Motorola, Paris Firm Plan New Global Networks

WASHINGTON —  Lured by growing demand for high-speed data communications, Motorola Inc. and Paris-based aerospace consortium Matra Marconi Space are planning separate global satellite networks that would compete within an existing $14-billion arena of similar projects headed for the launch pad.

The $12.9-billion Motorola system and the $2-billion Matra venture, both of which will offer high-speed data and video services to television studios, big businesses, telecommunications carriers and residential customers, will challenge Teledesic Corp., a 3-year-old communications satellite firm backed by cellular phone mogul Craig McCaw and Microsoft Corp. Chairman Bill Gates.

Matra and Schaumberg, Ill.-based Motorola--which has launched five of 66 planned satellites for its separate $3.5-billion Iridium global mobile phone network--are seeking to share airwaves that the Federal Communications Commission has already licensed to Kirkland, Wash.-based Teledesic. Teledesic, which aligned with Boeing Co. in April, is planning a $9-billion, 288-satellites global network.

The new competitors “think they can build a better mousetrap than Teledesic even if it costs more,” said Timothy J. Logue, a space and telecommunications analyst in the Washington office of law firm Coudert Bros.

“There’s always something of an advantage to the guy that comes second and who can figure out how to do things better,” he said. “On the other hand, Teledesic’s advantage is that it already has a license and time to line up financing.”

The Motorola system, called Celestri, would be one of the first to use satellites that circle a few hundred miles above the Earth, in addition to satellites in geostationary orbit, 22,300 miles above the planet.

Motorola executives said they will launch the first satellite in 2001, with the complete system running within 18 months.

On Tuesday, shares of Motorola closed at $71, up $1.25 on the New York Stock Exchange. Details of the Matra system were unavailable, but executives have previously talked of launching as many as nine satellites in an intermediate orbit and a single satellite over Europe.

Motorola’s project would be its fourth major space venture. Besides Iridium, the company has a $6.1-billion, 72-satellite project on the boards called M-Star and a geostationary satellite system called Millennium. Celestri would share satellites from those systems to reduce costs, executives said.

Motorola said it will charge $750 for its most basic consumer receiving unit, a hemispherical shaped dome that would plug into a decoder box attached to a TV, computer, telephone or other communications device.

“The Celestri is a low-Earth-orbiting satellite system that will provide real-time, one-to-one communication as well as broadcast capability,” said Myron Wagner, director of engineering for Motorola’s Advanced Systems division.

Many analysts are unconvinced that any of the projects will get off the ground in their current, costly forms. They say there is insufficient launch capacity to put so many satellites into orbit in such a short period and that few people who aren’t already connected to the Internet and other data networks are likely to be able to afford the new systems.

And though Motorola might fare well at the FCC, which has said it is interested in encouraging competition in this area, it is likely to get a different reception overseas.

European officials have expressed reservations about granting Teledesic so much radio spectrum for its satellite system and are likely to be even more skeptical of a second U.S.-based firm seeking to launch a global network.

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