Motorola has abandoned plans to develop its Celestri "Internet-in-the-sky" satellite system and has signed a $750 million deal to take a stake in the rival Teledesic network.
The move will result in Motorola securing a 26% share of the Teledesic system, which is already backed by Microsoft's Bill Gates, entrepreneur Craig McCaw, Saudi Arabian Prince Alwaleed bin Talal and Boeing. Matra Marconi Space, which was to have built the 68 Celestri satellites with Motorola, will also join the Teledesic project.
The decision to drop the Celestri leaves Teledesic facing only one main rival, the Skybridge project, which is led by Loral Space and Communications and France's Alcatel. The two companies are planning a 64-satellite fleet.
Arianespace says that it is considering entering into a partnership with an organisation planning to launch a fleet of communications satellites. Jean Marie Luton, the company's chairman and chief executive, says that the move is part of the company's future business strategy to maintain its lead in the launcher market.
The Hughes-built Galaxy IV communications satellite, owned by PanAmSat and launched in 1993, failed in orbit on 19 May, putting out of action 90% of the pagers used in the USA. PanAmSat switched the services to other Galaxy satellites.
The company says that the problem occurred in the spacecraft's onboard control processor which is used to point the spacecraft - and its vital antennas - in the right direction.
The Galaxy IV satellite, which is not recoverable, was insured for $165 million.
Source: Flight International
