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HEAVY HITTERS PROPOSING GLOBAL LOW-EARTH SYSTEM WITH $9 BILLION PRICE TAG

WASHINGTON-A global wireless computer communications system proposed by Craig McCaw, Microsoft Corp. Chairman Bill Gates and AT&T Corp. is a step closer to receiving the frequencies needed to build a $9 billion network of 840 low-earth satellites.

The Federal Communications Commission has proposed to reserve portions of the 28 GHz band for new fixed satellite systems, like those designed by Teledesic Corp., and wireless two-way video systems with cellular-like architectures.

In addition, the 28 GHz band plan under review would set aside some feeder link frequencies for mobile satellite services.

Teledesic, based in Kirkland, Wash., wants to begin commercial operations by 2001. It will not compete with global pocket telephone satellite systems that are being built by Motorola Inc., TRW Inc., Loral Qualcomm L.P. and others in the United States and overseas.

“We view (the) action by the FCC as a very positive step forward for all the services seeking to compete in the 28 GHz band,” said Russell Daggatt, Teledesic president.

McCaw and his brothers, who built McCaw Cellular Communications Inc. into the nation’s top mobile telephone company before selling it to AT&T for $11.5 billion last year, said plans in April to invest $1 billion in Nextel Communications Inc. Nextel is the nation’s largest dispatch radio operator.

McCaw and Gates each own more than 30 percent of Teledesic. AT&T, through its McCaw purchase, owns about 24 percent.

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