Space Communications News

Transformation in the maritime communication sector continues, as Airbus Defense and Space announces plans to sell its commercial satellite communications business. MR spoke with Erik Ceuppens, SVP, Satellite Communications, Airbus Defense & Space Communications, Intelligence & Security (CIS), to help put the development in perspective. The maritime communications sector has been in near continual flux for nearly two decades, with merger and acquisition activity a constant. In tandem with development of innovative software solutions…

Northrop Grumman Corporation announced that its board of directors has elected Ronald D. Grumman's next chairman of the board. Effective Oct. officer and president. chairman since 1990, will retire on that date. 2003 as president and chief executive officer. boards," said Sugar. Grumman in September 2001 and its chief executive officer in April 2003. has served as a member of the Northrop Grumman board of directors since 2001. Industries, a company acquired by Northrop Grumman in April 2001. Information Systems and a member of the chief executive office of TRW Inc. global automotive electronics business. scientific, and commercial space and electronics programs. Aircraft Co., Argosystems Inc. and The Aerospace Corporation. (1969) and doctoral degrees (1971) in the same field.

FBM Babcock Marine, in partnership with licensed shipyard partner Astilleros De Murueta, was awarded a contract for the construction of three 45 m (150 ft.) patrol vessels for the Coast Guard Command of the Armada de Ecuador (Ecuador Navy). The Armada de Ecuador announced that Astilleros De Murueta, using the FBM Babcock Marine Vigilante patrol vessel, was selected as their choice for their new fleet of patrol vessels. The Vigilante patrol vessel is a registered design from the FBM Protector class, designed as a reliable, capable but cost-effective patrol vessel.

Globalstar, L.P. brought its next-generation strategizing to fruition with the release of full commercial access of its mobile satellite service in the U.S. through its distributor Globalstar U.S.A. With the recent demise of Iridium, and ICO Global Communications' ongoing recovery from bankruptcy, Globalstar's entry into the market is seemingly ideal. Vessel owner/operators increasingly rely on state-of-the-art communication tools to ensure safe, efficient operations. Much as has transpired in consumer markets, the wider availability of communication technology — and subsequent drive-down of equipment and airtime pricing — fuels airtime usage.

Satellite telecommunications firm Globalstar Telecommunications said on Monday that five of its founding partners will provide the company with further equity financing. Under the terms of their agreements, Loral Space & Communications Ltd., Vodafone Group Plc, Qualcomm Inc.; Elsacom, and a France Telecom/Alcatel partnership will purchase 5.2 million shares of common stock of Globalstar for $56 million. Loral will purchase $12 million of this total. A sixth partner, ChinaSat, has indicated an intent to purchase an additional $12 million of Globalstar shares upon receipt of government approval. The share purchases are based on a price of $10.71 per share. The transaction is expected to close by September 29.

Shares of Globalstar Telecommunications Ltd. plunged 50 percent on Tuesday after the satellite telephone operator said it would stop paying debt holders so it can save cash to fund its operations into 2002. Globalstar, which was founded by Loral Space & Communications Ltd. and Qualcomm Inc., said it would save $400 million in 2001 by suspending payments on its funded debt, including its credit facility, vendor financing agreements and senior notes. The company said it will also halt dividend payments on its preferred stock. Shares of Globalstar were 29/32 lower at $1 at midday on Nasdaq, on volume of 10.1 million shares, after dipping as low as 15/16.

Mobile satellite telephone company Globalstar L.P. said on Monday it recorded a net loss of $3.8 billion in 2000 and it could seek bankruptcy protection if it cannot execute a restructuring plan. The company warned in an annual filing with the U.S. Securities and Exchange Commission that its restructuring plan may fail if it conflicts with certain restrictions under existing agreements or if it cannot forge an accord with its creditors. Globalstar is a partnership that was formed in November 1994 by satellite firm Loral Space & Communications Ltd. and cellular telecommunications company Qualcomm Inc. Loral owns about 38 percent of Globalstar L.P. Globalstar Telecommunications Ltd., the public Globalstar entity, owns more than 40 percent of the business.

Northrop Grumman Corporation has appointed Dr. Ronald D. Sugar to its board of directors, increasing the board to 14 members. Dr. Sugar, formerly president and COO of Litton Industries Inc., is corporate vice president, president and CEO of Northrop Grumman's Litton Sector. He joined the board effective with the completion of the company's tender offer for Litton Industries Inc. Prior to joining Litton, Dr. Sugar was president and COO of TRW Aerospace and Information Systems, and a member of the three-man Chief Executive Office of TRW Inc., a $17 billion global automotive, aerospace and information systems company. In his nearly 20 years with TRW, Dr.