The Federal Communications Commission approved a request from American Mobile Satellite Corp. to modify its satellite license so it can temporarily consolidate its space segment facilities with TMI Communications and Co. L.P.
Under the satellite sharing agreement announced early last December, AMSC will purchase a 50-percent interest in TMI’s MSAT-1 satellite to operate its mobile satellite communications services. In turn, AMSC will lease its SkyCell mobile satellite system to an African consortium called ACTEL.
SkyCell is a single geostationary satellite that AMSC paid $600 million to build, launch and operate. It provides telephone, digital voice dispatch, data communications, mobile messaging and position reporting services.
Under the agreement ACTEL will lease the satellite for $38 million a year for five years. ACTEL is planning an initial public offering on the Johanessburg Stock Exchange to raise those finances.
AMSC will continue to provide services to its current customers through a resale agreement with TMI, under which AMSC will buy 50 percent of the MSAT satellite for $12 million a year for five years.
After the five years, AMSC has the option to renew the agreement or further partner with TMI by essentially purchasing half of the system, through sharing the costs of running the system.
AMSC signed a joint operating agreement and a satellite capacity agreement with TMI in 1994 to build, launch and operate compatible satellites that can serve as a backup to the other network. Under the agreement, each company also is entitled to lease excess capacity from the other under specified terms and conditions. They share ground facilities as well.
