McCAW UNIT NEW ICO SIGNS AGREEMENT WITH ELLIPSO
ICO-Teledesic Global, which controls satellite assets of Craig McCaw announced agreement Wed. with Ellipso to collaborate on building mobile satellite system, terms not announced. ICO- Teledesic subsidiary New ICO and Ellipso will work together on financial, business and regulatory issues related to deployment of satellite systems capable of providing wide range of advanced broadband services globally, they said. Companies said deal could lead eventually to strategic alliance and merger. “This is the first step” of Craig McCaw in “acquiring assets of Ellipso,” spokesman said.
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Meanwhile, New ICO in ex parte filing Fri. asked FCC to amend 2 GHz service rules to allow MSS operators to incorporate ancillary terrestrial component (ATC) into networks. ATC concept would enable companies such as New ICO to re-use their assigned frequencies terrestrially on ancillary basis to extend MSS availability to many indoor and urban areas where it’s unavailable with first-generation technology. Use of ATC would serve indoor and urban areas that weren’t serviced by satellite-only MSS networks. New ICO wants FCC to limit use of ATC “only after commercial operation of the satellite constellation has started.”
Company believes proposal would “solve chronic coverage problems” that have plagued MSS projects. It said it would improve service to rural and remote areas for commercial, military and public safety applications by improving quality and pricing. Satellite radio service proposal to use terrestrial repeaters has generated controversy.
Ellipso has struggled to find financing for its licensed service. Deal also expands options now available to ICO-Teledesic Chmn. McCaw in his effort to provide advanced voice and data services to users. Mobile satellite industry is in “dire straits,” New ICO spokesman said, calling it “mutually beneficial agreement.”
Mobile satellite industry “has failed spectacularly” in delivering promise to users, McCaw said. He said “creative changes in both the customer proposition and service-delivery philosophy are clearly necessary to deliver on the potential.” McCaw said he was “compelled by the scope” of market and importance of providing service to rural and remote areas. “We look forward to pooling our talents and creativity with our peers in the industry to overcome the challenges that have dragged down those who have launched before us.”
New ICO spokesman admitted company wanted to position itself as alternative to satellite telephone companies Iridium and Globalstar. “We want to work with our peers to build a viable system,” spokesman said: “We have learned from the mistakes of others.”