Satellite companies agree to partnership

Through its affiliate New ICO, satellite asset holding company ICO-Teledesic Global and mobile-satellite communications company Ellipso yesterday announced their plan to develop a mobile satellite system.

The companies said they would work together on technical, financial, business and regulatory issues to deploy its as-yet-undefined mobile satellite system plan. The companies said the new system would provide voice and data service to rural regions throughout the world that have thus far been denied wireless service.

“The fact is, the systems that are up there haven’t been able to meet what customers expect and require in terms of services and price,” said Gerald Helman, vice president at Ellipso. “We have a variety of assets, technologies and intellectual properties, and we’re going to sit down and figure out how these can be put together.”

Telecommunications mogul and ICO-Teledesic chairman Craig McCaw said the partnership would generate “creative changes” that would help the industry reach its full potential.

“The mobile satellite industry has failed spectacularly in delivering on its promise to users,” McCaw said in a statement. “We look forward to pooling our talents and creativity with our peers in the industry to overcome the challenges that have dragged down those who have launched before us.”

Terms of the contract were not disclosed, and no timeline has been established for the plan’s completion. Helman said the companies would begin discussing details of the plan in coming weeks.

Though the companies said the agreement could result in a merger, Helman said he would not speculate on such a deal.