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To: SKIP PAUL who wrote (19083)	12/3/1998 4:19:00 PM
From: Ruffian	Respond to of 152472

Globlstar> atching a Falling Globalstar by Polly Sprenger 12:00 p.m. 3.Dec.98.PST A series of launch failures and delays won't push back the launch of the Globalstar satellite phone system, the company's CEO said Wednesday. In a letter sent to shareholders, Bernhard Schwarz said that ongoing friction between the US State Department and Russia would soon be resolved, and launches will begin at the Baikonur cosmodrome in Kazakhstan 30 days after an agreement is reached. "The relevant inter-governmental approval process is underway and it is our understanding that there are no significant impediments to the launch approval," Schwarz said. "We expect approval within days." Globalstar missed a scheduled launch earlier this week. And on 10 September, the consortium lost 12 satellites in an explosion at Baikonur. According to Schwarz's letter, the company needs at least a month to fuel the rockets and prepare the satellites for launch. The consortium's launches have been delayed because of ongoing negotiations between the two countries over allowing Russian access to US satellite technology. The US won't authorize the launches until the agreement has been signed. Schwarz said he will not begin the 30-day preparation period until an agreement is concluded. The company's satellites are already in place at Baikonur, Schwarz's letter said. Globalstar, a consortium of satellite and space companies, is faced with financial difficulties as well. Schwarz said that Globalstar's current funding falls US$600 million short of the $3.5 billion needed to complete the project. "This is the last launch fail for Globalstar," said Greg Caressi, telecommunications satellite industry analyst for Frost and Sullivan. "They need a symbolic success [to raise additional funds]." Caressi said Loral Space Communications, the driving force behind the consortium, could provide those funds, but Loral is already weakened by Globalstar's troubles. With the trade agreement between the US and Russia posing a formidable obstacle, Globalstar has limited options for finding another launch pad. "They could contract for launches, but the Western entities are pretty full," Caressi said. "It takes a year to two years to get on a rocket."