SkyTerra

SkyTerra was a United States telecommunications company focused on mobile-satellite services and hybrid satellite-terrestrial communications. The business developed from American Mobile Satellite Corporation, a consortium established in 1988 to provide satellite transmission of telephone, fax, and data signals. It later incorporated assets and operations associated with Motient Corporation and TMI Communications and Company, a wholly owned subsidiary of BCE Inc., giving it activities in the United States, Canada, and the Caribbean. The company’s central technical proposition was to combine geostationary satellite coverage with terrestrial radio networks. Rather than treating satellite and cellular systems as separate services, SkyTerra sought to use satellite spectrum and large-aperture spacecraft antennas to support mobile devices in areas beyond the reach of conventional cellular towers. Its proposed ancillary terrestrial component, or ATC, architecture would allow compatible handsets to use ordinary terrestrial cellular networks when available and switch to satellite connectivity in remote areas or during emergencies. SkyTerra became the first company to receive a Federal Communications Commission license to deploy ATC technology. Its customer base and established services were concentrated largely in specialized markets, including emergency response, law enforcement, transportation, and other users requiring communications over broad or difficult-to-cover territories. At the same time, the company and Boeing pursued a consumer-oriented satellite telephony network based on Boeing’s GeoMobile platform. The proposed system was designed to provide broad coverage across the United States with a single geostationary satellite, using a very large reflector antenna to communicate with handsets intended to be comparable in size and power to conventional mobile phones. SkyTerra also participated in corporate transactions involving Hughes Network Solutions. It acquired a 50 percent interest in Hughes Network Solutions in 2005 and purchased the remaining interest from DirecTV in January 2006. Hughes Communications was subsequently separated from SkyTerra and distributed to shareholders in 2006. The company changed its name from Mobile Satellite Ventures to SkyTerra in December 2008. Its major space asset became SkyTerra 1, a Boeing 702 satellite launched from Baikonur on November 14, 2010. The satellite carried a 22-meter L-band antenna, described at the time as the largest commercial reflector antenna built for space. Although the initial antenna deployment encountered a failure, deployment was completed approximately one month later. The spacecraft also recovered after being affected by a strong solar event in 2012. SkyTerra was acquired by Harbinger Capital Partners on March 29, 2010, and became part of the LightSquared venture in July of that year. LightSquared later entered bankruptcy. After restructuring, the business emerged under the Ligado Networks name, so SkyTerra is no longer an operating brand in its original form.

SkyTerra’s corporate history began in 1988 with the creation of American Mobile Satellite Corporation, a consortium formed to develop satellite-based transmission for telephone, fax, and data services. The company’s early business was built around geostationary mobile-satellite communications, including services associated with the MSAT satellite system. Its development reflected the difficulty of providing reliable communications across sparsely populated areas, transportation corridors, and regions where terrestrial cellular infrastructure was unavailable or uneconomic. A significant stage in the company’s development came through the integration of satellite operations spun out of Motient Corporation and TMI Communications and Company, L.P., a BCE subsidiary. Motient had previously been associated with ARDIS, whose acquisition was completed on March 31, 1998. On April 24, 2000, American Mobile Satellite Corporation changed its name to Motient Corporation, and its shares traded on the NASDAQ National Market under the symbol MTNT. The later combination of Motient’s satellite operations with TMI’s business created Mobile Satellite Ventures, commonly known as MSV or MSVLP. The resulting enterprise operated across the United States and Canada and also served the Caribbean. It focused on mobile-satellite services for organizations that needed wide-area coverage and communications continuity. Its customers and target users included emergency services, law enforcement, and transportation companies. The company also pursued a more ambitious consumer communications model in partnership with Boeing. The planned GeoMobile system was intended to allow satellite and terrestrial cellular connectivity through compatible mobile devices, using terrestrial networks where available and satellite coverage in remote areas or when local infrastructure was unavailable. SkyTerra’s hybrid-network strategy was enabled in part by regulatory developments. The Federal Communications Commission authorized satellite operators to deploy an Ancillary Terrestrial Component, allowing spectrum traditionally associated with satellite use to support terrestrial networks. SkyTerra became the first company to receive an FCC license for ATC deployment. The company obtained patents related to its hybrid architecture and promoted the approach as useful both for rural coverage and for public-safety communications that needed to remain available when ordinary cellular systems were damaged or overloaded. The company expanded its corporate interests in the communications sector through Hughes Network Solutions. In 2005 it acquired half of Hughes Network Solutions from the DirecTV Group for $157.4 million, and in January 2006 it purchased DirecTV’s remaining interest for $100 million. Hughes Communications was then spun off as a separate company in February 2006, with SkyTerra distributing its stake to shareholders. In December 2008, Mobile Satellite Ventures adopted the SkyTerra name. The rebranding accompanied the company’s effort to establish a new generation of satellite infrastructure. Its principal spacecraft, SkyTerra 1, formerly designated MSV 1, was a 5,400-kilogram Boeing 702 launched from Baikonur on November 14, 2010. The satellite carried a 22-meter L-band reflector, an unusually large commercial antenna intended to support communications with relatively small mobile handsets. The initial antenna deployment failed, but the antenna was deployed successfully roughly a month later. In March 2012, the satellite was affected by a strong solar flare and subsequently recovered. SkyTerra’s original plans contemplated three satellites: MSV 1, MSV 2, and MSV SA. The first two were later associated with SkyTerra 1 and SkyTerra 2, while the South America-oriented MSV SA plan was abandoned. SkyTerra 2 was built to some extent but was never launched; after the LightSquared bankruptcy, components associated with the spacecraft were repurposed by Boeing for the MEXSAT program. On March 29, 2010, Harbinger Capital Partners acquired SkyTerra Communications. The business became part of LightSquared in July 2010, under the leadership of Sanjiv Ahuja. LightSquared later filed for bankruptcy and emerged as Ligado Networks. Consequently, SkyTerra is best understood as a historical corporate and technology brand whose assets and strategy became part of successor businesses rather than as an active standalone operator.

