Globalstar Contracts with Alcatel for New Satellites (12/4)

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Globalstar contracted with Alcatel Alenia Space to design, manufacture, and deliver a second-generation constellation of 48 low-earth-orbit (LEO) satellites. The total contract value is about $880 million. Globalstar will compensate Alcatel Alenia Space about $826 million for the design, development, and manufacture of 48 new satellites and $54.6 million for launch and mission operations support services. The contract value could be reduced by up to $37.3 million if Globalstar chooses to accelerate delivery of the constellation. The satellites are being designed with a life expectancy of 15 years, significantly longer than the design life of Globalstar's first-generation constellation. Globalstar anticipates the increased satellite lifespan will provide the company with a second-generation space segment through at least 2025.