BELLEVUE, Wash.-Satellite communications provider Teledesic LLC said it is suspending operations, “significantly” reducing its staff and re-evaluating its business approach.
The company said last week it will suspend work with Italian satellite manufacturer Alenia Spazio SpA, the company contracted to build the first two satellites in a 30-satellite constellation designed to provide worldwide broadband communications.
“We have met our regulatory milestones to date and remain financially solvent,” said Teledesic’s chairman and co-chief executive officer Craig McCaw. “Our decision to suspend our activities results from an unprecedented confluence of events in the telecommunications industry and financial markets. We do not presently see elements in place that would result in returns to our shareholders that are commensurate with the risk. We continue to believe that the Teledesic service would ultimately provide unique and measurable benefits to the world, and we are looking at scenarios to preserve the ability for that service to be realized.”
