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To: djane who wrote (4219)	4/27/1999 2:56:00 AM
From: djane	Respond to of 29987

Subscriber growth to boost China Tel net Tuesday April 27, 1:01 am Eastern Time By Donny Kwok HONG KONG, April 27 (Reuters) - China Telecom (Hong Kong) Ltd's 1998 profit is expected to swell by more than 30 percent from cellular subscriber growth in China's Guangdong and Zhejiang provinces and contribution from its Jiangsu province mobile unit. China Telecom is due to release its 1998 earnings results on Wednesday. Analysts were forecasting a 1998 net profit of 6.5 billion to 7.3 billion yuan, versus a 1997 profit of 4.96 billion yuan. ''It (the results) will be a combination of strong underlying growth in the southern provinces in addition to Jiangsu,'' said David Gibbons, analyst at HSBC Securities. China Telecom agreed to buy Jiangsu Mobile Communications Co Ltd in April 1998 for US$2.9 billion. Jiangsu results are expected to be included from June 4. Gibbons is looking for a net profit 7.176 billion yuan for 1998, including interest income of 1.951 billion yuan. Anticipation of strong results drove China Telecom shares to their all-time high of HK$17.40 on Tuesday before ending the morning sesssion up 3.9 percent or HK$0.65 higher at HK$17.25. The shares hit their previous high at HK$16.80 on March 25, 1998. Last August, the company posted an interim profit of 3.47 billion yuan for six months to June 30, 1998, including an exceptional gain of 1.08 billion yuan from interest income. ''The interest income in the second half will be lowered after it acquired assets earlier in 1998,'' said Chiu Man Wai, analyst at BNP Prime Peregrine. ''We expect to see growth in the subscriber base both organically and after acquisition,'' Chiu said. ''We expect to see a subscriber base of 6.5 million as at the end of 1998, including Jiangsu.'' Chiu forecast a profit of 7.3 billion yuan for 1998, including full-year interest income of 1.4 billion yuan. China Telecom said in October that its subscriber base at the end of September rose to 5.94 million, representing 28 percent of the total cellular subscribers in China. This compared to 3.04 million at its flotation in October 1997. Thomas Ku, analyst at South China Research, forecast a 6.5 billion yuan profit for 1998 including 1.6 billion yuan interest income. He estimated that including Jiangsu, China Telecom's total subscriber base was about 6.5 million. ''We expect to see strong subscriber growth in Guangdong province,'' Ku said. He expects some 40 to 50 percent growth in subscribers in Guangdong and Zhejiang provinces. However, some analysts said China Telecom's earnings growth would slow in 1999 due to tariff cuts that would offset potential growth in its subscriber base. China Telecom said earlier this month that it would cut the basic monthly charges of its Zhejiang Mobile Communication Co Ltd unit to 50 yuan from 62.5 yuan in a move to increase the company's subscriber base. Its Guangdong Mobile Communication Co Ltd cut certain fees by 20 and 50 percent on January 1, 1999. Gibbons said a full year contribution from Jiangsu would aid China Telecom 1999 earnings but interest income would decline due to reduced cash after the Jiangsu purchase and lower interest rates. Gibbons forecast a net profit of eight billion yuan for 1999, while Ku expects a 6.4 percent profit rise in 1999. Chiu, looking for a 8.1 billion yuan profit for 1999, said China Telecom was expected to report cash on hand of seven billion yuan after the Jiangsu acquisition. ''Having so much cash on hand, it is one of the expectation that the company will buy assets again,'' Chiu added. Copyright © 1999 Reuters Limited. All rights reserved.

To: djane who wrote (4219)	4/27/1999 2:59:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

