spacetoday.net: EchoStar invests in TerreStar

Posted: Sat, Feb 9, 2008, 9:59 AM ET (1459 GMT)
Satellite television company EchoStar is among the companies that will invest $300 million into mobile satellite services company TerreStar, enabling the company to complete the development and launch of its first satellite. EchoStar is joining with private equity firm Harbinger Capital and other, unnamed investors to put $300 million into TerreStar. $200 million of which will be made available immediately to complete the construction and launch of TerreStar-1. The remaining $100 million will be used to start work on a second satellite that is a requirement of TerreStar's license with the FCC. The investment will also give TerreStar access to additional spectrum controlled by EchoStar and Harbinger. TerreStar plans to use its satellite, coupled with an ancillary terrestrial network, to provide high-speed data services in North America. TerreStar-1 is scheduled for launch late this year, although that could be pushed back by satellite assembly delays that the company disclosed this week in an SEC filing.