Constellation Communications, Inc.
(Constellation) has announced the signing of a contract with Orbital Sciences Corporation (Orbital), valued at over $500 million, to deliver the first phase of Constellation's satellite communications network. The contract includes the manufacture of up to 12 satellites and the procurement of launch services and insurance. As announced in early May, Orbital also will provide equity investment and vendor financing to Constellation worth up to $150 million.
Constellation is developing a Low Earth Orbit (LEO) satellite system to
provide affordable voice, data and other communications services to mobile and fixed-site users throughout the world.
"We are extremely pleased to have met this key milestone," said Dr. C.J.
"Jerry" Waylan, President and CEO, "as we build Constellation to become a
global telephony company."
Under the terms of this agreement, Orbital will begin construction of the
satellites at its Germantown, Maryland facilities. The spacecraft for
Constellation's system will be based on one of Orbital's state-of-the-art,
three-axis stabilized satellite platforms. Each satellite will generate more than 2000 watts of power and will weigh about 500 kilograms (1100 pounds).
The satellites to be manufactured by Orbital represent the first of two
phases of satellites authorized for Constellation in July 1997 by the U. S.
Federal Communications Commission. The initial phase of satellites will form a single ring around the Equator at an altitude of approximately 2000
kilometers (1240 miles), with a coverage area of more than 75 countries in
Latin America, Asia, Africa, and the Middle East. This area contains nearly one-quarter of the world's population, less than two percent of whom have access to telephone service. Scheduled to be constructed and operational by the end of 2001, the Constellation satellite network will provide voice and data services to subscribers via hand-held, vehicle-mounted or stationary telephones. Constellation will supplement this system with forty-two additional satellites, providing complete global service by 2003.
One of only four companies licensed by the FCC to establish and operate
global LEO satellite telephone systems, Constellation will provide a wide
range of services to individuals, businesses and government agencies in
unserved and underserved areas worldwide. Constellation's shareholders
include Bell Atlantic, SpaceVest, Raytheon, and Orbital.
