Globalstar Inc. (NASDAQ:GSAT) shares rose 5% after the telecommunications infrastructure company announced a launch services agreement with SpaceX for its upcoming satellite deployment.
Under the deal, Globalstar will use a SpaceX Falcon 9 rocket to launch satellites procured through a 2022 agreement with MDA. The launch is expected next year, following an initial launch scheduled for later this year.
These satellites, being built by MDA and Rocket Lab, have received Federal Communications Commission authorization to operate under Globalstar’s HIBLEO-4 filing, which grants a renewed 15-year operating term.
“The launch services agreement with SpaceX represents another important milestone as we continue to execute on our construction and launch plan,” said Dr. Paul Jacobs, Globalstar’s CEO. “These satellites will enhance our ability to provide the highest quality satellite services to our customers over the long-term.”
The new satellites will complement Globalstar’s existing second-generation fleet, ensuring uninterrupted satellite service for the company’s telecommunications network.