Globalstar discloses extended MSS network services deal with Apple

In a regulatory filing, Globalstar (GSAT) notes that as previously disclosed, the company is party to a terms agreement with its customer, Apple (AAPL), which contains terms and conditions governing the development, launch and operation of Satellite Services. On October 29, the company and customer agreed to make certain amendments to the Services Agreements and entered into other related agreements for Globalstar to deliver expanded services to customer over a new mobile satellite services, or “MSS,” network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing. The Extended MSS Network will be owned by Globalstar Licensee, LLC, together with its subsidiaries, and operated by the company. “As set forth below, Customer will prepay for certain services to be delivered by the Company to Customer’s end users utilizing the Extended MSS Network and will be a passive equity holder in Globalstar SPE. The Globalstar SPE will hold certain network assets necessary for the Extended MSS Network and will not have commercial operations. The Company will retain control of the board of managers of the Globalstar SPE and continue to operate and maintain the assets owned by and licenses granted to the Globalstar SPE. Globalstar will retain 100% of all terrestrial, MSS and other revenue and will continue to allocate 85% of its network capacity to render the Satellite Services to Customer across existing and new satellites as well as use the remaining capacity to service its other MSS customers,” the filing stated.