ISAT.L

Inmarsat global mobile satellite services operator and ACeS International Ltd., an Asian hand-held voice satellite services operator, today announced collaboration arrangements to offer low-cost, hand-held and fixed-voice services in the Asian market initially, with extended, combined-satellite coverage expected in early 2007.

Inmarsat will assume responsibility for satellite and network operations, wholesale service provision, and product and service development. ACeS will focus on distribution of MSS products in the Asian land and maritime markets, and will distribute Inmarsat’s BGAN services.

Inmarsat plans to expand geographic coverage for the hand-held service in early 2007, and launch its third Inmarsat-4 satellite in late 2007.

XMSR

The U.S. Securities and Exchange Commission (SEC) has launched a probe of XM Satellite Radio’s subscriber numbers, XM announced in a Sept. 5 filing.

In a letter dated Aug. 31, XM said it received a letter from the SEC "requesting that we voluntarily provide documents to the staff regarding our subscriber targets, costs associated with attempting to reach those targets, and related matters during the third and fourth quarters of 2005. These questions appear to pertain to matters similar to the issues underlying the previously disclosed securities litigation filed against us earlier this year."

XM is facing lawsuits accusing the company of misleading investors and charge XM Satellite Radio Holdings Inc. and President and CEO Hugh Panero with violations of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements to the market. "Defendants made misrepresentations and/or omissions regarding XM’s ability to reduce the costs of its new subscribers as it reached its goal of 6 million subscribers by year end 2005. In reality, and as known to or recklessly disregarded by defendants, XM would be forced to spend extraordinarily large sums of money in the fourth quarter of 2005, in order to stay on track to achieve its stated goal of 6 million subscribers at year end," one of the suits said.

At the same time, XM executives and insiders profited by selling their shares, the suit alleged. Panero sold 413,334 shares Dec. 6, at prices ranging between $28.37 and $28.95. The CEO’s proceeds from the sales, about 99 percent of his XM holdings, were $11.8 million.

XM surpassed 6 million subscribers in early 2006 and had forecast that it would reach 9 million subscribers by the end of the year. But XM has since dropped its subscriber targets several times and now forecasts that it will close 2006 with 7.7 million subscribers.

WRSP

Worldspace Satellite Radio will sell additional shares of the company to its largest stockholder, Yenura Pte. Ltd., allowing Worldspace to retain its listing on the Nasdaq market, Worldspace announced Aug. 30.

Nasdaq notified Worldspace Aug. 24 that it did not meet the $50 million minimum market value needed to retain its listing. As of Aug. 23, Worldspace’s market value was $47.8 million based on 21.3 million outstanding shares priced at $2.24. Worldspace’s stock has not climbed above the $2.27 mark since the company announced disappointing 2006 second quarter results in early August.

To raise Worldspace’s market value, Yenura will exchange its ClassB equity holdings in Worldspace for ClassA common stock. The transaction will result in the issuance of an additional 17.4 million ClassA shares of Worldspace, increasing the total number of shares used to calculate the company’s market value to 38.8 million. Worldspace "believes that the issuance and listing of these additional ClassA Shares will resolve the aggregate trading value deficiency and bring the company back into compliance with the Nasdaq listing requirements," the company stated.

Noah Samara, chairman and CEO of Worldspace, controls all of the voting shares of Singapore-based Yenura as well as a minority of the economic interests.