Kerrisdale Takes Its Globalstar, Inc. (GSAT) Short To The FCC

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Kerrisdale Takes Its Globalstar, Inc. (GSAT) Short To The FCC
Globalstar GSAT

Globalstar, Inc. (NYSEMKT:GSAT) shares are taking a beating once again as Kerrisdale Capital Management presses its short thesis, this time sending a letter to the Federal Communication Commission (FCC) arguing that opening Channels 12 and 13 would be a more effective way to deal with Wi-FI congestion than Globalstar’s Terrestrial Low Power Service (TLPS). GSAT is currently down 10%, with plenty of volatility over the last few hours.

“Globalstar’s TLPS concept is technically and commercially defective and will do nothing to expand wireless broadband capacity. By contrast, easing the existing restrictions on out-of-band emissions in the 2.4 GHz Band will free up a fourth channel for legacy Wi-Fi and thus smooth the transition to the far more attractive 5 GHz Band,” writes Kerrisdale founder Sahm Adrangi. “We have no objection in principle to permitting TLPS and newly usable Channels 12 and 13 alongside one another; the market can then decide which approach is more attractive.”

Adrangi asks FCC to open up additional Wi-FI channels alongside TLPS

According to Adrangi, Wi-FI Channels 12 and 13 are already widely used outside the US, and that Channel 13 in particular would be useful because it gives network engineers more options when planning a new wireless l