Iridium loss wider than expected amid poor sales Monday April 26, 2:44 pm Eastern Time NEW YORK, April 26 (Reuters) - Satellite phone company Iridium LLC.'s(IRID - news) first quarter loss increased by 42 percent on Monday as the company's results fell short of Wall Street's expectations amid disappointing sales. The Washington,D.C-based company, whose two top executives have quit in less than a month, posted a first quarter net loss of $505.4 million or $3.45 per class 1 interest unit compared with a loss of $203.57 million or $1.45 per unit a year earlier. Analysts expected the firm to post a first quarter loss of $3.17 per unit, according to research firm First Call. Iridium shares were at $16.31 in late morning trade, up $0.31. Iridium, a $5 billion consortium that allows paging and wireless telephony anywhere in the world from a single phone number, posted revenues of $1.45 million after reporting no revenue a year earlier. Some investment firms expected revenue around the $7.5 million mark. ''We were very disappointed with our first quarter customer and revenue numbers,'' Iridium Interim Chief Executive John Richardson said in a statement. ''Clearly we have a great deal of work to do to improve our marketing, distribution and sales.'' The company said limited availability of handset models and accessories in many markets and delays to field sufficient salespeople hit revenues. A number of distribution and importation issues also continue to hurt product availability and the firm is reconsidering product and service prices to boost sales, Iridium said. Founded by Motorola (MOT - news), the 19-member group that forms Iridium is made up of industrial giants such as Lockheed Martin Corp (LMT - news) and Raytheon Co. (RTNa - news) . The Iridium project -- a global network of low-earth-orbit satellites linked to ground stations - has been dogged by service and equipment delays and has also faced financing headaches. Riyad Said, an analyst with Friedman Billings Ramsey, said the market had expected light results and Iridium stock sold off last week. ''I think they understand what they need to do from a management standpoint,'' Said said in a telephone interview. ''Now its just a matter of getting there.'' Copyright © 1999 Reuters Limited. All rights reserved.

To: djane who wrote (4219)	4/27/1999 3:01:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

ICO Reaffirms Commitment to Serving Rural Markets With Semi-Fixed Terminals Monday April 26, 12:32 pm Eastern Time Company Press Release WASHINGTON--(BUSINESS WIRE)--April 26, 1999--ICO Global Communications, the global mobile communications company, has reaffirmed its commitment to serving the needs of customers in rural and remote areas with a contract to Thrane & Thrane, Denmark, which will supply semi-fixed user terminals supporting voice, data, fax and short messaging services via a PC data connection. The contract demonstrates ICO's continuing commitment to serving the semi-fixed telecommunications markets. Last year, ICO announced an agreement with Landis & Gyr, which will supply of satellite-enabled public payphones to serve rural markets. ''We are delighted to be working with Thrane & Thrane, a leading manufacturer of semi-fixed phones,'' said Dr Fredrik Verkroost, ICO's Executive Vice President and Deputy Chief Executive Officer. ''The contract demonstrates our commitment to the semi-fixed market, which is of huge importance to ICO. It is also a further milestone for us, and one that should allow us to have semi-fixed products available at service launch next year. For people in remote areas, this service will provide valuable access that simply does not exist today.'' The Thrane & Thrane terminals are designed for residential and business use in remote locations where there is no telecommunications infrastructure. There will be two types of terminals: remote residential terminals, with external antennae and telephone handsets, and small/medium business terminals, with external antennae, keypads and displays. Both types will be easy to install, and will support voice, data, short messaging service and fax via a PC data connection. Lars Thrane, President of Thrane & Thrane, said: ''We are very pleased with the ICO contract. We feel confident that ICO and Thrane & Thrane will be able to provide competitive services and products compared to competitors. Today we have a leading position in the market for satellite communication equipment for remote businesses and residential houses. The ICO terminals will secure this position in the future.'' Editor's Note: ICO Global Communications (Nasdaq: ICOGF - news) was established in January 1995 as a private company to provide global mobile personal communications services by satellite, including digital voice, data, fax and messaging services. It has raised approximately $3 billion to date from equity and debt investors. Among its investors are more than 60 strategic partners and investors, comprising telecommunications and technology companies from over 50 markets around the world. In July of 1998, ICO was listed on Nasdaq in New York and became a public company. ICO expects to begin commercial operations of its mobile satellite services in the third quarter of next year. Its satellite services are expected to be used by international and domestic cellular users who roam outside areas covered by compatible cellular networks from business, industry and government organizations, mining, transportation, aeronautical, maritime, media and other sectors, as well as residents of rural and remote areas lacking adequate local communications. Thrane & Thrane manufactures and markets radio communication products for a wide range of applications including short wave, VHF, UHF and satellite communication. Since 1981, when Thrane & Thrane developed the first product, an automatic short wave telex unit, Thrane & Thrane has been one of Denmark's fastest growing telecommunication companies. Annual sales are approximately US$60 million. Today Thrane & Thrane's activities are concentrated in two areas of satellite telecommunication: Mobile User Equipment and Access Equipment for Satellite Ground Earth Stations and Network stations. In these business areas Thrane & Thrane has grown its position to a leading supplier within Inmarsat satellite systems. Thrane & Thrane has provided almost 50,000 of the 130,000 Inmarsat mobile systems in operation. Contact: ICO Global Communications Joe Tedino, 202/887-8111 Mobile: 202/255-0892 Visit the ICO Website at: www.ico.com Copyright © 1999 Business Wire. All rights reserved.