Teledesic L.L.C. and Motorola Inc. last week announced they will become partners in the development and deployment of Teledesic’s global broadband “Internet-in-the-Sky” satellite communications system.
The Boeing Co., a leading aerospace company, and satellite manufacturer Matra Marconi Space, will round out the team of founding industrial partners, said Teledesic. Boeing, which had been prime contractor for Teledesic, reportedly will decrease its participation in the project to concentrate mostly on software and systems integration.
Motorola will be the new prime contractor for the team, which will combine the technical efforts currently underway on the Teledesic system with Motorola’s Celestri broadband satellite system.
“This is a natural fit of core competencies, know-how and vision,” said Christopher Galvin, chief executive officer of Motorola. “Rather than continuing along our separate paths, we’re combining our best efforts to deliver a new generation of broadband communications services to people around the world.”
Motorola is scheduled to receive a 26-percent stake in Teledesic for a combination of cash and the value of design and development work that will be redirected from Celestri to the new joint effort, said the companies. The Celestri project, which would have competed with Teledesic, will be incorporated into work on Teledesic, the companies said.
Both companies’ boards have approved the plan.
Craig McCaw, Teledesic’s chairman and co-chief executive officer, said he expects the partnership to speed the design and construction of the system, which is slated for launch in 2003. Motorola has significant experience building satellite communications systems, most notably with its Iridium L.L.C. project, which is expected to begin service this fall.
Founded in 1990, Teledesic is building a global, broadband “Internet-in-the-Sky” using a constellation of 288 low-earth-orbit satellites. The service will provide fixed access to telecommunications services such as broadband Internet access, videoconferencing, voice and other digital data.
The company’s vision is to provide the service to the rural poor through service providers in individual countries, although other market segments will be targeted, including corporate users, said the company.
Teledesic last year received a Federal Communications Commission license to provide the service. The company cleared its last significant regulatory hurdle when the International Telecommunication Union finalized its designation of international radio spectrum for use by non-geostationary fixed satellite services, such as those Teledesic will provide, said the company.
Teledesic will operate in the high-frequency Ka-band of the radio spectrum (28.6-29.1 GHz uplink and 18.8-19.3 GHz downlink).
Principal shareholders in Teledesic include McCaw and Microsoft Chairman Bill Gates. Earlier this year, Prince Alwaleed Bin Talal Bin AbdulAziz Alsaud of Saudi Arabia invested $200 million cash in Teledesic.
