Globalstar Satellites to Last Longer Than Expected
Bloomberg News
September 9, 1999, 11:55 a.m. PT
Globalstar Satellites to Last Longer Than Expected (Update1)
(Adds analyst comment in 4th paragraph; updates shares.)
New York, Sept. 9 (Bloomberg) -- Globalstar
Telecommunications Ltd., which plans to be the second satellite-
based telephone network, said its satellites will probably last
about 33 percent longer than the company originally forecast.
Globalstar expects its satellites to last 10 years, compared
to the seven-and-a-half years it predicted, Bernard Schwartz,
chairman and chief executive of both Loral Space & Communications
Ltd. and Globalstar, said to analysts at a closed meeting in
California. Analysts reported it and the company confirmed the
statement.
Globalstar, which is 45 percent-owned by Loral, is aiming to
be the first success in the developing satellite-telephone
market. Rivals Iridium LLC and ICO Global Communications Ltd.
filed for bankruptcy protection last month.
``It would be a positive development if the life of a
constellation (of satellites) were depreciated over 10 years as
opposed to seven because less costs would be depreciated each
year,' said Michael French, a satellite-industry analyst at ING
Furman Selz, who has a ``strong buy' rating on Globalstar.
``It's also beneficial because the constellation would need to be
replaced at a later date, therefore allowing the company to save
money.'
New York-based Globalstar expects its satellites to last
longer than anticipated because less fuel was used to launch its
satellites than was forecast, Globalstar spokesman Mac Jeffery
said. Satellite lifespans are determined by how much fuel remains
after they reach orbit. |
