The network will comprise of gateway equipment initially at Globalstar's locations worldwide with an option to expand to 30 locations, and will design, manufacture, and deliver satellite air interface chips to be a part of the User Terminal Subsystem (UTS). The initial contract is valued at $100.8 million.

The all IP, third-generation network will use an air interface (AI) adapted for Globalstar's second-generation LEO (low earth orbit) satellite constellation and will provide voice, data, and video with expected speeds of up to 1 Mb/s in the forward link (to the user terminal) and 256 Kb/s in the return link (from the user terminal), enabling Globalstar to offer feature rich applications and services for their mobile satellite subscribers anywhere in the world.

The satellite air interface chip will allow Globalstar to deploy a wide variety of user terminals and devices.

"We are extremely pleased to award this contract to Hughes and initiate what we expect will be a long-term and rewarding relationship with the world's leading provider of satellite broadband networking solutions," said Jay Monroe, chairman and CEO of Globalstar, Inc.

"By signing this agreement we have completed our second-generation system design and operations plan, paving the way for our next generation of advanced wireless services. We anticipate new service offerings could include push-to-talk duplex SMS messaging and a number of other broadband applications including mobile video.

"In addition, this agreement not only provides us with options to fully outfit our entire ground segment, but it also provides us with continued compatibility with our first-generation products plus unique flexibility for future upgrades."

"As market leaders in the design and development of mobile satellite systems and user devices, we are excited to have been selected by Globalstar as the designer and supplier of their next-generation gateways and satellite air interface chips for the user terminals," said Pradman Kaul, chairman and CEO of Hughes.

"We look forward to manufacturing and deploying their flexible ground network and being part of supplying their customers with unique new solutions that only Globalstar, as a global LEO MSS operator can provide."

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