Press release
New report highlights the challenges that mobile satellite operators
will face in funding new systems
MENLO PARK, Calif., Mar. 20 /PRNewswire/ -- Telecom, Media and
Finance Associates, Inc. (TMF Associates), the specialist Mobile Satellite
Services (MSS) consulting firm, today released a new research report on
developments in the mobile satellite market.

The report analyzes how Globalstar’s recently announced system problems
will impact growth prospects across the handheld MSS market, and
quantifies how other MSS operators such as Iridium and Inmarsat may
benefit. In addition, the opportunities for satellite-delivered mobile TV are
discussed, with lessons drawn from the success of TU Media’s MBSAT
project in Korea. Commentary is also included on recent fundraising and
newly announced system plans from operators including Terrestar and
Iridium.

Tim Farrar, author of the research, commented "The MSS market is in a
state of upheaval, with a war of words between Inmarsat, Iridium and
Globalstar over the prospects for Low Earth Orbit (LEO) mobile satellite
systems. Globalstar is proceeding with its second generation LEO
constellation, which may cost around $1.4B, while Iridium has announced
plans for a $2B+ second generation LEO system. Meanwhile, Inmarsat is
developing a handheld product for its geostationary satellite system, which
will increase competition for Iridium and Globalstar’s core customer base.
In North America, MSV, Terrestar and ICO are also investing more than
$2B in three separate regional MSS systems. In our view, this total
investment of $5-6B is unlikely to be justified by growth in the existing MSS
market, and so these operators must achieve considerable success in new
applications such as Ancillary Terrestrial Component (ATC) services,
where satellite spectrum will be re-used in terrestrial wireless networks.
Unless one or more partnerships are established to exploit these new
applications by the end of 2007, we believe that it will be difficult to secure
continued funding for some of the new satellite projects."

The report forms part of TMF Associates’ information service on Mobile
Satellite Services. More details are available at
http://www.tmfassociates.com/reports.

TMF Associates, headquartered in Menlo Park, California, is a leading
consulting and research firm providing business and technical analysis in
satellite, wireless and broadband telecommunications. The firm specializes
in Mobile Satellite Services (MSS), including Ancillary Terrestrial
Component (ATC) technology, and works with operators, investors and
equipment manufacturers to analyze complex market issues. For additional
information, please visit
http://www.tmfassociates.com.

CONTACT:  Tim Farrar, President
Telecom, Media and Finance Associates, Inc.
650-839-0376 or tim.farrar@tmfassociates.com
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