ICO-TELEDESIC WILL USE FIRST LAUNCH TO TEST SYSTEM
ICO-Teledesic is about to emerge from mandatory quiet period with launch of its first satellite in June that will test communications systems for proposed voice and data service. Industry officials say ICO-Teledesic CEO Craig McCaw wants to be sure system works and prove to potential investors that service is viable before proceeding. System will be tested for months until McCaw is “satisfied no interference exists” that might hurt service, industry source said. New ICO spokesman refused to confirm launch plans, but admitted company would “make a statement” within next 30 days. Spokesman also said New ICO would “wait until the market firms up” before floating IPO.
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Signal quality has been major concern of McCaw since pulling ICO out of bankruptcy and merging it with Teledesic, sources said. Result has been “substantial modifications” of satellites now being built by Boeing Satellite Systems as part of $1.5 billion contract. Boeing referred question about launch to ICO, where spokesman said company would have no comment on plans. Launch of satellite would be first of 12 for ICO constellation. Last March, ICO lost first satellite on Sea Launch rocket. Insurance paid claim.
If company decides to use test system, it would mark change in strategy. ICO-Teledesic CEO Greg Clarke said in July he was against idea of using test satellites before launching service, saying: “It seems to me that if you are ready, you should move forward.” But concerns about signal dropoff from tropospheric interference have company rethinking position, source said. Reports also indicate that 3 other ICO-Teledesic satellites are almost completed and are to be placed in storage while new system is tested.
ICO-Teledesic plans to begin operations by 2003, but has yet to complete merger, which spokesman said was moving forward. Teledesic, which reduced staff in cost-cutting measure in Feb., must launch satellites by Sept. 2004 to maintain international regulatory rights to use radio spectrum that it has been allocated for use. Spokesman said there is no timetable for merger to be completed. “We are still waiting for shareholder and FCC approvals.”