Globalstar, Inc. (AMEX:GSAT) Q4 2022 Earnings Call Transcript

Kyle Pickens: Yes. Hi, George. So look, I think there are a lot — a number of large multinational companies that have operations in various geographies where we have terrestrial rights. And so the ability through a partnership like we have now with strategic collaboration that we have with Qualcomm we’ll be able to go to those types of parties. And so here is a solution that works seamlessly across all of your operations. That’s — I think that will be very attractive to a variety of different industries, including OEMs, large equipment manufacturers, mining companies, transportation, several different industries like that, that we’ll be going after. One of the things that we’ve talked about in the past, I think there’s, I guess, to maybe cut off some questions at some point.

But we’ve said that we think that the terrestrial opportunity is several hundred million dollars, many hundreds of millions of dollars a year in potential lease revenue. We think that the Qualcomm agreement that we’ve announced yesterday really moves us dramatically forward in that effort. I don’t even know the last — the release that we did this. But a while ago, we talked about how this — the process to get terrestrial spectrum where it’s deployable. This agreement and the work that Qualcomm is going to do is really kind of the last step in the development of the ecosystem. And we’re very excited to see how, now that we’ll soon have completely a solution that we can offer to the world, how fast that starts to grow. I mean, I’m starting to think of how do we manage kind of the inflow of opportunities whereas until today, it’s really been how do we get the ecosystem to the point where we can start to do that.

Operator: Our next question comes from Mike Crawford with B. Riley Securities.

Mike Crawford: Just to continue on that last topic in the earlier statement that you’re in negotiations on hundreds of millions of terrestrial spectrum leases. Can you break that out, that opportunity out by geography?

Kyle Pickens: Jay, do you want to take that or you want me to take it?

Jay Monroe: No, go ahead, Kyle.

Kyle Pickens: Yes. So it’s — there are a lot of different opportunities that we’re in various stages of negotiation in terms of — I don’t want to get too specific on any of them. But to get to the hundreds of millions of dollars, that would definitely implicate the United States, but it also could be global. So there’s a variety of different opportunities at various stages. And cumulatively, they add up to quite a large number, but I can’t be specific right now.

Mike Crawford: And given your ongoing satellite operations with your Band 53, is this something that really needs to be leased? Or would there be — are any of these discussions turning towards possible sale of the spectrum? Or could you even do that still operate your satellite business?

Kyle Pickens: Well, it’s hard for us to sell the spectrum in kind of the traditional sense. There’s lots of different ways that leases can be structured, but all of the conversations are around leasing the spectrum.

Mike Crawford: So Anterix likes to qualify its pipeline in terms of three stages, kind of early, middle and final stage. Is there any clarification of that sort you could do?

Kyle Pickens: Yes, it’s hard for us to do that at this point. I mean it’s — I feel like often we feel like we’re towards the very end of things and then they drag out and then people get disappointed. So there’s — we have a lot — this — we’re in 11 different countries. We’ve got a full ecosystem. I think there are a tremendous amount of opportunities ahead of us, but it’s — I don’t want to kind of start to get too refined on where we are in the pipeline. Yes.