Norsat Teams With Globalstar USA to Provide Data and Voice Satellite Access Via the Globalstar Constellation - Company Business and Marketing

Cambridge Telcom Report, Dec 27, 1999

Norsat International Inc., Thursday announced the signing of an agreement with Globalstar USA (formerly Airtouch Satellite Services) which will open new markets in the United States for Norsat's satellite access technology and distribution capabilities.

Under the agreement, Norsat will distribute Globalstar USA satellite-based telephony services, including data and voice airtime as well as handsets, through Norsat America and other distribution channels in the United States. Norsat also plans to distribute a new narrowband data service based on a proprietary interactive digital data terminal under development by Norsat to serve targeted markets. These wireless terminals will enable remote locations to send operations and transaction data for financial, monitoring, diagnostics, and other purposes, and to receive information in response.

"Norsat will apply its satellite microwave technology to develop a new cost-effective network for frequent transmissions of small, secure data packets," said Robert H. Bucher, Norsat's President and CEO. "In addition to the terminals, Norsat will provide complete data transmission solutions on the Globalstar USA satellite communications network. This agreement has created an opportunity for Norsat to add these narrowband products and services to its existing broadband and VSAT satellite access businesses, and represents a potential recurring stream of revenue from the sale of airtime and related services."

The potential customer base for Norsat's terminals includes the banking, petroleum, mining, forestry, fisheries, agriculture, transportation and retail industries; and gas, electric and water utilities. The Globalstar USA voice service is scheduled to be launched in the first quarter of 2000, with Norsat's data services expected to be available in the second half of the year.

Norsat International Inc. designs, engineers and distributes premium products for use in the satellite wireless communications and cable television industries. Its Satellite & Cable group is a leading supplier of satellite signal receivers and other ground station equipment. The Company's Norsat America Inc. subsidiary operates a network of 14 branch offices across the U.S. and is a distributor of DIRECTV satellite service to the direct-to-home (DTH) market and a DIRECTV Master System Operator (MSO) for the multiple dwelling unit (MDU) market. Norsat America also distributes DirecPC.

Globalstar USA, a Vodafone AirTouch Plc. subsidiary, has exclusive rights to sell Globalstar satellite service in United States and is responsible for building the satellite gateways and interconnecting with the phone network, development and management of billing and customer care systems, sales, product distribution and marketing.