On November 1, 2001 GlobalTel marked the first anniversary of its commercial operations.
A year ago the company was awarded all required frequency and service licenses along with
necessary gateway and end user equipment certificates and obtained official permissions to
commence commercial Globalstar mobile satellite communications services
throughout Russia.
GlobalTel is proud to report that over 3000 commercial subscribers have already been
connected to the network in Russia. Commercial traffic has been increasing 35% a month,
and average MOU (Minutes of Use) exceed 100 minutes a month per subscriber. This is a
clear indication that GlobalTel's customers are actively using mobile satellite
services to improve their communications needs in Russia. With up to 80% of Russia
not served or underserved by existing telecommunications services, the need for
Globalstar service in Russia can not be overestimated. According to third quarter
statistics released by Globalstar L.P., total Globalstar service in Russia grew 203%,
making Russia the fastest growing Globalstar service area worldwide.
Nikolai Yambourenko, General Director of GlobalTel confirms: "We have been successful
in selling our services to corporate clients in vertical markets in oil and gas, energy,
forestry, construction, mining, geology, transportation, fishing, marine and government
organizations operating throughout Russia". During the year, GlobalTel has successfully
added a number of additional products and services to its portfolio. Key new services
include; asynchronous data services at 9.6 kbps rates, short messaging (SMS) and position
location services and national GSM and international Globalstar roaming. By the end of
this year, a 4-channel mobile platform will be introduced to allow data communications
at 32 kbps. Based on these advanced products GlobalTel has been offering turn-key
solutions to corporate clients, including SCADA systems, fleet management systems,
telemetry, monitoring and control systems.
GlobalTel has completed the certification of the Qualcomm GSP-2800M (fixed maritime unit)
in the Russian River Register. The certification permits the use of the GSP-2800M
terminal as back-up radio equipment. GlobalTel believes that this product will enable
GlobalTel to actively participate in the significant market for satellite
telecommunications services to river vessels fleets.
GlobalTel is testing a new solution which will support aviation safety applications,
including real-time video and audio monitoring of aircraft cabins and cockpits,
Air Traffic Control service, to alert aviation authorities of emergencies by
transmission of real-time aircraft flight data to the ground.
Globalstar L.P. Restructuring Plan
On November 13, 2001 Globalstar L.P. announced its third quarter financial results.
Globalstar stated in this announcement that it is completing a financial restructuring
plan and that Globalstar file for Chapter 11 bankruptcy protection in the United
States in the near future. A Chapter 11 bankruptcy proceeding under U.S. law is not
liquidation. Rather it is a mechanism to allow companies to restructure their debt,
and it is intended to help businesses to continue developing their business. Examples
include Continental Airlines (which filed for bankruptcy in 1994 and today is very
successful, the recent downturn notwithstanding), Southland Corporation (7-Eleven stores)
and Texaco.
Globalstar and its partners have been developing a new business plan that is intended
to form the basis for the restructuring of Globalstar's finances and to ensure
uninterrupted service for the majority of Globalstar customers. This plan assumes
the conversion of the Globalstar debt obligations into equity in a new Globalstar company.
If Globalstar's restructuring plan is agreed upon and put into effect, and if the new
Globalstar company receives the revenues currently projected under the revised business
plan, then Globalstar believes that it can achieve cash flow breakeven operations with
far less additional funding than would have been required under the Globalstar's earlier
business model. Globalstar is currently in discussions with a number of possible
investors to obtain additional financing.
During the Chapter 11 process, the Globalstar Service will continue uninterrupted with no
declines in coverage or service quality for all of GlobalTel's Globalstar subscribers
in Russia.
GlobalTel, a separate Russian legal entity, assures that it has the appropriate legal,
financial and organizational resources to keep servicing its current and future
customers.
Press-service of CJSC GlobalTel
Customer-Care Center: (095) 797-27-27
Fax: (095) 797-27-31
http://www.globaltel.ru
