TerreStar Networks Inc.

Telecommunications

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One Discovery Square 12010 Sunset Hills Road 9Th Floor, 20190 Providence

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TerreStar and Motient also have large holdings in SkyTerra Communications and Mobile Satellite Ventures, and are generally betting heavily on the success of this next generation of hybrid satellite- and ground-based communications services (see World: 29 March 2007: ). BCE was formerly a shareholder in MSV but has recently been exiting the satellite market, which it may regard as likely to be an increasingly niche market for consumer services as terrestrial mobile phone footprints continue to expand (see Canada: 19 September 2006: and World-Canada: 18 December 2006: ). This type of service is particularly used by government agencies, and the current focus on homeland security and disaster response is likely to provide rich pickings for a wide footprint service such as that which TerreStar aims to provide (see United States: 22 December 2006: and United States: 20 April 2007: ). By using a combination of ground-based mobile phone systems and satellite systems, TerreStar and Orbcomm aim to improve performance where possible and couple this with more reliable and economic ubiquitous coverage than standard mobile phone and wireless connectivity systems allow. By using a system that can support standard mobile phone handsets TerreStar will also benefit from economies of scale and wider consumer choice in the handset market. A number of companies have attempted to make satellite phones profitable, often with considerable difficulties such as Globalstar and Teledeisic (see World: 23 November 2006: ). Although the remaining companies are also facing expensive satellite renewal programmes, starting a new company with no subscriber base or market presence, in a market that already has a number of players remaining after the fall-out of the crash, may prove difficult and success will rely on the actual economies of the latest technologies. The market for Orbcomm's M2M services is growing rapidly and the deal with a major carrier will allow it to expand its offering and effectively compete for services that have high data requirements while adding in the ubiquitous coverage of its satellite footprint.

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Telecommunications

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One Discovery Square 12010 Sunset Hills Road 9Th Floor, 20190 Providence

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