Lockheed Martin sends Astrolink to the moon

Funding from Lockheed Martin Global Telecommunications, Telespazio and TRW Inc. has allowed Astrolink, a strategic venture initiated by Lockheed Martin, to begin construction of what it hopes will be the first global, on-demand, wireless broadband service based on geostationary satellites.

After nearly three years of planning, Astrolink, a newly formed global wireless broadband service, based in Maryland, is ready to begin construction and expects to offer service in 2003, along with the likes of Microsoft brainchild Teledesic, which will use low Earth orbit satellites. SkyBridge will launch its LEO constellation in 2001.

"I am confident we will be the first to market because we are the first starting to build and we have a strong partnership," said Celso Azevedo, president and CEO of Astrolink.

Lockheed Martin, which will provide the company's spacecraft, systems integration and launch services, has invested $400 million in the venture. Telespazio, part of the Telecom Italia Group, is investing $250 million and will supply the worldwide ground systems for the venture while managing the overall satellite and network control systems.

TRW will build the digital, packet-switched communications payloads for the satellites and has invested $250 million. Each company will have a minority ownership of the $3.6 billion Astrolink venture. Azevedo hopes to announce additional shareholders during the second half of this year.

"We like [Astrolink] because Lockheed Martin is behind them," said Larry Swasey, senior wireless analyst with Allied Business Intelligence. "If they do it in time, one satellite at a time, they should do well."

"The fact that they have two equity partners is a good sign," said Betsy Kulick, an associate at Leslie Taylor Associates, a consulting firm that follows the mobile satellite business. "It will take a great deal of corporate commitment to meet the goal. Like everything else, the satellite thing can run into some kind of delay."

Astrolink plans to launch the first geostationary, Ka-band satellite in 2002, followed by the launch of three additional satellites at six-month intervals. The first satellite will provide broadband data communications services to customers in Europe and North and South America. The remaining spacecraft will extend the network worldwide. Nine satellites will eventually be placed in five orbital positions, according to the company.

Customers will be able to install small satellite dishes at businesses and homes in order to quickly and inexpensively connect to high-speed networks.

"Our business plan is currently based on businesses," said Azevedo. "Whatever we do for the consumer market is gravy on top of revenues coming from businesses."