As it prepares for the launch of the first batch of its second generation satellite constellation, MSS operator Globalstar has announced that it would relocate its corporate headquarters to Covington, Louisiana.
The move will particularly benefit…
As it prepares for the launch of the first batch of its second generation satellite constellation, MSS operator Globalstar has announced that it would relocate its corporate headquarters to Covington, Louisiana.
The move will particularly benefit Globalstar financially given the State’s more favourable tax structure and lower rental costs compared to its current Silicon Valley base. Globalstar also said that it would receive reimbursement of relocation costs plus a commercial lease subsidy for its new corporate headquarters.
There is also an operational element to the relocation being as Axonn, the satellite asset tracking and messaging products manufacturer that Globalstar acquired at the end of 2009 for up to US$18m, is based in Covington. Globalstar said that the subsequent vertical integration would enable it to improve the speed to market for new products.
In addition to shifting headquarters, the company’s product development centre, international customer care operations, call centre and other global business functions including finance, accounting, sales, marketing and corporate communications will also move to Louisiana. The company plans to maintain its network operations including its satellite and ground operations control centres in California.
Globalstar said that it expected to relocate and create close to 150 jobs in Covington by the end of 2011, increasing to 200 jobs by 2013 and a total of more than 490 by 2018.
Jay Monroe, executive chairman of Globalstar, commented: “Relocating to Covington will help dramatically reduce our operating costs as we execute our next generation strategic initiatives. The telecommunications industry is extremely competitive and we are seeing increased competition across the industry. We are positioning Globalstar for long-term success by lowering our cost of operations, improving revenue growth and speed to market for new products through vertical integration and through the introduction of new and innovative products developed in Louisiana.
“Thanks to LED’s (Louisiana Economic Development) progressive digital interactive media incentives and tax credits, Globalstar can expect to benefit immediately and on an annual basis well into the future. It boasts much lower taxes and employee cost of living compared with our former home in Silicon Valley.”
Peter Dalton, CEO of Globalstar, added: “This move also maximises the benefits of our recent acquisition of Covington based satellite asset tracking and messaging products manufacturer Axonn and creates in Globalstar the first and only vertically integrated mobile satellite company. Physically relocating our product team to work directly with the former Axonn engineers not only decreases our pre-production costs but it also will shorten the time to market for our company’s integrated wireless and satellite based products. We considered relocating our headquarters to numerous states but the overall advantages of moving here were simply too compelling to ignore.”
