**DA 03-1932**

**Released: June 12, 2003**

**NEW GLOBALSTAR CORPORATION SEEKS CONSENT TO ASSIGNMENT AND TRANSFER OF
CONTROL OF LICENSES AND AUTHORIZATIONS HELD BY GLOBALSTAR, L.P.
SUBSIDIARIES AND AFFILIATE**

**Pleading Cycle Established**

**IB Docket No. 03-136**

**Comments/Petitions Due: July 14, 2003**

**Responses/Oppositions to Petitions Due: July 24, 2003**

#### THE TRANSACTION

On May 27, 2003, New Globalstar Corporation ("New Globalstar") filed
five applications pursuant to sections 214 and 310(d) of the
Communications Act of 1934, as amended (the "Act"), seeking Commission
approval of the proposed assignment or transfer of control of certain
Commission authorizations relating to the operation of the Globalstar
mobile satellite service ("MSS") system, from Globalstar, L.P. ("GLP")
or its affiliate, L/Q Licensee, Inc. ("LQL"), to New Globalstar
(together with GLP and LQL, the "Applicants"), which will be
majority-owned and controlled by ICO Global Communications (Holdings)
Limited ("ICO"). The authorizations to be assigned or transferred
include a non-common carrier space station license to operate an MSS
system, eight non-common carrier earth station licenses, a common
carrier blanket license for mobile earth terminals ("METs"), and three
international Section 214 authorizations, all of which are held by GLP's
subsidiaries or its affiliate, LQL. The Applicants request that the
Commission grant the five applications on an expedited basis in order to
maintain adequate funding for the continued operation of the Globalstar
system and to facilitate the emergence of the system from bankruptcy.
The Applicants also filed an amendment to a pending application of GLP
for a space station license in the V-band to reflect the substitution of
New Globalstar for GLP as the applicant, and request an exemption from
Section 25.116(c) of the Commission rules in order to preserve the
filing status of this pending application following consummation of the
proposed transaction.

#### THE PARTIES

GLP manages the international MSS business for the Globalstar system and
owns directly or through subsidiaries most of the facilities used in the
business. GLP and three wholly owned subsidiaries filed for Chapter 11
bankruptcy protection on February 15, 2002. On April 25, 2003, the U.S.
Bankruptcy Court in Delaware ("Bankruptcy Court") approved an investment
transaction pursuant to which GLP's assets will be transferred to New
Globalstar, which is a new newly formed Delaware corporation established
to acquire GLP's assets and facilitate the emergence of the Globalstar
system from bankruptcy.

Under the proposed transaction, ICO, a Delaware corporation, will own 54
percent of the equity interests and 80 percent of the voting interests
in New Globalstar. GLP initially will own the remaining 46 percent of
the equity interests and 20 percent of the voting interests in New
Globalstar. GLP's ownership interests in New Globalstar ultimately will
be distributed to the GLP creditors in proportion to the value of their
allowed claims against the estate.

ICO, through a subsidiary, is authorized under U.K. law to construct,
launch, and operate a 12-satellite, NGSO MSS system. In addition, ICO
Satellite Services G.P., another ICO subsidiary, holds a letter of
intent authorization from the Commission, reserving certain frequencies
for the provision of MSS in the United States.

The Applicants state that the proposed transaction will offer
substantial public benefits without creating any countervailing harms.
Specifically, the Applicants assert that the proposed transaction will:
(1) allow the Globalstar system to emerge from bankruptcy and facilitate
productive use of assets that otherwise would become idle; (2) provide
for an infusion of capital and stimulate additional investment in the
Globalstar system; (3) foster vigorous MSS competition by bolstering the
commercial viability of the Globalstar system; and (4) ensure the
continued provision of Globalstar services, thus benefiting the public
worldwide, particularly those in rural and underserved areas, who rely
on the availability of MSS to provide telecommunications service and to
facilitate emergency relief, humanitarian efforts, and economic
assistance. The Applicants further maintain that the proposed
transaction will not harm competition in any relevant market.

