The European Commission has invited comment on the Iridium satellite system and its impact on European mobile communications, although the EC has said it “intends to take a favorable view” of the Motorola Inc. project.
The European Union is considering the future role of satellite telephony systems. Several are scheduled to be built during the next five years to offer handheld, wireless telephony worldwide.
The numerous partners in each satellite group creates a complex set of competition interests for the commission to examine.
“Most planned satellite personal communications services systems are United States-led initiatives,” the commission said when it revisited the matter earlier this month. “As of now, there is no prospect of a European-led, worldwide S-PCS system. However, European industry is already substantially involved in the announced S-PCSs.”
Last year, the commission requested each satellite company file a description of what it intended to accomplish. Specifically, the commission is interested in:
Iridium Inc., a project led by Illinois-based Motorola, which holds 20.1 percent. Motorola has reserved for itself the Mexican/Central American gateway, has an interest in the South American gateway and shares the North American Gateway with Iridium Canada and Sprint Corp. There are 16 other strategic investors. Only two strategic investors are European-Stet of Italy, with 3.8 percent, and Vebacom GmbH of Germany, with 10 percent.
Globalstar, led and sponsored by Loral Corp. of New York. Partners include European aerospace companies Alcatel of France; Aerospatiale of France; Alenia of Italy; Deutsche Aerospace of Germany; and Tesam, a joint venture between Alcatel and France Telecom.
Odyssey, supported by the U.S. aerospace division of TRW and Canadian telecom operator Teleglobe Inc.
Inmarsat, an established, international partnership.
Globalstar said it gave the commission the paperwork it requested, but Globalstar hasn’t filed a formal request to be approved by the EU. The New York company isn’t sure EU permission is required to operate the system, although Globalstar said it wants “to be responsive.”
Most users of the satellite systems will be international business travelers, using dual handsets in the terrestrial mode while within the range of land-based network coverage. Users will switch to satellite in areas outside of terrestrial coverage or in areas with incompatible networks, said the commission in a recent analysis of the satellite situation.
“Other important categories of users will be rural communities, government communications and aeronautical users,” the EC said. “Satellite PCS is not intended to compete with terrestrial cellular and paging systems in urban or other densely populated areas because of the advantages such cellular and paging systems have in terms of cost, voice quality and signal strength.”
