ORBCOMM focuses on Machine-to-Machine (M2M) communications and, through the use of global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure, ORBCOMM’s two-way data communications products and services track, monitor, and control mobile and fixed assets in four core markets: commercial transportation; heavy equipment; industrial fixed assets; and marine/homeland security. The Company has just announced that the U.S. Coast Guard has selected the high usage option for Automatic Identification System (AIS) data from the AIS concept demonstration satellite under its agreement with ORBCOMM. ORBCOMM will also modify the AIS satellite and ground software and provide additional technical support to the U.S. Coast Guard. In total, these amendments add almost US$500,000 in revenue over the next 12-months.

ORBCOMM operates 29 satellites in six orbital planes. This provides worldwide coverage. These satellites are relatively small in size, weighing less than one hundred pounds and measuring only 41-inches in diameter and 6-inches in height before deployment. These satellites do not require a propulsion system to maintain them in the appropriate orbit, and they have significantly lower power requirements, as compared to geostationary satellites. Each satellite is equipped with a VHF and Ultra High Frequency, or UHF, communication payload capable of operation in the 137.0-150.05 MHz and the 400.075-400.125 MHz bands. The use of the system uplink (Earth-to-space) spectrum is managed by an on-board computer that employs the ORBCOMM-pioneered Dynamic Channel Activity Assignment System, or DCAAS, which continuously scans the authorized spectrum, identifies frequencies in use by other users of the frequency band, and assigns subscriber communication uplink channels to minimize interference. DCAAS changes the uplink frequency at least every 15 seconds, which the system to coexist with the current users of the VHF frequency band, and limits interference to acceptable levels. The gateway earth stations and the subscriber communicators communicate with the satellites in the same VHF band. This eliminates design complexity, as well as the associated bulk, power, and cost of supporting multiple communication equipment on a single satellite. The satellites also contain packet-routing communications capability, including a limited store-and-forward capability.