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The satellite communication feature rumored to be provided by Globalstar Inc will enable the new iPhone users to call or send messages in absence of 4G/5G networks.
A recent report citing the new iPhones to offer satellite communication functionality led to an almost 64% increase in the price of Globalstar (NYSE American: GSAT) shares. TFI International Securities analyst Ming-Chi Kuo, in his note to investors, stated that Apple would likely enable the customers of its newest iPhone to make emergency calls and messages even in the absence of cellular networks with the help of LEO satellite communication. Kuo also stressed Apple’s optimism with respect to the satellite trend. Apple Inc (NASDAQ: AAPL) has not yet made a formal announcement about the new iPhone, its name of features, however, the product will be released somewhere around September.
Globalstar Satellite Communication Functionality
Apple has been in the pursuit of enabling satellite features since 2017 when it employed two executives having satellite expertise. They were tasked with the goal of enabling wireless technologies thus reducing the reliance on network coverage and network operators. According to the report, Qualcomm’s X60 baseband chip will enable the satellite feature. Globalstar’s existing partnership with Qualcomm in supporting the n53 band in future X65 baseband chips points towards the possibility of Globalstar being the preferred Apple partner. In addition, in case the network operators close a deal with Globalstar, there is also this benefit for customers of that network to enjoy Globalstar’s satellite communications functionality without any additional costs.
Kuo compared the satellite communications technology to the mmWave 5G when it comes to its capabilities and effect on the cellular network industry. Apple is a reliable brand and will definitely help consolidate Globalstar’s reputation and competency in the market. With the rest of the smartphone companies waiting for the X65 variant due in 2022, Apple would be the only one to adopt the satellite feature in the present, thus giving it an edge over its competitors.
Although the feature would come in handy only in emergencies as per a source familiar with the functionality, it would no doubt increase iPhone’s appeal among customers. Technology is a dynamic concept and with its rapid advancement in mobile phone engineering, soon satellite communication would be a common element.
Globalstar Inc. is a Louisiana-based American satellite Communications Company that controls an LEO i.e. Low Earth Orbit Satellite constellation. The LEO operation primarily enables satellite phone and low-speed data communications. It offers its services to both commercial and retail users across 120 countries. Apart from mobile satellite voice and data services, Globalstar also offers mobile and fixed satellite telephones, satellite airtime packages and duplex satellite data modems.