Globalstar announced today an agreement with Al-Murjan, a Saudi Arabia-based holding company, for the distribution of Globalstar mobile satellite services throughout the Gulf-states and the Middle East beginning in 1999.
Under the service agreement, Al-Murjan will act as the sole
distributor of Globalstar mobile satellite services in Kuwait, United
Arab Emirates, Qatar, Oman, Yemen, Jordan, Syria, and Bahrain. It will
own and operate a centrally located Globalstar ground station
(gateway) and obtain all necessary regulatory approvals for
interconnecting the Globalstar system with those nations' existing
wireline and wireless infrastructure. The exact location of the
planned gateway is under study.
"This agreement completes Globalstar's service provider plans for
the Middle East," said Anthony J. Navarra, executive vice president
for Globalstar. "Globalstar now has service provider agreements in 114
nations, covering 90 percent of Globalstar's business plan."
According to the International Telecommunications Union (ITU),
the number of main telephone lines in the Middle East region is
approximately 6.3 lines per 100 people, while the number of cellular
users, currently 1.2 million users, has been doubling every three
years. The dual-mode (cellular and satellite) Globalstar system has
been expressly designed to extend cellular-type service in regions of
the world where it has not been cost-effective or practical to build
out terrestrial cellular infrastructure. Moreover, Globalstar is
expected to offer an affordable means to meet basic telephony needs in
remote regions that have little or no telephone service.
"This project will greatly enhance the development of mobile
satellite services in the Middle East and further satisfy demand for
telecommunications," said Mr. Sultan K. Bin Mahfouz, chairman of
Al-Murjan. "Working with Globalstar, we will bring the benefits of
advanced communications to people throughout the region."
Subscribers in the Middle East will use mobile terminals similar
to today's cellular phones, with dual-mode capability so they will be
able to switch from satellite telephony to conventional cellular
telephony as required. Some Globalstar users in rural and remote areas
may make or receive calls through fixed-site telephones, similar
either to phone booths or ordinary wireline telephones. Subscriber
terminals will communicate through a Globalstar satellite to a gateway
that, in turn, will connect calls into existing telecommunications
networks.
Al-Murjan is a Saudi multinational company with manufacturing and
trading operations in various industries. Al-Murjan's current
activities encompass manufacturing, trade and distribution of consumer
products, investments, design and supply of desalinization plants,
supply of equipment to the printing and graphics industries, and
operations in the marine and mineral industries. Al-Murjan conducts
activities in Saudi Arabia and in other regional and international
markets.
The Globalstar system, comprising 48 low-earth-orbit (LEO)
satellites and a global network of ground stations, will allow people
around the world to make or receive calls using hand-held,
vehicle-mounted and fixed-site terminals. Globalstar will also provide
data transmission, messaging, facsimile and position location
services. Globalstar currently has eight satellites in orbit and
expects to launch 36 additional satellites by the end of the year.
Four Globalstar gateways are being used to control and test the
satellite system, and site work and construction is under way at 20
more gateway sites around the world.