**REQUEST FOR DECLARATORY RULING ALLOWING**

**INDIRECT FOREIGN OWNERSHIP**

The application for transfer of control of the common carrier blanket
MET license held by Globalstar USA, LLC includes a request for
declaratory ruling, pursuant to Section 310(b)(4) of the Act, that it
will not serve the public interest to prohibit foreign investments in
New Globalstar, the transferee, in excess of the statutory 25 percent
foreign ownership benchmark. Such foreign investments would include
foreign ownership interests held through ICO and GLP, as well as by
foreign GLP creditors who will receive their ownership interests from
GLP in proportion to the value of their allowed claims against the
estate. The Applicants assert that, at the end of the first and second
stage of the proposed transaction, foreign investors will hold more than
25 percent of the equity and voting interests in New Globalstar. The
Applicants also state that the majority of those interests will be held
by foreign investors with home markets in the United States or WTO
Member countries. Foreign investors from non-WTO Member countries will
own less than 25 percent of the equity and voting interests in New
Globalstar at the end of the second stage of the proposed transaction,
according to the Applicants. The request for declaratory ruling under
Section 310(b)(4) of the Act has been assigned File No.
**ISP-PDR-20030527-00018**.

##### ASSIGNMENT AND TRANSFER OF CONTROL APPLICATIONS

Listed below is a non-exhaustive list of the authorizations and license
applications involved in this transaction. Interested parties should
refer to the applications filed in **IB Docket No. 03-136** for a
complete listing of authorizations and license applications.

#### 

#### SECTION 310 APPLICATIONS

##### Part 25 - Satellite Services (Space Station)

The following application for consent for assignment of a space station
license from LQL to New Globalstar has been filed and found, upon
initial review, to be acceptable for filing:

[File No.]{.underline} [Licensee]{.underline} [Call Sign]{.underline}

SAT-ASG-20030527- 00095 L/Q Licensee, Inc. S2115

##### Part 25 - Satellite Services (Earth Station)

The following applications for consent for transfer of control of eight
earth station licenses and a blanket MET license from GLP to New
Globalstar have been filed and found, upon initial review, to be
acceptable for filing:

[File No.]{.underline} [Licensee]{.underline} [Call Sign]{.underline}

SES-T/C-20030527-00700 Globalstar USA, LLC E970199, E000342, E000343

E000344, E000345

SES-T/C-20030527-00701 Globalstar Caribbean Ltd. E990335, E990336,
E990337

SES-T/C-20030527-00699 Globalstar USA, LLC E970381

#### INTERNATIONAL SECTION 214 APPLICATIONS

**Part 63 - International Service**

The applications listed below for consent to transfer control of
international Section 214 authorizations from GLP to New Globalstar have
been filed and found, upon initial review, to be acceptable for filing:

[File Number]{.underline} [Authorization Holder]{.underline}
[Authorization]{.underline}

ITC-T/C-20030529-00266 Globalstar USA, LLC ITC-214-19990728-00484

Globalstar USA, LLC ITC-214-19991229-00795

Globalstar USA, LLC ITC-214-20000615-00356

#### AMENDMENT TO PENDING LICENSE APPLICATION

##### Part 25 - Satellite Services (Space Station)

The following amendment to the pending application of GLP for a space
station license to reflect the substitution of New Globalstar for GLP as
the applicant, following consummation of the proposed transaction, has
been filed and found, upon initial review, to be acceptable for filing:

[File No.]{.underline} [Applicant]{.underline} [Call Sign]{.underline}

SAT-AMD-20030527-00096 Globalstar, L.P. S2295

#### GENERAL INFORMATION

The assignment and transfer of control applications identified herein
have been found, upon initial review, to be acceptable for filing. The
Commission reserves the right to return any assignment or transfer of
control application if, upon further examination, it is determined to be
defective and not in conformance with the Commission's rules and
policies. Final action will not be taken on the applications earlier
than 31 days following the date of this Public Notice. Interested
parties may file comments or petitions to deny on or before July 14,
2003. Oppositions or responses may be filed no later than July 24, 2003.
All filings concerning any or all matters in this Public Notice should
refer to **IB Docket No. 03-136**.