1. 2012SkyTerra 1 recovers after solar-event disruption

   The satellite is affected by a strong solar flare in March but later recovers.

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2. 2010SkyTerra is acquired by Harbinger Capital Partners

   Harbinger Capital Partners acquires SkyTerra Communications, and the business is subsequently incorporated into LightSquared.

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3. 2010SkyTerra 1 launches

   The SkyTerra 1 Boeing 702 satellite launches from Baikonur on November 14.

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4. 2008Mobile Satellite Ventures adopts the SkyTerra name

   MSV changes its name to SkyTerra as it advances its hybrid satellite-terrestrial communications plans.

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5. 2006Hughes Network Solutions interest is completed and separated

   SkyTerra purchases the remaining Hughes Network Solutions interest and later distributes its stake when Hughes Communications is spun off.

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6. 2005SkyTerra acquires half of Hughes Network Solutions

   The company acquires a 50 percent interest in Hughes Network Solutions from the DirecTV Group.

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7. 2000The company becomes Motient Corporation

   The business changes its corporate name to Motient Corporation and trades on the NASDAQ National Market under MTNT.

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8. 1998ARDIS acquisition is completed

   The corporation completes its acquisition of ARDIS, connecting the business to the communications operations later associated with Motient.

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9. 1988American Mobile Satellite Corporation is founded

   A consortium establishes American Mobile Satellite Corporation to develop satellite transmission services for telephone, fax, and data communications.

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A specialized satellite-communications provider positioned around continuous coverage, hybrid satellite-terrestrial connectivity, and resilient communications for remote, mobile, public-safety, and transportation users.

• MSAT satellite servicesMobile-satellite communications

  SkyTerra’s established service platform used geostationary MSAT satellites to provide mobile voice and data communications over broad geographic areas. The services were particularly relevant to emergency agencies, law enforcement, transportation operators, and other organizations requiring communications outside conventional cellular coverage.

• SkyTerra 1Communications satellite2010

  SkyTerra 1 was a Boeing 702 geostationary communications satellite launched in November 2010. Its 22-meter L-band antenna was designed to provide high antenna gain, enabling communication with mobile terminals intended to be substantially smaller and lower-powered than traditional satellite terminals. The antenna deployment initially failed but was completed later.

• GeoMobile hybrid satellite phone networkSatellite telephony

  SkyTerra and Boeing developed a proposed consumer-oriented network based on the GeoMobile platform. The concept combined terrestrial cellular service with satellite connectivity, allowing compatible phones to use local cellular networks when available and satellite coverage in remote locations or during terrestrial network outages.

• Ancillary Terrestrial Component technologyHybrid wireless network technology

  The ATC architecture enabled satellite operators to supplement satellite coverage with terrestrial radio infrastructure using authorized spectrum. SkyTerra was the first company to receive an FCC license to deploy this approach, which it promoted for rural connectivity and resilient emergency communications.

• 2010Acquisition by Harbinger Capital PartnersM&A

  Harbinger Capital Partners sought to develop the company’s satellite and terrestrial spectrum assets through a larger wireless venture.

  What changed. Harbinger acquired SkyTerra Communications for $5 per share on March 29, and the company became part of LightSquared in July.

  Aftermath. The standalone SkyTerra brand was superseded by LightSquared and later by the successor company Ligado Networks.

  Acquisition price per share. $5.00 (March 29, 2010)

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• 2008Rebrand from Mobile Satellite Ventures to SkyTerraStrategy

  The company was developing a hybrid communications model combining satellite coverage with terrestrial cellular networks.

  What changed. Mobile Satellite Ventures changed its name to SkyTerra.

  Aftermath. The SkyTerra identity became associated with the company’s next-generation satellite and ATC initiatives until the business was absorbed into LightSquared.

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• 2010Harbinger Capital Partners acquires SkyTerra Communications

  Harbinger Capital Partners acquired SkyTerra Communications for $5 per share, after which the company became part of the LightSquared venture.

  M&A
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• 2010SkyTerra 1 satellite reaches orbit

  SkyTerra 1 was launched from the Baikonur Cosmodrome aboard an ILS Proton-M rocket and became the company’s principal new-generation satellite asset.

  Product launch
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• 2010SkyTerra 1 antenna deployment is completed after initial failure

  The satellite’s exceptionally large L-band antenna did not deploy on the initial attempt but was successfully deployed about one month after launch.

  Other
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• 2008SkyTerra changes name from Mobile Satellite Ventures

  Mobile Satellite Ventures adopted the SkyTerra name as it developed its hybrid satellite and terrestrial communications strategy.

  Other
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• LightSquared enters bankruptcy

  The LightSquared venture that incorporated SkyTerra later entered bankruptcy and subsequently emerged under the Ligado Networks name.

  Bankruptcy
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1. SkyTerra