FCC OKs extension on ICO satellite program

ICO Global Communications announced this week that the FCC had granted its request for a five-month extension on milestones to construct and launch its geostationary satellite ICO G1.

The company had been facing a July 17 final operational deadline, but last November it filed for an extension of its four remaining milestones--citing problems its manufacturer, Space Systems/Loral, had detected in certain subsystems. (The company’s milestone schedule dates back to 2005 when the FCC permitted ICO to modify its 2-GHz-band mobile satellite service [MSS] system from a non-geostationary satellite orbit [NGSO] to geostationary satellite orbit [GSO] system without adhering to a standard schedule.)

“We have expended over $310 million so far on our satellite and launch programs alone for ICO G1, and millions more on our terrestrial, device and layer activities,” said Tim Bryan, ICO’s CEO, in a statement. “We are grateful that we can continue our work to bring next-generation satellite services to the nation as soon as possible.”

Global satellite network operator Inmarsat had opposed the extension, saying that since ICO modified its system from NGSO to GSO and promised to stick to an aggressive buildout schedule, it should not be granted more time. TerreStarr--the other company with a 2-GHz-band MSS license--filed in support of the extension, stating that more time might be needed to finish complex systems through no fault of the licensee.

“This is good news for ICO,” according to a research note from banking firm Stifel Nicolaus. “Other MSS operators that had failed to meet their milestones at earlier stages were required to relinquish their spectrum licenses.”

ICO (based in Reston, Va.) is developing an advanced hybrid system that combines satellite and terrestrial communications capabilities to offer wireless voice, data, video and Internet services on mobile and portable devices.

After granting its request, the FCC put ICO on a new milestone schedule that includes a satellite launch on Nov. 30 and final operational deadline on Dec. 31.