EchoStar Among Investors Providing TerreStar With $300 Million
[Satellite Today – 2-8-08] EchoStar Corp. is among the companies that have agreed to invest $300 million into TerreStar Corp. to help fund the manufacturing and launch of TerreStar’s satellites, TerreStar announced Feb. 7.
TerreStar, a subsidiary of Motient Corp. intends to build and operate an integrated mobile satellite and terrestrial communications network to provide universal access and tailored applications to wireless devices throughout North America.
The balance of the funding from EchoStar, Harbinger Capital Partners Master Fund 1 Ltd., Harbinger Capital Partners Special Situations Fund LP and other investors will be dedicated to funding the development of TerreStar-2 satellite. Some of the funds also will be used to complete and launch TerreStar-1, which is facing another three-month delay, according to manufacturer Space Systems/Loral (SS/L). While the spacecraft’s main body is complete, there are issues with the feed array.
In October, the U.S. Federal Communications Commission (FCC) granted a request by TerreStar to extend the launch milestone for TerreStar-1 to September. SS/L said it will provide a more definitive schedule for delivering the satellite after additional testing is completed in April. Arianespace, the launch provider for TerreStar-1, has confirmed that it can launch the satellite during a window that runs from December to February 2009.
As part of these transactions, TerreStar also will obtain an enhanced nationwide spectrum footprint through separate rights to certain 1.4 GHz spectrum currently held by EchoStar and Harbinger. The two investors also will have the right to nominate two members to the boards of both TerreStar Corp. and TerreStar Networks Inc.