NEW SKYBRIDGE CEO BELIEVES COMPANY IS ON RIGHT TRACK
Skybridge hasn’t changed plans to develop broadband satellite network but is pressing forward with new business plan that focuses on leased capacity on existing geostationary satellites rather than building new ones for proposed 80-satellite LEO system, new Pres. Karl Savatiel told us Tues. It was among first public comments for Savatiel, who replaced Pascale Tourisse last month. Tourisse left Skybridge to become pres. of Alcatel. Savatiel denied Jan. 3 report in Wall St. Journal that startup broadband company had shelved plans to develop $6 billion broadband network: “There was no announcement on our part. We want to clarify that.”
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Savatiel said Skybridge was continuing with strategy “adopted with financial partners” last Feb. (CD Feb 23 p3). Financial concerns about weak satellite telecom network continue to be major problem throughout industry, he said: “The prudent business decision was to stop development of our system rather than continue to build. Given the economic downturn, things weren’t going to change for a year or 2.” He said several satellite projects had been delayed or placed on hold because of financial problems throughout industry. “Not to build was a hard decision, but a pragmatic one,” Savatiel said. Attorney Phil Spector said: “The FCC process to obtain license is moving ahead. The arrival of Karl Savatiel is affirmation of that commitment and we've told the FCC that. This project has some legs and it’s going to go the whole distance.”
Company wants to take advantage of “the opportunities and skill” Skybridge has in broadband area, Savatiel said. He said efforts would provide “better understanding of the potential of major applications that would lend themselves to broadband and equipment suppliers.” He said relationships established by Alcatel in DSL market also would play major role. Skybridge hopes to sign first contracts in first quarter, he said: “We have a lot of interest. We are working on one large telco and looking at others.” He promised Skybridge “clients will have a competitive advantage,” but “network management tools that handle satellites need to be modified” to make system work effectively.
Savatiel said his management experience at Lockheed Martin Global Telecom and Astrolink would provide him with road map to success: “My challenge is to go out there and demonstrate that satellite broadband works. I'm a hard and fast believer in satellite broadband and time to market. That was the issue with some of these systems” that failed. Unified standard is key to efforts for satellite broadband operators, Savatiel said: “GEO guys aren’t standing still. They are taking advantages in terminal design and terminal capability. If we can get the industry working on a single standard, we can get the volume to drive prices down and it will become cost-effective alternative” to wired companies.