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Satellite Cell Phone Service

Satellite Cell Phone Service

By PETER SVENSSON, AP Technology Writer - Wed Jul 1, 2009 2:52PMEDT


The world's largest commercialsatellite was launched into space Wednesday, with a mission toprovide phone service to cellular "dead zones" in North America.

The satellite, owned by TerreStar Corp. of Reston, Va., blastedoff from Kourou in the South American territory ofFrench Guianashortly before 2 p.m. Eastern time, carried through pink clouds.

Half an hour later, French satellite launcher Arianespace announced thatthe TerreStar-1 had separated successfully from the rocket, on itsway to an orbit 22,000 miles above the Earth.

There, the satellite is designed to unfurl an umbrella-likeantenna of gold mesh 60 feet across, so it can pick up and relaysignals from phones that are not much larger than regular cellphones.

TerreStar has shown prototypes of the phones, which are similarto BlackBerrys, and like them, would have access to data ande-mail. The phones aren't on sale yet. TerreStar plans to have thesystem running before the end of the year.

To connect to the satellite, the handsets will need a clear viewof the southern sky, just like a satellite dish. When that's not available,the sets will be able to connect to regular ground-basedcellularnetworks. TerreStar has a roaming agreement with AT&T Inc.

The TerreStar-1 satellite, built by Loral Space & Communications Ltd., was originally scheduled to launch in 2007, but was delayed several times because of manufacturing problems.

The satellite is due be followed by two similar, even largerones from a competitor, SkyTerra Communications Inc., next year.

TerreStar and SkyTerra are hoping to avoid the fate that met twopioneers in satellite telephony. Iridium and Globalstar filed forbankruptcy at the beginning of the decade, wiping out billions ininvestor capital after launching extensive satellite systems. Theyare still in operation, providing last-resort communications forthe military, forest wardens and others who can afford to buydedicated, bulky satellite handsets for $1,000 and up.

TerreStar shares rose 17 cents, or 11 percent, to $1.70 onWednesday, though the increase occurred before the launch of thesatellite.

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