For those of you holding G*:
-- Globalstar Announces Commercial Service in China; Satellite Telephone
Service to --
Become Available to Businesses
and Communities Nationwide
Business/Technology Editors
BEIJING, May 25, 2000 - Globalstar (NASDAQ: GSTRF), the global
mobile satellite telephone service, today announced the start of
commercial service in China, bringing portable, easy-to-use
communications services to vast reaches of the country outside the
range of existing cellular and wireline telephone systems.
CHINA SPACECOM, Globalstar's service provider partner in the
country, is initially providing mobile and fixed phone service,
including voice, voice mail and short messaging services, throughout
the northern half of China, from their gateway in Beijing. Two
additional gateways, to be built in Guangzhou and Lanzhou, will
provide coverage across the entire nation, urban and rural, when they
are completed early next year. Fax, Internet connectivity, and other
services are also to be introduced over the next several months.
"The introduction of service here brings a large and important
part of Asia under the Globalstar service umbrella," said Tony
Navarra, president of Globalstar, at the launch ceremony in Beijing.
"This new service will help meet the growing demand for wireless
telephony in rural Chinese locations, while allowing customers to use
the same phone in urban areas as well. It will also allow Globalstar
users from other countries to stay in touch while in China, within and
beyond current cellular telephone areas."
"Telecommunications is an integral part of the infrastructure
required to expand China's economic development, particularly in the
western regions, and to strengthen key industries," said Mr. Cui
Junfeng, President of CHINA SPACECOM. "Furthermore, this partnership
not only enhances communications within the country but also gives
connectivity to worldwide Globalstar service providers."
Globalstar multi-mode telephones are capable of operating in
analog, GSM, terrestrial CDMA and satellite modes. In areas with
cellular service, Globalstar phones operate in cellular mode at normal
cellular prices. Outside of cellular range, users can still stay in
touch over Globalstar's satellite network, which uses a reliable,
extremely clear Qualcomm CDMA signal. This multi-mode feature means
that users can continue to rely on their normal cellular provider,
using Globalstar service only when cellular service is not available.
Furthermore, a seamless roaming service is available across the
Globalstar worldwide network.
Car kits and marine kits also will be available soon to better
serve customers across markets such as maritime, oil and gas,
exploration, construction, search and rescue operations, agriculture,
and transportation.
CHINA SPACECOM will also be offering Globalstar fixed phones,
including payphone models, which can provide telephone services to
offices, government installations, and entire communities in remote
areas where even hardwire telephony is limited or simply unavailable.
Currently, China's telephone penetration rate is less than ten percent
for both mobile and fixed-line service -- that is, one phone line for
every ten people in the country. China's inland and rural areas have
particularly limited access to telephones, and it is estimated that
500,000 rural communities require improved telecommunications
services.
In anticipation of the demand for this new service, CHINA SPACECOM
has already doubled its original order of Globalstar phones to 10,000
units, even before initiation of service, and is offering various
promotional packages including telephone leasing and pre-paid plans,
as well as free trade-in programs for Iridium customers.
China is the most recent addition to Globalstar's worldwide
network, which currently offers full commercial service in 38
countries across six continents, served by 16 gateways. The company
plans to increase this to nearly 60 countries by June 2000.
Globalstar, led by founding partner Loral Space & Communications,
is a partnership of the world's leading telecommunications service
providers and equipment manufacturers, including co-founder Qualcomm
Incorporated, Alenia, China Telecom (HK), DACOM, DaimlerChrysler
Aerospace, Elsacom (a Finmeccanica Company), Hyundai, TE.SA.M (a
France Telecom/Alcatel company), Space Systems/Loral, and Vodafone
AirTouch. For more information, visit Globalstar's web site at
www.globalstar.com.
Loral Space & Communications (NYSE:LOR) is the managing partner
and, at 40 percent, is the largest equity owner of Globalstar. Loral
is a high technology company that concentrates primarily on satellite
manufacturing and satellite-based services, including broadcast
transponder leasing and value-added services, domestic and
international corporate data networks, global wireless telephony,
broadband data transmission and content services, Internet services,
and international direct-to-home satellite services. For more
information, visit Loral's web site at www.loral.com.
CHINA SPACECOM, founded on May 4, 1998, is a partnership of China
Telecom, CHINASAT and China Space Technology Group. It has exclusive
rights to provide mobile satellite telecommunications services in
China. With this groundbreaking agreement, CHINA SPACECOM becomes the
exclusive service provider for Globalstar in China and is responsible
for gateway operations and customer development. As roaming agreements
are concluded with China Mobile, it too will offer both cellular and
satellite services, as well as supporting the sale of handsets.
--30--jl/ny*
CONTACT: Beijing:
Sherry Ma
Patrick Horgan
(86-10) 6505-5127
New York:
Mac Jeffery 1-212-338-5383 |
