425: Lynk Global Applauds FCC's Satellite-Direct-To-Phone Rulemaking, Citing \$325B+ Market Opportunity

Lynk Global commends the FCC for its new rules allowing satellites to connect directly to standard mobile phones, a move that could unlock a \$325B+ market.

Summary

• Lynk Global is praising the FCC's decision to allow satellites to connect directly to standard mobile phones.
• The company believes this ruling supports the growth of a \$325B+ market.
• Lynk's founders highlight their work in developing the technology to connect satellites to unmodified mobile phones.
• The FCC granted Lynk an experimental license in 2019, allowing them to prove the technology.
• Lynk was later granted what it believes to be the world's first commercial sat2phone license.
• Lynk is currently providing cell broadcast (emergency) alerts and two-way SMS messaging.
• The company plans to launch voice and mobile broadband services in the future.
• Lynk has regulatory approvals in at least 30 countries and is currently being deployed commercially based on more than 40 MNO commercial service contracts covering approximately 50 countries.
• Slam Corp., a special purpose acquisition company, intends to pursue investment opportunities with companies that have large and growing addressable markets, significant revenue growth, defensible business models and superior market share.
• Slam and Topco filed a registration statement on Form S-4 with the SEC on February 14, 2024, which includes a preliminary proxy statement/prospectus of Slam and a preliminary prospectus of Topco relating to the shares of common stock of Topco, par value \$0.00001 per share, to be issued in connection with the Business Combination.

Sentiment

Score: 8

Explanation: The document expresses a positive sentiment due to the favorable regulatory decision by the FCC and the potential for significant market growth for Lynk's technology.

Positives

• The FCC's decision validates Lynk's technology and market opportunity.
• Lynk has a first-mover advantage in the sat2phone market.
• The company has already secured regulatory approvals in multiple countries.
• Lynk has commercial service contracts covering approximately 50 countries.
• The company is expanding its services beyond text messaging to include voice and broadband.

Risks

• The business combination may not be successfully or timely consummated.
• Required regulatory approvals may not be obtained or may be delayed.
• The combined company may not be able to maintain its listing on Nasdaq.
• The business combination may disrupt current plans and operations.
• The anticipated benefits of the business combination may not be realized.
• There are uncertainties related to the costs of the business combination.
• Changes in laws or regulations could adversely affect the combined company.
• Economic, business, and/or competitive factors could adversely affect Slam and Lynk.
• Legal proceedings may be instituted against Slam, Topco or Lynk.
• Anticipated pro forma results and underlying assumptions may not be realized.
• Domestic and international political and macroeconomic uncertainty could adversely affect Slam and Lynk.
• The rollout of Lynk's business strategy may be delayed.
• Slam's public shareholders may request redemptions.
• Slam may not be able to issue equity or obtain financing in the future.
• Lynk's industry is subject to risks.
• The private placement financing may not be completed or may be completed with terms unfavorable to you.

Future Outlook

Lynk intends to launch voice and mobile broadband services in the future and continue expanding its global reach.

Management Comments

• Charles Miller, co-founder and CEO, stated, 'This is a good news story that highlights Americas continued role in developing and delivering technology that makes a difference in the lives of people around the world. We believe sat2phone technology has the potential to help pull the next billion people out of poverty by extending affordable access to mobile connectivity around the globe.'
• Tyghe Speidel, co-founder and CTO, continued, 'Todays announcement is directly connected to Lynks story.'
• Margo Deckard, co-founder and COO, concluded 'Most people did not believe this was possible. But the FCC gave Lynk an experimental license in 2019, and allowed us to prove we could connect a satellite to standard phones, without harmful interference.'

Industry Context

The FCC's decision is a significant step forward for the satellite communication industry, potentially opening up new markets and revenue streams for companies like Lynk. This ruling could spur further innovation and competition in the sat2phone space.

Comparison to Industry Standards

• Lynk's technology is unique in that it allows satellites to connect directly to standard mobile phones without any modifications.
• Other companies, such as AST SpaceMobile, are also working on satellite-to-phone connectivity, but their approaches may differ.
• The FCC's decision creates a framework for the sat2phone industry, which could benefit all players in the long run.

Stakeholder Impact

• Shareholders of Slam will vote on the Business Combination.
• Mobile network operators can partner with Lynk to expand their coverage and revenue.
• Subscribers will gain access to ubiquitous connectivity, especially in remote areas.
• Billions of people could benefit from affordable access to mobile connectivity.

Next Steps

• Slam's shareholders will vote on the Business Combination.
• Lynk will continue to deploy its technology commercially.
• Lynk intends to launch voice and mobile broadband services in the future.

Key Dates