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To: djane who wrote (5864)	7/20/1999 12:24:00 PM
From: Jeff Vayda	Read Replies (1) \| Respond to of 29987

Djane, just for completeness: Bummer, looks like G* will be frozen out of the Indian sub-continent. VSNL had to ask the Indian government to increase it ICO stake. Jeff Vayda (from India on line, ciol.com The Indian Space Research Organisation (ISRO) and the Indian Department of Space have contributed significantly to the systems studies which led to the final choice of ICO's satellite constellation. (and from the Financial Press: financialexpress.com NEW DELHI, May 3: Videsh Sanchar Nigam Ltd has defended its decision to invest in the rights issue of global satellite telephony project, ICO Global, even as analysts express fear over VSNL's increasing exposure to the project. With the recent turmoil being reported at Iridium, doubts are being cast on the profitability of a satellite telephony venture. VSNL has sought government approval to invest $67.50 million as rights in ICO Global. It has already pumped in $150 million as equity in two stages and has by virtue of this, become the second largest shareholder in the consortium of telecom operators with a little over seven per cent stake. VSNL chairman-cum-managing director Amitabh Kumar, however, says "we want to retain our stake in the venture and leverage on the strengths of being a major shareholder and hence, our intention to invest a further $67.5 million. At the same time, if we get a good price in the market for selling part of this stake, we would do so. We are getting the shares at $5 each andthe market price is $8. Hence, it looks like a good investment decision. The board has approved it and we are awaiting the government nod for the rights issue, which closes for subscription on May 26." "We would like to be involved with one global and one regional satellite project as we feel that satellite telephony has tremendous potential," said Kumar. Analysts are a little sceptical of VSNL's additional investment plan. They say that the project, funded by over 60 telecommunication companies from 51 countries comprising 10 operational satellites and two in-orbit spares in medium earth orbit (MEO), has already been delayed by over one year which has led to a cost overrun. The ICO scrip, which was trading at $8, is expected to take a dip to $5-6 post rights issue and hence, may further erode the existing investments by VSNL in the venture, feel analysts. "The VSNL investment of $150 million at $10 per share in 1995 has seen a $30 million dip in value as the ICO scrip is currently trading at about $8per share on the Nasdaq," said an analyst. According to financial analysts, the new rights issue at $5 will push ICO share prices to $5-6 range in the near future. In fact, earlier this month ICO share price touched a new low of just over $6, they add. So far for its investment in ICO, VSNL has been allocated a satellite access node (SAN) of ICONET at Chattarpur in Delhi, the exclusive distribution rights for India and non-exclusive rights for certain neighbouring and Central Asian countries. Market analysts state that VSNL's only rationale for fresh investment may have been prompted by the fear of dilution of equity resulting in losing its representation on the ICO board. They say that many investors, however, have held on to their ICO board seat without having anywhere close to $150 million in the project. Further, with Iridium's chief executive officer recently resigning after a shaky start by the company, it has put a big question mark on the cost of multi-satellite-based GMPCS. One of theinitial investors in the ICO project, US-based Comsat, which invested the same initial level as VSNL, has already pulled out, say analysts. "VSNL, instead of putting all its eggs in one basket, should spread its risk," said another analyst. VSNL officials, however, maintain that there is merit in the investment and that they would urge the government to speed up clearances for the investment considering that not much time is left for the issue to close. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

To: djane who wrote (5864)	7/21/1999 1:05:00 AM
From: djane	Read Replies (2) \| Respond to of 29987

U.S. State Department Buys 1,000 Motorola Satellite Series Phones; Iridium System Used to Enhance Official Communications Around the World Business Wire - July 20, 1999 09:43 WASHINGTON, D.C.--(BUSINESS WIRE)--July 20, 1999--Motorola Commercial, Government and Industrial Solutions Sector Tuesday announced that the U.S. Department of State has placed an order for $1.4 million in Motorola Satellite Series(TM) 9500 portable phones and accessories for use with the Iridium Global Communications System. The U.S. Department of State and other U.S. government agencies plan to use the equipment to expand their communications capability and enhance their security posture abroad. These agencies implement the President's foreign policy agenda and provide important services to American citizens. The State Department maintains about 260 diplomatic and consular posts that also provide the necessary infrastructure for about 30 other U.S. Government agencies. Motorola's United States Federal Government Markets Division consulted with the Department of State in order to facilitate the sale of the Motorola Satellite Series portfolio of communications products and accessories. Motorola Worldwide Information Network Services (M-WINS), a business division of Motorola's Space Systems and Services Division, will provision the Iridium services through the U.S. government-dedicated Iridium gateway located in Hawaii. "The State Department's purchase of these phones and services is a significant endorsement for world's only global satellite-telephone system," said Bill Turkaly, Vice President and General Manager of Motorola's U.S. Federal Government Markets Division. "Considering the importance of the State Department's mission, Motorola is honored to play a role in meeting its unique communications needs," added Ron Taylor, vice president and general manager of Motorola's Space Systems and Services Division. M-WINS assists users in determining their requirements for subscriber equipment and service and, if necessary, offer customized communications solutions. M-WINS' customers receive global customer care support, technical assistance and access to the most current product releases. "The Iridium system delivers instant, reliable wireless telephone service around the world, and we are the only telecom provider that can do it independent of terrestrial networks," said Sue Kennedy, vice president of sales and marketing for Iridium LLC. "This unique competency can be vital to any global enterprise that has concerns about the reliability of local telephone networks in the event of a crisis. We are delighted that the U.S. State Department has recognized this and has chosen the Iridium technology to enhance its telecommunications capabilities worldwide." About Iridium Iridium LLC. became the world's first global satellite phone and paging company on Nov. 1, 1998. The network of Low-Earth Orbiting satellites, combined with terrestrial cellular systems, enables subscribers to communicate in remote locations around the world using one phone and pager, one phone number, and pay for it all through one monthly bill. Customers access participating local cellular networks when available and use the Iridium satellite network when outside terrestrial cellular coverage. Iridium North America is the sole owner and operator for Iridium services in North America. Iridium North America is actively selling services through integrated wireless service providers and distribution partners providing customers the ability for unique service that permits any type of telephone transmission - voice, paging, data and fax - to reach its destination virtually anywhere on Earth, at any time. Iridium North America is headquartered in Tempe, Ariz. and serves the United States, Bermuda, Guam and Puerto Rico. Iridium North America is backed by telecommunications leaders Motorola Inc., Sprint Corporation and Iridium Canada Inc. Iridium World Communications Ltd. (NASDAQ: IRID) is the public investment vehicle of Iridium LLC. For additional information regarding the Iridium system, please visit the website at iridium.com or call 1-888-IRIDIUM. About Motorola Motorola (NYSE: MOT) is a global leader in providing integrated communications solutions and embedded electronic solutions. Sales in 1998 were $29.4 billion. For more information, please visit the Motorola Web site at motorola.com. For additional information regarding Motorola Worldwide Information Network Services, please visit its Web site at m-wins.motorola.com. Satellite Series is a trademark and Motorola and the Motorola logo are registered trademarks of Motorola Inc., (R) Reg. U.S. Pat. & Tm. Off. All other companies and products listed herein are trademarks or registered trademarks of their respective holders. (c) 1999 Motorola Inc. ALL RIGHTS RESERVED. Iridium is a registered trademark and service mark of Iridium IP LLC. CONTACT: Motorola Public Affairs Barb Sacks Millman, 480/441-3662 www.mot.com/sstg or Iridium LLC Public Relations Michelle Lyle, 202/408-3818