Teledesic Signs Major Launch Contract with Lockheed Martin, Completes System Agreement with Motorola
Friday July 9, 8:26 am Eastern Time
Company Press Release
BELLEVUE, Wash.--(BUSINESS WIRE)--July 9, 1999--In an important program
milestone, Teledesic LLC, which is building a global, broadband Internet-in-the-Sky, today
announced it has completed a major launch contract with Lockheed Martin and signed a system agreement with Motorola to
build Teledesic's satellite communications network.
Major Launch Contract
Teledesic has signed a contract with Lockheed Martin, one of the world's leading aerospace companies and premier launch
providers, to use two heavy-lift launch vehicles, the Proton M and the Atlas V, to launch a significant portion of Teledesic's
satellite constellation.
''Coupled with our completed and signed system agreement with Motorola, our launch contract with Lockheed Martin
positions Teledesic on a strong and solid course to realize our vision of providing high-quality, global broadband network
services,'' said Bill Owens, Teledesic's co-chief executive officer and vice chairman.
Lockheed Martin markets the Proton M and Atlas V through International Launch Services (ILS) and its contracting entities
Lockheed Martin Commercial Launch Services and Lockheed Khrunichev Energia International. ILS manages all tasks
associated with providing launch services on the Atlas and Proton launch vehicles, including mission management, contract
administration and other launch support.
''On behalf of Lockheed Martin and our Russian partners, we at International Launch Services are extremely pleased to be
selected as launch service providers for this important business,'' said ILS President Wilbur C. Trafton. ''Specifically, this
marks the first commercial sale of the Atlas V, as well as additional orders for the Proton M -- both anchors of our future
launch product offerings.''
The contract calls for three Proton launches and three Atlas launches, with options for five additional launches on each. Each
launch vehicle will carry multiple Teledesic satellites per mission. The financial terms of the agreement were not disclosed.
In addition to the Proton M and Atlas V vehicles, Teledesic is evaluating other launch vehicles from leading providers around
the world.
Completed System Agreement
Teledesic has completed and signed its system agreement with Motorola, the company's prime contractor, after more than a
year of close collaboration and detailed design work. Motorola is responsible for leading the engineering and construction of
the Teledesic Network, the world's first advanced telecommunications network designed to provide high-speed data
connections to businesses, institutions and individuals on a global basis.
The contract is contingent upon Teledesic's approval that the system meets its requirements following a final technical review
period, which is expected to be completed within three months. Details of the agreement and the enhanced system design will
be made public after Teledesic and Motorola have completed this high-level review and finalized the program's major domestic
and international subcontractors.
''The completion of our system agreement with Motorola moves Teledesic into its next important phase -- the actual
development of our system,'' Owens said. ''With Motorola leading our industrial team, we're confident we can tackle any
challenges ahead. Already, we're working with Motorola to bring together the best subcontractors from around the world.''
Merle Gilmore, president of Motorola Communications Enterprise, said, ''The signing of this agreement is further evidence of
Motorola's continuing commitment and confidence in the future of commercial satellite communication systems. The Teledesic
Network will have unique abilities to provide customers with complete end-to-end solutions on a global scale. As prime
contractor to the Teledesic Network, Motorola will form and lead a world-class team of international industrial partners with
proven experience in the design, construction and management of large networks.''
As a result of the completion of the system agreement, Motorola has made a $150 million cash payment to Teledesic. The
payment is part of Motorola's previously announced investment in the company. In addition, Teledesic has made a down
payment of $250 million to Motorola for its work as prime contractor.
$1.5 Billion Raised
Privately held Teledesic has made significant progress raising additional equity investments, bringing the total amount raised to
more than $1.5 billion. Telecommunications pioneer Craig McCaw and Microsoft founder Bill Gates are the company's two
primary founding investors. Strategic investors also include Motorola, Saudi Prince Alwaleed Bin Talal and The Boeing
Company.
''We have savvy investors who understand the unique merits of our business plan, including the differences between our
services and markets and those of others,'' Owens said. ''They also have a global perspective and understand that this is a
long-term undertaking that will help serve an unmet worldwide need for broadband services.''
Using a constellation of low-Earth-orbit satellites, Teledesic is the first licensed satellite communications network that will enable
affordable, worldwide access to ''fiber-like'' telecommunications services such as computer networking, broadband Internet
access and interactive multimedia. Teledesic will deliver broadband data and value-added services over a global network
optimized for the Internet Protocol that can guarantee end-to-end quality of service. Teledesic (pronounced ''tel-eh-DEH-sic'')
is a private company based in Bellevue, a suburb of Seattle.
Editors' Note: Teledesic and Internet-in-the-Sky are service marks of Teledesic LLC.
Contact:
Teledesic
Roger Nyhus, 425/602-6500
roger@teledesic.com
or
David Bowermaster, 425/602-6500
davidb@teledesic.com
or
Corporate Office
425/602-0000
info@teledesic.com
www.teledesic.com
or
ILS
Julie Andrews, 619/645-6470
julie.c.andrews@lmco.com
or
Motorola
Doug Towle, 480/456-7115
Doug_Towle-P29509@email.mot.com
Related News Categories: computers, internet, telecom
Help
Copyright © 1999 Business Wire. All rights reserved. |
