[xDSL Competition: Teledesic (?)]
Good Morning, Pat!
It's a sunny, beautiful day here in Central Florida, made better by the fact that I've taken the day off from work.
I was suprised this morning to find that nobody on the thread mentioned the big news about Teledesic. CNBC even devoted a half-hour to the deal last evening. It has obviously received attention due to the big players involved. There was no mention in the segment about Teledesic's potential competition (i.e: xDSL technology).
Personally, I don't feel it is too much of a threat to xDSL, but who knows how the market will take it...
Gotta run - more later!
Steve
[A/P ARTICLE FOLLOWS]
Boeing to join Net satellite venture
SEATTLE - Boeing Co. Tuesday said it would invest $100 million for a 10% stake in Teledesic Corp., and will lead the company's $9
billion project to use satellites to bring the Internet to all corners of the globe.
Teledesic's two primary investors are Microsoft Corp. Chairman Bill Gates and Craig McCaw, who sold McCaw Cellular
Communications to AT&T Corp. in 1994 for $11.5 billion.
Teledesic eventually plans to put 840 satellites in orbit, forming a network that will allow quick access to telecommunications services
almost anywhere on the planet. Service is set to begin in 2002.
The system would be capable of high-speed data transmission, enabling Internet users to download information and graphics far faster
than today's fastest modems. The system also would allow global video teleconferencing, paging, faxing and voice communications.
As prime contractor, Boeing will lead the effort to design, build and launch the satellite network. The estimated contract value is $9 billion.
"Boeing shares Teledesic's vision of building a global satellite network that will extend the most advanced information services to the far
reaches of the Earth," Boeing Chairman Phil Condit said.
Teledesic, a private company based in the Seattle suburb of Kirkland, said it selected Boeing in part because of the company's
experience in space endeavors and in managing large, complex projects.
Boeing is the prime contractor for the U.S. space station and has a long history in space, including building the Minuteman missile and the
Saturn booster that took astronauts to the moon.
It recently acquired Rockwell International Corp.'s aerospace and defense business, and plans to merge with McDonnell Douglas.
Boeing's Sea Launch is a joint venture with several companies to launch commercial satellites from a floating sea platform.
The boards of directors of both companies have approved Tuesday's deal. The Federal Communications Commission on March 14
approved Teledesic's license to build and operate the satellite system.
Alan Mulally, president of Boeing Defense and Space Group, said he had no estimates yet on how many Boeing employees would work
on the project, or where the work would be performed.
No decisions have been made on the satellites' design or on the rockets that would be used to launch them. However, the satellites' small
size and their planned low orbits give Boeing a range of options for getting them into space, he said.
Because of their size, the satellites probably could be launched in clusters on existing large boosters, he said.
By The Associated Press |