Interested parties may file comments as indicated above and are
encouraged to file comments using ECFS. *See Electronic Filing of
Documents in Rulemaking Proceedings*, 63 Fed. Reg. 24,121 (1998).
Comments filed through the ECFS can be sent as an electronic file via
the Internet to \<http://www.fcc.gov/e-file/ecfs.html\>. Generally, only
one copy of an electronic submission must be filed. In completing the
transmittal screen, commenters should include their full name, Postal
Service mailing address, and the applicable docket or rulemaking number.
To receive filing instructions for e-mail comments, commenters should
send an e-mail to ecfs@fcc.gov, and should include the following words
in the body of the message, "get form \<your e-mail address\>." A sample
form and directions will be sent in reply.

Parties submitting paper filings must file an original and four (4)
copies of all pleadings, in accordance with Section 1.51(c) of the
Commission's Rules, 47 C.F.R. § 1.51(c) Filings can be sent by hand or
messenger delivery, by commercial overnight courier, or by first-class
or overnight U.S. Postal Service mail (although we continue to
experience delays in receiving U.S. Postal Service mail).

The Commission\'s contractor, Vistronix, Inc., will receive
hand-delivered or messenger-delivered paper filings for the
Commission\'s Secretary at 236 Massachusetts Avenue, N.E., Suite 110,
Washington, D.C. 20002. The filing hours at this location are 8:00 a.m.
to 7:00 p.m. All hand deliveries must be held together with rubber bands
or fasteners. Any envelopes must be disposed of before entering the
building. Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive,
Capitol Heights, MD 20743. U.S. Postal Service first-class mail, Express
Mail, and Priority Mail should be addressed to 445 12th Street, SW,
Washington, D.C. 20554. All filings must be addressed to the
Commission\'s Secretary, Office of the Secretary, Federal Communications
Commission.

**In addition, one copy of each pleading must be sent to each of the
following**:

The Commission's duplicating contractor, Qualex International, Portals
II, 45 12th Street, S.W., Room CY-B402, Washington, D.C. 20554; e-mail:
[qualexint@aol.com;]{.underline} facsimile: (202) 863-2898; phone: (202)
863-2893.

(1) Breck Blalock, Policy Division, International Bureau; via e-mail:
    breck.blalock@fcc.gov, or by facsimile: (202) 418-2824.

(2) Susan O'Connell, Policy Division, International Bureau; via e-mail:
    susan.oconnell@fcc.gov, or by facsimile: (202) 418-2824.

(3) Stephen Duall, Satellite Division, International Bureau; via e-mail:
    stephen.duall@fcc.gov, or by facsimile: (202) 418-1414.

(4) JoAnn Lucanik, Satellite Division, International Bureau; via e-mail:
    joann.lucanik@fcc.gov, or by facsimile: (202) 418-1414.

(5) Neil Dellar, Transaction Team, Office of General Counsel; via
    e-mail: neil.dellar@fcc.gov, or by facsimile: (202) 418-7540.

Copies of the application and any subsequently-filed documents in this
matter may be obtained from Qualex International, in person at 445 12th
Street, S.W., Room CY-B402, Washington, D.C. 20554, via telephone at
(202) 863-2893, via facsimile at (202) 863-2898, or via e-mail at
[qualexint@aol.com]{.underline}. The applications and any associated
documents are also available for public inspection and copying during
normal reference room hours at the following Commission office: FCC
Reference Information Center, 445 12th Street, S.W., Room CY-A257,
Washington, D.C. 20554. The applications are also available
electronically through the Commission's Electronic Comment Filing System
(ECFS) and the International Bureau Electronic Filing System, which may
be accessed on the Commission's Internet website at
\<[http://www.fcc.gov](http://www.fcc.gov/)\>, and the FCC\'s
Transaction Team website at \<<http://www.fcc.gov/transaction>\>.

-FCC-