NEW YORK-U.S. District Court of Maryland Judge Alexander Williams Jr. has dismissed a breach of contract lawsuit Comsat Corp. had filed Jan. 30 against IDB Mobile Communications Inc., saying it is the court’s opinion that the Federal Communications Commission is the appropriate forum for the enforcement of Comsat’s claim.
Comsat said following the ruling that is the District Court does not modify its ruling, it will file a complaint with the FCC.
Comsat sought to collect at least $5 million for Inmarsat space segment satellite services it said it provided to IDB in 1997.
Judge Williams ruled he could not find a breach of contract because IDB Mobile did not have a contractual obligation to purchase these services, said Stratos Mobile Networks, IDB’s parent company.
Comsat is a U.S. signatory to Inmarsat satellite services. The FCC granted a request by IDB, also based in Bethesda, Md., to become a second U.S. provider of Inmarsat services, said Marc Hausman, a spokesman for Stratos Mobile.
However, only Inmarsat signatories like Comsat are permitted to provide the space segment of Inmarsat services, Hausman said.
Stratos has land-earth stations in California and New York, and it had been purchasing the space segment of Inmarsat A services from Comsat until the fall of 1997, said Stratos’ attorney, Alfred Mamlet, of Steptoe & Johnson L.L.P., Washington, D.C.
“Comsat’s prices are uncompetitive, so IDB went shopping for a cheaper supplier,” Mamlet said, adding that the identity of the alternative provider “is a commercial secret covered by a confidentiality agreement.”
Mamlet said his client’s position is that its choice of a different Inmarsat space segment provider didn’t violate the terms of any contract or federal law.
IDB Mobile’s agreement with Comsat calls for it to “report its traffic to us on an ongoing basis and pay for the services used on an ongoing basis,” said Dave Groobert, director of corporate affairs for Comsat, when the lawsuit was filed. Comsat’s lawsuit pertains to services IDB used and didn’t pay for, he said.
“We have paid for every Comsat service we have used and for which we have been invoiced,” said Derrick Rowe, chief executive officer of Stratos Mobile Networks, Ottawa, shortly after the lawsuit was lodged.
Stratos Mobile Networks and IDB are part of Stratos Global Corp., a publicly traded Canadian company. In 1996 and 1997, another subsidiary, Stratos Wireless, purchased IDB Mobile ownership interests totaling 50 percent from Teleglobe Inc. and WorldCom Inc.
