Loral and Alcatel to team up on new satellites

Article Abstract:

Rival satellite makers Loral Space & Communications and Alcatel-Alsthom are cooperating to produce next-generation global satellite systems that will deliver high speed bandwidth for Internet access, video conferencing, and medical telecommunications. Loral will be a partner in the Alcatel-Alsthom's $3.9 billion SkyBridge project, which includes 64 low-earth orbit satellites, while Alcatel will invest in Loral's $2 billion Cyberstar project, featuring up to four satellites in high-earth orbit. If the cooperation proves successful, the projects may be integrated into a single system, scheduled to begin phasing into full operation in 2000-2002. Loral and Alcatel had proposed technologically different and wholly separate satellite systems, but the two companies have a history of cooperating in other areas. The Skybridge system will compete with those from Hughes Electronics, Lockheed, AT&T, GE, and PanAmSat, as well as the Teledesic low-earth-orbit satellite system, backed by Microsoft.

Guided missiles and space vehicles, Communications Satellites, Guided Missile and Space Vehicle Manufacturing, Product development, Product information, Compagnie Financiere Alcatel, Satellite industry, Company product planning, Cooperative agreement for product development, Alliances and partnerships

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Loral, rivaling Hughes, to buy AT&T satellites

Article Abstract:

Loral Space & Communications is purchasing AT&T's Skynet satellite-service business for $712.5 million. Industry observers see the purchase as part of a trend as telecommunications companies expand their satellite communications services to focus on the increasing global market. Companies are investing billions of dollars in technology for providing television, telephone, video and data transmission to homes and businesses all over the world. The investments are risky because much of the advanced satellite technology is untested and the market is highly competitive. Loral Space will spend another $700 million to expand Skynet so that it will be able to compete with Hughes Electronics Corp in the global market for broadcast news, data and entertainment. Hughes recently purchased General Motors' PanAmSat Corp unit for $3 billion.

Telephone communications, exc. radio, Satellite Communications, Satellite Telecommunications, Company acquisition/merger, Satellite communications services industry

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AT&T to buy 2.5% of GM's DirecTv Inc.; move to include marketing of satellite television sent directly to home

Article Abstract:

DirecTv will receive $137.5 million in investment from AT&T for a 2.5% share of the company, and AT&T retains an option to purchase an additional 30% of the company in the future. AT&T will assume many of the marketing responsibilities for the satellite-to-home TV service, tapping its pool of 90 million existing telephone users. AT&T's established channel strength is expected to improve DirecTv's 1.25 million-person market penetration, as associated hardware prices decline because of increased competition. AT&T's investment in market leading DirecTv saves the company the estimated $1 billion necessary to create its own satellite-direct operation. AT&T's move leaves other communications companies to bid for the rights to high-powered satellite positions, with licensing rights estimated to cost as much as $700 million.

Communications Equipment, Telecommunications Equipment, Communications Equipment Manufacturing, Marketing, Company investment, Investments, Telecommunications systems, Company marketing practices, DIRECTV Inc., Company business planning

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