Mobile Communications Holdings Inc. (MCHI) announced today that The Boeing Company is to be the system integrator for design, development, construction and deployment of the Ellipso global mobile satellite communications system.
The estimated contract value for the space and ground segments,
including launch services and system operations, is more than $1.4
billion. Up to 300 Boeing employees will work on the project, which
will primarily be based in Southern California.
Boeing will be an equity partner and systems integrator
contractor with MCHI for Ellipso, which is to bring affordable fixed,
mobile and airborne voice and data telecommunications to new markets
worldwide. Ellipso will focus on telephone service, but also will
provide digital data transfer, fax, paging, voice mail, messaging and
geopositioning services.
The MCHI Ellipso constellation has a unique, patented elliptical
orbit configuration using two complementary sub-constellations
totaling 17 satellites, one of which will be an on-orbit spare. Use
of elliptical orbits requires fewer satellites and launch services,
significantly reducing costs. These distinctive orbits allow Ellipso
to maximize mobile personal communications coverage of highly
populated areas during peak daylight hours.
"Boeing leadership in the satellite industry offers tremendous
technological and project management expertise and will strongly
advance fulfillment of the Ellipso project," said David Castiel,
president and chief executive officer of MCHI. "This arrangement with
Boeing further validates the system's viability and signals the
industry enthusiasm generated by the unique Ellipso orbital
configuration bringing low-cost telephone and data service to the
world."
As a systems integrator contractor, Boeing will use its
capability as a large systems producer and integrator to achieve a
low-cost satellite-based communication system.
Boeing, as space segment prime contractor, will take advantage of
its experience with the production of the highly successful Global
Positioning System (GPS) satellites. The Ellipso space segment,
including satellites and launch services, will be managed by the
Boeing Satellite and Ground Control Systems organization located in
Seal Beach, Calif.
Besides providing the tracking telemetry and command system,
Boeing also will perform at least two launches.
"Our involvement with the Ellipso project demonstrates the
combined strengths of the new Boeing," said Jim Evatt, president of
Boeing Information & Communications Systems. "We will be an active
participant in a wide variety of satellite communications markets,
including the marketplace in which Ellipso will reside. It is
extremely important to our future."
The Ellipso system, designed by Mobile Communications Holdings
Inc. (MCHI), is a global, mobile satellite-based communications system
utilizing unique elliptical orbits to provide low-cost, high-quality
mobile and fixed telephone and data services.
Patented Elliptical Orbits
Ellipso, a licensed Big LEO (low earth orbit) satellite system,
uses a unique elliptical configuration that tailors satellite coverage
to match population distribution. Ellipso also offers greater
capacity during daylight hours with sun-synchronous orbits that can
be adjusted to the time of day.
Orbital Configuration Dramatically Reduces Capital Requirements
The elliptical architecture of Ellipso's system dramatically
reduces the level of capital required for the system and therefore
reduces consumer per-minute cost. Due to its unique configuration,
the Ellipso system:
— Minimizes the number of satellites needed to serve markets by
focusing specifically on areas of greatest market demand.
— Achieves global coverage with just 14 satellites and can be revenue
generating with only six satellites in orbit.
— Requires only 17 satellites (including spares) to complete its
entire constellation, reducing total system costs by two to four times
that of competitors.
— Integrates the spare satellites into the operational orbits,
allowing their capacity to be fully utilized by the system.
Unique Orbits Drive Strategy for Market Entry
Due to its efficient design and thus low per-minute cost, the
Ellipso system is strategically positioned to meet the needs of
developing countries, small businesses, and "middle market" users
worldwide. The system is particularly well suited for rural
communities seeking to expand or initiate telecommunications without
the installation of a cost-prohibitive traditional infrastructure.
Ellipso sees its greatest market opportunity in developing
countries that are poorly served by existing telecom networks or
presently lack an established telecommunications infrastructure
altogether. With the help of satellite-based communications, the total
market for worldwide subscriber terminals is estimated to reach 42
million by 2006 (12.8 million fixed and 29.2 million mobile).
Partners Facilitate Market Entry
Ellipso is committed to building relationships with regional
operators to facilitate effective distribution and marketing of
services worldwide. Currently, Ellipso has partnerships with:
Vula Communications of South Africa: Sub-Saharan Africa & Spectrum
Network Systems Ltd.: Australia, Indonesia, New Zealand, Papua New
Guinea.
