A US Bankruptcy Court in NY has approved Dish Network's proposed purchase of TerreStar. The deal has been valued at $1.38 billion. The main asset that Dish will be getting is the bankrupt satellite communications provider's 20MHz of wireless spectrum.
Dish Network's hopes to buy out TerreStar may have come true as reports have surfaced Tuesday that it's now the only bidder for the satellite smartphone creator. A deadline Monday night has passed with only a nearly $1.38 billion bid from Dish still around, giving it a near-certain win. Cellular carrier MetroPCS had considered a bid to get much-needed wireless spectrum, Reuters says, but has since backed out for unknown reasons.
Dish Networks is close to reaching an agreement to purchase bankrupt satellite smartphone provider Terrestar Networks for $1.2 to $1.4 billion, according to a Reuters report on Tuesday. Terrestar declared bankruptcy in October of last year and its assets include wireless spectrum.
TerreStar today opened the doors to its Genus satellite smartphone and began selling it to the wider public. The once work-only phone can now be bought just for personal use. Its creator imagines it being used by wilderness hikers, boaters and others who might leave cell coverage but still need to get online.
As expected, satellite phone maker and carrier TerreStar Networks has filed for Chapter 11 bankruptcy, according to a Tuesday report. The company and 12 of its affiliates had more than $1 billion of liabilities, with $1.4 billion of assets and $1.64 billion of liabilities as of June 30. TerreStar's largest secured creditor, satellite TV provider EchoStar, will help TerreStar with $75 million of operating capital to keep it working through the bankruptcy.
In spite of just releasing its Genus satellite smartphone, Terrestar may already be on the edge of bankruptcy after a scoop today. The company is reportedly in talks with creditors and could file for Chapter 11 bankruptcy as early as Sunday. The WSJ hints that TerreStar would already have a restructuring plan in place and would have both $75 million to last the reorganization and stock sales to help clear the $1 billion in debt.
After almost a year's delay, AT&T today began selling the TerreStar Genus. The Windows Mobile 6.5.3 phone is the first of any OS to include both a satellite phone and a traditional cellphone in one device. It can switch to satellite for a connection in very remote areas where even GSM isn't an option. Using satellite access carries a monthly premium, but the service uses only one phone number and serves as a boost to roaming coverage in the US.
Harbinger Capital Partners, a New York-based hedge fund, has last week revealed it plans to build a nationwide LTE network using terrestrial spectrum that is owned by satellite networks. The firm filed its plans with the FCC on Friday, after getting approval to purchase North American satellite network operator SkyTerra. The company plans on being wholesale only and offer data services exclusively, and use an open access platform. It could become a competitor to LTE networks from established wireless providers that include AT&T and Verizon Wireless.
AT&T on Wednesday announced it has partnered with TerreStar Networks to offer the Genus, a rare dual-mode cellular and satellite smartphone. The Windows Mobile-based, keyboard-equipped handset uses AT&T's 3G and GSM/EDGE phone networks most of the time but can tap into the satellite for a connection in remote areas where no cellular coverage is available, such as offshore or in the wilderness. Its 2.6-inch display is touch-capable, while Bluetooth, GPS and Wi-Fi are all built-in.
AT&T has plans to launch a hybrid smartphone capable of both 3G and satellite connections sometime in 2009, reports say. Working in conjunction with TerreStar, a provider of voice and data networks via satellite, the branded handset will have coverage in the mainland US as well as Canada, Alaska, Hawaii, Puerto Rico and the US Virgin Islands. It is being marketed mainly at travelers and sailors, who would not otherwise receive a signal in many remote areas.
