TerreStar Purchases Echostars 1.4GHz spectrum

[Scott Greczkowski]

TerreStar Enhances Nationwide Spectrum Footprint -- Finalizes Transactions with EchoStar & Harbinger

http://www.businesswire.com/portal/...d=news_view&newsId=20080611005728&newsLang=en

RESTON, Va.--(BUSINESS WIRE)--TerreStar Corporation (NASDAQ:TSTR) today announced that it has enhanced its nationwide spectrum footprint by obtaining, through separate transactions, certain 1.4 GHz spectrum licenses held by EchoStar Corporation (NASDAQ:SATS) and CCTV Wireless I, LLC (CCTV). TerreStar has acquired the CCTV 1.4 GHz spectrum pursuant to an assignment from Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, LP (collectively, Harbinger).

“This enhanced nationwide spectrum footprint can help TerreStar accomplish its mission to offer reliable, interoperable satellite-terrestrial communications for the commercial, government, rural and public safety sectors throughout North America,” stated Jeffrey Epstein, TerreStar President.

TerreStar has purchased EchoStar’s 1.4 GHz spectrum, in exchange for the issuance of 30 million shares of TerreStar’s Common Stock. In exchange for 1.2 million shares of newly issued, Non-Voting Junior Participating Preferred Stock (which is convertible into 30 million shares of TerreStar's Common Stock under certain circumstances), Harbinger has assigned its rights to certain 1.4 GHz spectrum licenses to TerreStar Corporation.

“In addition to augmenting our nationwide spectrum footprint, these transactions underscore EchoStar and Harbinger’s commitment to TerreStar,” added Epstein. “Further, we continue our discussions with EchoStar to identify new business opportunities between the two companies."

Copies of related documents filed with the Securities and Exchange Commission (SEC) will be available on the SEC's Web site (www.sec.gov) under the company name "TerreStar Corporation” and through the TerreStar Investor Relations link at http://phx.corporateir.net/phoenix.zhtml?c=110135&p=irol-irhome.

About TerreStar Corporation

TerreStar Corporation is the controlling shareholder of TerreStar Networks Inc. and TerreStar Global Ltd., and a shareholder of SkyTerra Communications. For additional information on TerreStar Corporation, please visit the company's website at www.terrestarcorp.com.

Statement under the Private Securities Litigation Reform Act:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the strategy of TerreStar Corporation, its plans, and the transactions described in this press release. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, proposed, potential and similar words and terms in connection with future results. We assume no obligation to update or supplement such forward-looking statements.

 

[hendrix04]

so this means... ???

 

[JohnEL]

Charlie gets more money

 

[Ray_Clum]

30 million shares at $4.52 /share (at 11:20 eastern 6/11/08) = $135.6 million dollars... just a bit of change.

 

[hrxtreme]

A future Echostar purchase?

 

[JohnEL]

I know!

Just to get the Voom thread hater's somthing to whine about, how about Charlie buys all of Voom and puts it back up. :haha

Or maybe buys Tivo to end that battle. @party

OK, I shut up now. :neener

 

[vegassatellite]

I know!

Just to get the Voom thread hater's somthing to whine about, how about Charlie buys all of Voom and puts it back up. :haha

Or maybe buys Tivo to end that battle. @party

OK, I shut up now. :neener

Good job trying to take a thread off course in under 6 posts.

 

[mike123abc]

http://www.fcc.gov/Bureaus/Engineering_Technology/Notices/2000/fcc00395.pdf page 9 talks about the 1.4 GHZ band.

More Echostar/Terrestar activity from back in February, Echostar invested money in them: TerreStar Announces $300 Mln Strategic Investment By EchoStar, Harbinger & Other Investors; Stock Jumps In After Hours - Update

http://www.terrestar.com/

Looks like they are trying to set up a nationwide wireless internet using both satellite and ground based systems. Perhaps Dish's long term plan on getting an internet solution to bundle with satellite?

 

[JohnEL]

Thanks vegassatellite; :
I figured someone would have to respond to it! Have a good day anyway.

 

[Stargazer]

Dish Network really need nationwide internet service available to their satellite customers in order to compete with cable bundling. Once they are able to achieve this then they will be able to gain momentum once again.

 

[mdwatt]

If I remember right, didn't Charlie say at Team Summit that in the future DISH planned for customers to be able to take DISH Network with them wherever they went. Kind of like video on your cell phone. But not PocketDish? This would be a good way to do it. I dunno about the bandwidth requirements, but now they have the 1.4 Ghz spec, and the 700Mhz spec. Some techs engineers may be able to help fill in the blanks here.

 

[Tyralak]

I know!

Just to get the Voom thread hater's somthing to whine about, how about Charlie buys all of Voom and puts it back up. :haha

Or maybe buys Tivo to end that battle. @party

OK, I shut up now. :neener

You know, it's customary to yell "Allah Akbar" before hijacking a thread.

 

[cparker]

satellite internet has a LOT of latency. It might be fine for web browsing and/or email, but gamers would hate it ... they'd be dead before they took aim.

 

[Stargazer]

Satellite broadband is not good for VoIP either. This is why they need these other frequencies and to transmit those by different means.

 

[USMCGrunt0307]

Satellite broadband is not good for VoIP either. This is why they need these other frequencies and to transmit those by different means.

I gotta disagree with you there. We had Satellite VoIP while I was in Iraq for our call centers and as long as the guys managed the number of phones that were active it was pretty damn good.

but yes...Satellite INTERNET sucks monkey scrotum

 

[Stargazer]

Hmm, most people say that you cannot do VoIP with satellite broadband.

 

[USMCGrunt0307]

I dunno, maybe it was a specialized system that the military has but they were regular VoIP office phones that most companies have in their office buildings and....we were in the middle of the desert in a country that had no working infastructure...and there was a big sat dish next to the building we were using...

 

[Stargazer]

Most people have reported a delay in the conversation with satellite VoIP. I've read where some of the commercial satellite broadband systems have things in place to help with VoIP and performance but are pretty expensive.

 

[DishSubLA]

I think this news has more to do with receiving satellite services terrestrially, then it does internet.

 

[nsafreak]

Here's a thought although I'm not sure if E* could implement it. Know how both Sirius and XM Radio have tons of ground based repeaters in lots of metro areas so that they can ensure good coverage? I wonder if that's something that's feasible with satellite or if its something that would take too much bandwidth.