Globalstar Telecommunications said on Tuesday it won approval to resume launching satellites from Kazakhstan, which will let the satellite telephone company have 32 satellites in orbit by the summer and to begin commercial service in September.
Globalstar's previous launch schedule was derailed in September, after the company lost 12 satellites worth US$180 million during a launch failure in Kazakhstan.
Globalstar (GSTRF) said it won permission to resume launches after the United States, Kazakhstan, and Russia signed an agreement governing the conditions under which US satellites can be launched from Baikonur, Kazakhstan.
Globalstar will use a satellite network to provide mobile satellite phone services, paging, data transmission, and fax from anywhere around the world.
Globalstar said it will launch four satellites about every 30 days, beginning in February. It plans to have 32 satellites in orbit by the summer.
Globalstar has been conducting tests since April 1998 using its existing eight satellites, and expects to begin commercial services in the third quarter of 1999 using the 32-satellite network. A total of 52 satellites, including four spares, will be in orbit by December.
Shares of Globalstar jumped 8 percent or $1.56 to $19.625 in Tuesday afternoon trading on Nasdaq.
News of the launch approval helped eliminate some uncertainty weighing on the stock. SoundView Financial Group analyst Tim O'Neil said he reiterated a buy rating on Globalstar.
Globalstar, led by founding partner Loral Space & Communications, is a partnership of several leading telecommunications companies and equipment manufacturers including Qualcomm, AirTouch Communications, and Alcatel Alsthom.
Globalstar's rival Iridium began service in November and had about 3,000 activated subscribers as of 31 December.
Iridium, owned by a consortium of technology and phone companies that includes Motorola, uses a network of 66 low-earth-orbit satellites combined with land-based wireless systems to provide communications services around the world.
Copyright© 1999 Reuters Limited.
