Globalstar De M xico is Granted License to Offer Satellite Telephony Service - Company Business and Marketing

Cambridge Telcom Report, Nov 22, 1999

Globalstar de M xico S.A. de C.V. announced at a press conference Thursday the granting of a commercial license to offer satellite telephone service throughout the country.

Under the terms of the new license, granted by the Mexican Ministry for Communications and Transportation on November 17, 1999, Globalstar de M xico will be able to bring satellite telephony throughout Mexico, including rural areas currently unserved by cellular or other telephone services, to the mining, construction and oil extraction sectors, and to frequent travelers.

Lauro Gonz lez, CEO of Globalstar de M xico, said, "We are very pleased to have been awarded this commercial license by the Mexican authorities, and we are looking forward to initiating Globalstar services in the Mexican market by the end of the year."

Mr. Gonz lez also noted the upcoming opening of the Globalstar gateway in Mexico, which will receive and process Globalstar calls across M xico and parts of Central America. "The Globalstar gateway in San Mart n Texmelucan, Puebla, will be inaugurated in the next few weeks, fulfilling another significant milestone towards provision of Globalstar service worldwide."

Commenting on the announcement, Bernard L. Schwartz, chairman and CEO of Globalstar, said, "Our affordable, easy-to-use system will soon bring telephone service to people and areas of Mexico where land-based systems have been unavailable or economically impractical. We are eagerly looking forward to making this service a reality throughout Mexico in the weeks and months ahead."

Globalstar de M xico is a joint venture between Mexican telecommunications holding company Principia S.A de C.V., Loral Space & Communications, and Vodafone AirTouch.

The Globalstar system is designed to provide affordable satellite-based digital voice services to a broad range of subscribers and users. Globalstar will meet the needs of residents of under-served markets who will use Globalstar's fixed-site phones to satisfy their needs for basic telephony as well as the needs of cellular users and global travelers who roam outside of cellular coverage areas.

Globalstar, led by founding partner Loral Space & Communications, is a partnership of the world's leading telecommunications service providers and equipment manufacturers, including Qualcomm Incorporated, Alcatel, Alenia, China Telecom (HK), DACOM, DaimlerChrysler Aerospace, Elsacom (a Finmeccanica Company), TE.SA.M. (a France Telecom company), Hyundai, Space Systems/Loral and Vodafone AirTouch. For more information, visit Globalstar's web site at www.globalstar.com.

Principia is a leading Mexican telecommunications company that is majority owned by the Autrey family and Mr. Lauro Gonz lez. In association with Loral Space & Communications and AirTouch Communications, Principia founded Globalstar de M xico in 1996. In 1997, Principia and Loral Space & Communications were selected to acquire 75 percent of Satmex in connection with the privatization of Mexico's fixed satellite services. Besides its participation in Globalstar de M xico and Satmex, Principia also owns Optel Telecomunicaciones, a public data network that provides telecom solutions in 17 cities throughout Mexico, as well as connectivity to the Global One worldwide network.

Loral Space & Communications is a high technology company that primarily concentrates on satellite manufacturing and satellite-based services, including broadcast transponder leasing and value-added services, domestic and international corporate data networks, global wireless telephony, broadband data transmission and content services, Internet services, and international direct-to-home satellite services.