LOS ANGELES-Loral Space & Communications will forgo plans to deploy a two-way broadband satellite system and instead focus on its core strengths of providing data delivery platforms for outside customers, including designing and building satellites, managing satellites and leasing transponders, said Bernard Schwartz, chairman and chief executive officer of Loral, during a speech presented at The Carmel Group’s DBS 2001 Conference last week.
“Data delivery directly to the consumer-which entails packaging content, engaging in e-commerce, providing consumer premise equipment and acquiring and caring for subscribers-is better left to others, many of whom are our customers,” Schwartz said.
Schwartz explained Loral had devised a detailed two-way broadband delivery system via satellite and fiber involving the construction and launch of two high-powered Ka-band satellites, as well as the development and installation of ground stations. Upon further analysis however, Loral concluded it did not have the in-house skills to develop the marketing resources to effectively deploy such a system.
Instead, the company will develop and build satellite technologies and hardware for others.
Loral has in orbit two Ku-band satellites and it is designing two Ka-band satellites with spot beam capacity.
Schwartz also reiterated that Loral would not provide any further funding for Globalstar L.P., which recently announced it was suspending indefinitely all repayment of debt, including millions it owes to Loral.
” … we intend to write down substantially all of our Globalstar investment in the year 2000 to get the financial impact behind us,” Schwartz said.
