Hi Mike,
Yes, that's me, a Cal Bear--from a certain period of time that will go down in infamy;-)...
Sorry if someone else has already posted this:
Tuesday April 21, 1:58 pm Eastern Time
Company Press Release
China Telecom Invests in Globalstar Gains Partner Status in World's
Leading Satellite Telecommunications Partnership
BEIJING--(BUSINESS WIRE)--April 21, 1998--Globalstar (NASDAQ:GSTRF - news) announced today that China Telecom
(Hong Kong) Group Ltd. has agreed to invest $37.5 million to become a full partner in Globalstar L.P. China Telecom, a dominant
provider of fixed and wireless services in China, along with CHINASAT (China Telecommunications Broadcast Satellite
Corporation), will retain the sole rights to provide Globalstar services in China. Both companies, formerly wholly owned by
China's Ministry of Posts and Telecommunications (MPT), are expected to be wholly owned and supervised by China's newly
formed Ministry of Information Industry (MII).
''The addition of China Telecom as a full partner solidifies Globalstar's commitment to bringing the promise of mobile satellite
communications to China's 1.2 billion people,'' said Bernard L. Schwartz, chairman and chief executive officer of Globalstar L.P.
and of Loral Space & Communications, Globalstar's largest equity owner. ''China is installing 15 million lines of switching
capacity and 100,000 kilometers of fiber optic cables each year. But built-up demand cannot be satisfied. China's national
telephone installation waiting list is over 5 million, and it is increasing every day. Globalstar is an efficient, affordable and timely
solution to meeting this incredible demand.''
China Telecom and CHINASAT will manage all Globalstar operations in China. China's first Globalstar gateway is nearing
completion in Beijing, with subsequent gateways to be built in Guangzhou and Lanzhou, where siting and survey work is
underway. Including China, Globalstar now has service provider agreements in more than 100 countries, covering 85% of
Globalstar's business plan.
China Telecom (Hong Kong) Group Ltd. is a dominant telecommunications services provider in China and serves nearly 10 million
cellular subscribers. CHINASAT, based in Beijing, is responsible for managing and operating China's domestic civil
telecommunications and broadcast satellite systems. CHINASAT owns several telecommunications satellites, controlling them from
its first-class telemetry tracking and control earth station in Beijing. It also operates China's largest VSAT (very small aperture
terminal) networks.
China possesses the world's largest population and is the fastest-growing major economy, with real growth of 12 percent a year.
China's telephony penetration rate is currently less than 5%, and some 500,000 rural Chinese communities are in need of improved
telecommunications services.
Some subscribers in China will use mobile terminals, similar to today's cellular phones, with dual-mode capability so users can
switch from satellite telephony to conventional cellular telephony as required. Users in China's rural and remote areas may make or
receive calls through fixed-site telephones, similar either to phone booths or ordinary wireline telephones. Subscriber terminals will
communicate through a Globalstar satellite to one of China's planned gateways or ground stations that in turn will connect calls into
China's existing telecommunications network.
The Globalstar system, comprising 48 low-earth-orbiting (LEO) satellites and a global network of ground stations, will allow
people in areas of the world with inadequate or non-existing telecommunications infrastructure to make or receive calls using
hand-held, vehicle-mounted and fixed-site terminals. The Globalstar system will also provide data transmission, paging, and
facsimile services. The first four Globalstar satellites were successfully launched on February 14, 1998, and Globalstar expects to
launch a total of 44 satellites by the end of the year.
Globalstar, led by Loral Space & Communications, is a partnership of the world's leading telecommunications service providers
and equipment manufacturers, and includes QUALCOMM Incorporated, AirTouch Communications, Alcatel, Alenia, DACOM,
Daimler-Benz Aerospace, Elsacom, a Finmeccanica/Elsag Bailey Company, France Telecom [NYSE:FTE - news], Hyundai, Space
Systems/Loral and Vodafone. For more information, visit Globalstar's web site at globalstar.com.
Loral Space & Communications (NYSE:LOR - news), headquartered in New York City, is a high technology company that
primarily concentrates on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value
added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and
formatting, Internet connectivity, digital audio radio services, and international direct-to-home satellite services. For more
information, visit Loral's web site at loral.com .
Contact:
Globalstar
David Benton
+1-212-338-5383
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