielly are continuing to consider and debate the order. 18 days have past since the original announcement from Commissioner Pai. As the timeline continues to extend, the likelihood that the order is being negotiated increases, and the likelihood of the order being voted down decreases."



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