Matt Desch: Well, first of all, what they are doing is sort of utilizing terrestrial spectrum, expensive terrestrial spectrum in places where it’s not approved and hasn’t been allocated, et cetera. And specifically, that’s something that hasn’t been approved by regulators and for which there will be a lot of, I think, lawsuits and other things to try to block it from people who don’t have the opportunity using that spectrum. And I think there’s a lot to play out over the coming years. As a result of that, those are going to be highly regional kind of offerings at best. And really our satellite system isn’t equipped or planned to be able to kind of reuse terrestrial spectrum without — well, even — it wouldn’t even be software.
It would require hardware development and new satellites launched. And we have no interest in doing that. As I said, I’m a little skeptical about the business case for that anyway, for those people who have to do that and maintain the satellite systems that they have to do it. So I’m more interested in using MSS spectrum. It’s globally approved, it’s allocated, it can be employed without regulatory requirements. It keeps our value proposition. That’s always been one of the reasons we’ve been successful is that we — that any customer who uses a product on ours doesn’t have to worry about any partner about where their products are deployed in the world. It’s an easier sell to the end consumer that they can use it anywhere as opposed to only in certain locations for certain things.
So on that basis, I’m really not very interested in sort of the terrestrial reuse model at all. I think the L and F Band, MSS model is really kind of the longer-term view, as to whether we need more spectrum for the future for our next-generation, we have plans right now that reuse our existing spectrum in a next-generation system that we think will add lots of capacity as we launch a next-generation system out in the 2030s and 2040s, that will do our — so we don’t necessarily need new spectrum. If it became available to us, and everybody who has it today believes it’s extremely valuable somehow. So we’ll see how that really plays out. They got it for free and they’re hoping to make money on sort of it. And I don’t see that that’s really right now that there are anyone that’s sort of offering to partner or sell or lease spectrum at kind of — any kind of what would make any kind of sense.
So right now, we’re not necessarily planning to do that, but we’ll keep our eyes open for something where there might be a more reasonable approach available to us.
Louie DiPalma: That makes sense. And one other, the iPhone 14, I think debuted in September 2022 with satellite, and it’s been in the market for a year-and-a-half now. And the iPhone 15 came out a year later with satellite. Has there been any impact from the iPhone, Globalstar partnership on your consumer IoT business or your commercial voice business that you’ve been able to discern?
Matt Desch: Absolutely none, to be honest with you. It seems to sort of been absorbed. I think obviously, I think it had an effect that why a proprietary D2D solution that we had with Qualcomm sort of didn’t take off more quickly because even the smartphone manufacturers really weren’t seeing market share movement as a result of the capability. So, yes, it also said that it looks like, I think I also deduced that it means it’s going to take a little longer for sort of an effect of these solutions to really maybe impact the market at all right now, because we’re not really seeing that much of an impact right now on consumer products of any sort, probably saw bullet had challenges. They put a product in the market and didn’t succeed. So it’s really not making much move in terms of anything that we can discern.
Operator: Our final question today comes from Hamed Khorsand with BWS Financial. Please go ahead.
Hamed Khorsand: Hey, good morning. Just first off, could you talk about why you’re spending more on R&D? I think that was a topic you had about [Technical Difficulty] it seems like you’re doing it again this year. Is it competitive? Are you fearing that the market’s moving away from you because it feels like your capital structure is changing as well, your operating structure.
