TS News - Boeing To Build Teledesic Satellites

• from: owner-ts-news@tele-satellite.com
• Date: Wed, 30 Apr 1997 13:03:41 +0900

TELE-satellit News, 30 April 1997

Boeing To Build Teledesic Satellites
  NEW YORK, New York, USA, 97/04/30 (SatND) -- In order to get their
satellite-based "Internet-in-the-Sky" by the name of Teledesic up and
running, billionaires Craig McCaw and William Henry ("Bill") Gates wiII
need 840 satellites -- and some investors. Today, Teledesic has taken a
great step forward in finding a prime contractor and an investor. The
Boeing Company, the world's largest aerospace company, will become an
equity partner in Teledesic and serve as prime contractor for the company's
global, broadband satellite system. The estimated contract value will be
US$9 billion.

  Boeing will invest up to $100 million for 10 percent of the current
ownership of Teledesic, a private company whose primary investors are
telecommunications pioneer Craig McCaw and Microsoft Chairman Bill Gates.
As the prime contractor, Boeing will lead an international effort to
design, build and launch the Teledesic Network, which will provide
world-wide "fibre-like" access to telecommunications services such as
broadband Internet access, videoconferencing and interactive multimedia.
Service is targeted to begin in 2002.

  The announcement comes on the heels of the Federal Communications
Commission's March 14 approval of Teledesic's license to build and operate
the telecommunications network. Teledesic had stated previously that the
FCC license was a necessary first step before entering into commitments
with industrial, service and investment partners.

  By: Peter Klanowski

(c)TELE-satellit 1997. All rights reserved.

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