LOL thanks rd! By the way this came out this morning. Competition as well as customers?
Loral and Alcatel combine forces to deploy coordinated high-speed global
multimedia satellite networks
NEW YORK--(BUSINESS WIRE)--June 18, 1997--Loral Space & Communications
Ltd. (NYSE:LOR) and Alcatel Alsthom of France announced today that they
have formed a strategic partnership to jointly develop, deploy and
operate high-speed global multimedia satellite networks that will bring
high-bandwidth services to businesses and to consumers.
The agreement includes cross investments in Loral's geostationary (GEO)
satellite-based CyberStar(TM) project and Alcatel's low-earth-orbit
(LEO) satellite-based SkyBridge(TM) project. Each company will
participate in the development of the two projects, initially committing
to invest $30 million in the other's respective project. Each project
will be managed separately, but the two companies have agreed to
facilitate a coordinated approach to the two networks, including
integrated marketing.
Services will be introduced in the market through leased transponders in
early 1998 and subsequently through dedicated geostationary satellites
in 1999 and a constellation of LEO satellites in 2001.
Geostationary systems are well suited for the delivery of broadcast and
a large variety of asymmetric services. Low-earth-orbit systems, due to
their inherent very low propagation time, are very efficient for the
delivery of highly interactive services. LEO constellations provide
global coverage while geostationary systems are targeted to regional
markets.
By combining the strengths of the two systems, applications that require
real-time interaction and high-bandwidth capability will now be
possible. Businesses, for example, will benefit through expedited
communications and improved efficiencies. Interactive services like
desktop video-conferencing, community forums, etc., will be offered.
Customers will also have high-speed access to the Internet, databases,
audio, video, e-mail, and new data broadcasting multimedia information
services.
Loral and Alcatel see significant synergy in their respective offerings
for high-bandwidth services via satellite. As these systems come to
market, the complementary services provided by each will form the
backbone of a powerful communications network.
The $1.6 billion CyberStar system is a geostationary satellite-based
open protocol, digital telecommunications system that will offer a
variety of low-cost, high-speed, data and telecommunications services
worldwide from leased Ku-band satellite transponders beginning in late
1997, and through a dedicated constellation of geosynchronous Ka-band
satellites beginning in 1999.
CyberStar services will include low-cost, high-speed Internet access,
data broadcasting, broadband interconnection, intranet multicasting,
real-time streaming, and other data services that will be delivered to
consumers, businesses and private networks around the world through a
network of local and regional service providers.
CyberStar services will be delivered through a constellation of three
interconnected geostationary satellites positioned over the Americas,
Europe and the Middle East, and Asia. The satellites will integrate with
a network of terrestrial systems. The first of three CyberStar
satellites is scheduled for launch and operation in 1999.
The $3.5 billion SkyBridge system, based on 64 low-earth-orbit
satellites, will provide bandwidth on demand at very competitive prices
for residential and business customers, ranging from high-speed Internet
access to highly interactive services including worldwide enterprise
networking and video-conferencing.
SkyBridge is scheduled to enter service in 2001 with a half
constellation of 32 satellites, doubling capacity with an additional 32
as demand builds up and revenue starts flowing. The services of
SkyBridge will be delivered worldwide to final users through local and
regional service providers.
SkyBridge will operate in the Ku-band, while fully protecting other
users of that band such as geostationary satellite systems and
terrestrial services. The SkyBridge approach thus makes highly efficient
use of scarce spectrum resources.
Loral and Alcatel have a long history of fruitful cooperation in the
commercial satellite industry, including the development and deployment
of Globalstar (NASDAQ:GSTRF), an international partnership that will
provide a new generation of satellite-based telephony services worldwide
in late 1998.
Loral Space & Communications Ltd., headquartered in New York,
concentrates on satellite manufacturing and satellite-based services.
Its soon-to-be wholly owned subsidiary, Space Systems/Loral, is a
premier manufacturer of commercial communications and weather
satellites. Its Loral Skynet subsidiary is a leading U.S. satellite
communications service provider and the owner/operator of the Telstar
satellite network. Loral also manages and holds a 38% equity interest in
Globalstar.
Alcatel, part of the Alcatel Alsthom Group (US $31.17 billion revenue in
1996), is a worldwide company, currently working with partners in over
125 countries on projects which span the full spectrum of communications
systems. Alcatel is a system integrator in the telecommunications field.
It manufactures advanced switches, transmission systems, broadband
products, access products, radio mobile communications systems, business
systems, systems and products for space and defense and components. In
1996, these activities registered total sales of US $13.65 billion.
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Contact:
Jeanette Clonan
(212) 338-5658
David Benton
(703) 414-1045
SLM
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