WASHINGTON-Mobile Communications Holdings Inc. told federal regulators last week it has more than $650 million in financial commitments to operate the Ellipso global pocket telephone satellite system.
In January 1995, the Federal Communications Commission found MCHI financial qualifications lacking but gave the firm time to shore up its application. MCHI has challenged the finding in court.
MCHI, which pegs first-year startup costs at $564 million, said it has backing from investors in the United States, Israel, Egypt, South Africa and Australia.
At the time it deferred action on MCHI’s filing, the FCC granted big low-earth-orbit satellite licenses to Motorola Inc., TRW Inc. and Loral Corp. Constellation Communications Inc. also is seeking a big LEO permit.
The LEO systems, which will circle the planet with small, low-power satellites of varying numbers and operate at 1.6/2.4GHz, will revolutionize communications by virtue of their global coverage. Much of the world has little or no telecommunications capability.
Still, LEO technology is untested and the networks will require capitalization in the billions of dollars. In addition, it is unclear what the market is for global wireless service and how many competitors, if any, the market can accommodate.
In Europe, a spinoff of the International Mobile Satellite Organization, ICO Communications Ltd., also is pushing a global pocket phone satellite system.
“Grant of a license to MCHI would serve the public interest and further important national policies including those designed to promote small business and entrepreneurial ownership of telecommunications facilities which, in turn, promotes U.S. high technology leadership and employment; technological innovation and competition in the global marketplace; and telecommunication infrastructure development worldwide,” said MCHI, asking the FCC for expeditious consideration of its application.
