Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ICO Global Communications, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (46)	3/8/2000 8:22:00 PM
From: Rono	Read Replies (1) \| Respond to of 70

ICO Plan Evolves As First Launch Nears BRUCE A. SMITH/LOS ANGELES The Sea Launch platform and command ship are en route to the mid-Pacific to boost the first ICO Global Communications satellite into orbit as operational plans for the system are being reevaluated. Officials of the restructured ICO organization are laying out an aggressive strategy to expand the capabilities of the mobile satellite system. But beyond these efforts, documents filed in bankruptcy court show a more wide-ranging plan being developed to establish a holding company, initially called New Satco, which could operate assets of ICO as well as those of Teledesic and potentially the Iridium satcom system. ICO has been rescued from Chapter 11 by an investment team led by Craig McCaw. McCaw and his affiliate organizations, Teledesic and Eagle River Investments, agreed in October to lead a group that will provide ICO with up to $1.2 billion to emerge from bankruptcy. A definitive agreement to proceed was completed last month, and a second-round investment of $275 million was initiated ( AW&ST Feb. 28, p. 46). Now court documents indicate that, based on the evolving business plan, the restructured ICO is likely to require at least $2.1 billion of additional investment to reach service launch after Chapter 11 restructuring. Another $700 million will be needed to reach a positive cash flow position, excluding financing costs. The additional funds would be used for system improvements such as increasing the ICO data rate to 144 kilobits per sec. from the current 9.6 kilobits to support system enhancements. These could include Internet access to provide customers with services such as weather reports, stock quotes and standard electronic mail. The ICO system originally was designed to provide narrow-band voice and circuit switched data access to handheld satellite phones. Initial service capability is scheduled for the fall of 2001, but ICO officials said the company does not expect to generate significant revenues until about October 2002. Service was originally planned to begin this August. Launch of the first ICO satellite is considered a key milestone because it would provide the opportunity to validate satellite technology and operation of the nearly complete global ground station network. It will also enable ICO to move forward with licensing activities in a number of countries. Launch at the equatorial site is scheduled for Mar. 12. Originally set for December 1998, the first launch has been delayed by problems encountered during development of state-of-the-art communications technology on the spacecraft, as well as problems with other launch vehicles and the bankruptcy of ICO last year. ICO had decided earlier to loft its 12-satellite constellation, including two in-orbit spares, with a combination of Atlas IIAS, Delta III, Proton and Sea Launch boosters. Sea Launch earlier was to be used for missions near the bottom of the manifest because the ocean-going booster was unproven at the time. In the meantime, the other launch systems have faced delays while Sea Launch has had two successful missions--a demonstration launch and an operational mission. As a result, the company moved into the lead position on the ICO manifest, although it is currently only "penciled in" for the one launch. Boeing has been trying to return to flight with the Delta III after two previous launch failures. ICO was to be the next payload but has not firmed up a launch with Boeing. The decision recently left Boeing officials considering the possibility of flying a Delta III mission without a payload to demonstrate booster operation. ICO officials said they are proceeding with launch of the first satellite, called F-1, in an effort to begin a comprehensive satellite test program. It may be the only ICO launch for at least six months, with timing of the second flight depending partly on results of the satellite tests. The launch will be from the same equatorial site as the first two missions--154 deg. W. Long., about 1,200 mi. southeast of Hawaii. But instead of being launched virtually due west along the equator, the ICO launch will be inclined 45 deg. to the south to provide the completed satellite constellation with overlapping coverage. The 2,699-kg. (5,938-lb.) satellite, about 1,000 kg. lighter than on the first Sea Launch mission, is scheduled for liftoff at 6:49:15 PST, with a near-instantaneous launch window of ñ2 sec. Last week, the two vessels were encountering relatively high seas on their trip to the equator, which has typically required about 11 days to complete. Program officials said the vessels had been slowed by the weather, but might be able to make up the time as they entered calmer waters expected near the equator. If the flight is not made on the first attempt, the same launch window will begin 5 min. earlier the following day, with 5-min. increments on any successive days. ICO satellites will be placed in orbits with an altitude of 10,104 km. instead of geosynchronous transfer orbit, but operation of the booster's first and second stage will be similar to GTO missions. The major difference for the ICO launch is the overall mission duration of 2 hr. 9 min. required to complete launch operations from liftoff to payload separation. The difference involves a longer timespan between two third-stage burns. ¸ March 6, 2000 The McGraw-Hill Companies Inc. awstonline.com