TO ALL: ECHO in LEO business?
The following is from SkyReport:
EchoStar Stepping Into LEO Satellite Business
Following the successful launch of its third broadcast satellite on
Sunday,
and with preparations for a fourth launch in 1998, EchoStar's next step
in space may be involvement with a low-earth-orbit satellite system.
E-SAT, a proposed LEO system jointly owned by DBS Industries and
EchoStar, is awaiting licensing from the Federal Communications
Commission to construct and launch its roving satellite constellation.
The effort took a step closer to fruition after DBSI announced it will
retire debt previously issued to EchoStar for around $4.64 million. In
exchange for EchoStar's retirement of the debt, DBSI transferred back
to EchoStar 270,414 shares of EchoStar Class A common stock valued
at approximately $4.480 million in addition to $936,000 cash for
accrued interest owing on the debt and fees related to the transaction.
"Repayment of debt to EchoStar prepares the way for DBSI to enter
into the next phase of our business plan - the deployment of a
low-earth-orbiting satellite network to provide low-cost, automated data
services worldwide through E-SAT," said DBSI President Fred
Thompson.
EchoStar shares were held as security for the debentures and were
received as a result of EchoStar's acquisition of Direct Broadcasting
Satellite Corporation from DBSI, which was completed Jan. 8.
E-SAT was part of a joint proposal recently signed by all LEO
applicants which was filed with the FCC on Sept. 22. "This proposal
requests that the FCC adopt the frequency spectrum sharing plan
agreeable to all applicants," Thompson said, "and we believe this
industry-developed consensus agreement paves the road to fast track
the licensing process."
A day after the launch of EchoStar III from Florida, company shares
closed up 1/4 to $23.88. |
