Credit: Globalstar
Update Nov. 7: This story was updated to reflect comment from MDA Space.
TAIPEI — The contracting team of MDA Space and Rocket Lab USA has encountered repeated delays in the construction of 17 mobile communications satellites for Globalstar Inc. and will be liable for liquidated damages under the contract, Globalstar said.
The satellites were originally scheduled for launch on two SpaceX Falcon 9 rockets in 2025. Globalstar now expects neither to occur before sometime in 2026, with the first by mid-year.
Globalstar officials in recent months have sought to downplay the delays by referring to the company’s February 2022 contract announcement, which was vague about the delivery date but said all satellites were expected to be in service in 2025.
Adding 17 satellites to refresh Globalstar’s current constellation was part of an agreement between Globalstar and Apple. Apple is financing 95% of the cost of the program.
As recently as the company’s Nov. 6 conference call, Globalstar Chief Executive Paul Jacobs, asked about the two planned SpaceX launches of the 17 satellites, said only: “We have not given any new indications on when the launches are going to occur.”
Rebecca S. Clary. Credit: Globalstar
Globalstar Chief Financial Officer Rebecca S. Clary said: “For the replacement satellites that will be launched in two batches, we are working with SpaceX to confirm an updated launch window in the first half of 2026.”
With 2025 drawing to a close and neither of the launches on SpaceX’s near-term manifest, Globalstar apparently felt backed into a corner and disclosed the delays in a Nov. 6 filing with the US Securities and Exchange Commission (SEC).
The company said that in August 2023 and again in June of this year, it entered into launch agreements with SpaceX to launch the 17 satellites on two Falcon 9 rockets, with the June agreement extending the launch window to reflect the delivery delay.
The revised agreement called for the first launch to occur late this year, with the second in 2026. This is no longer tenable.
Under the updated schedule, which may or may not reflect a firm satellite delivery date by MDA/Rocket Lab, Globalstar said it was “working to establish an updated launch window for the first set of replacement satellites that may occur in the first half of 2026,” with the second launch still holding to the 2026 schedule as specified in the June agreement.
Globalstar said that as of Sept. 30, it had incurred costs of $247.5 million as part of the $327 million contract with MDA, and $63.2 million in milestone payments to SpaceX.
MDA hired Rocket Lab USA to build the payloads under a $143 million contract.
As of September 30, 2025, in connection with constructing and preparing for the launch of the replacement satellites, the Company has incurred $247.5 million and $63.2 million in capital expenditures for milestones completed under these agreements with MDA Space and SpaceX, respectively.
“The Company is contractually entitled to receive liquidated damages from MDA Space based upon the terms of the satellite procurement agreement due to MDA Space’s failure to meet delivery milestones,” Globalstar said. “The parties are discussing this matter. Any damages would reduce amounts owed to MDA Space when realized or realizable.”
The February 2022 was notable for MDA’s selection of Rocket Lab as the provider of the satellites’ skeletal structure, or bus. It was a breakout deal for Rocket Lab in its plan to move up the value chain from component provider to major system contractor.
Rocket Lab in January 2024 confirmed its ambitions by winning a $515-million prime contract with the US Space Development Agency (SDA) to build 18 Tranche 2 Transport Layer-Beta data-tansport satellites for SDA’s missile-defense constellation. The satellites are to be delivered in 2027.
““This contract marks the beginning of Rocket Lab’s new era as a leading satellite prime,” Rocket Lab Founder and Chief Executive Peter Beck said in a statement issued with the SDA contract announcement. “We’ve methodically executed on our strategy of developing and acquiring experienced teams, advanced technology, manufacturing facilities, and a robust spacecraft supply chain to make this possible.”
In a Nov. 7 response to Space Intel Report inquiries, MDA said:
“We are currently in discussions with Globalstar regarding the liquidated damages matter. Note that as is customary, our contracts with our supply chain also embed liquidated damages so we have recourse in the case of supply chain delays. We will provide a business update on our earnings call on November 14.”
MDA and Rocket Lab USA did not immediately respond to requests for comment Nov. 7. This story will be updated to include any statements they make.
MDA subsequently signed a second contract with Globalstar to build the company’s Gen 3 constellation to provide still-unspecified enhanced services compared to the existing network. This contract, valued at 1.1 billion Canadian dollars ($768 million) uses MDA’s new Aurora software-defined satellite design.
Credit: Globalstar Nov. 6, 2025, SEC filing
Globalstar on Nov. 6 reported a 5.5% increase in service revenue for the nine months ending Sept. 30, to $190 million; and a 21% increase in subscriber equipment sales, to $11.1 million. The IoT subscriber count increased by 6%, to 543,000.
Credit: Globalstar
Operating income more than doubled, to $7.8 million. The company reported cash of $346.3 million at Sept. 30, with capital spending during the period of $485.9 million.