Feeds

ICO emerges from Chapter 11…

...only to be subsumed by Teledesic real soon now

  • alert
  • submit to reddit

The essential guide to IT transformation

Satellite networking company ICO Global Communications - or New ICO, as we're now supposed to call it - has thrown aside its Chapter 11 bankruptcy protection.

Actually, we're probably going to have to call it ICO Teledesic. As we predicted last year, having invested a pile of money - a cool $1.2 billion - into ICO, Teledesic boss Craig McCaw is now getting the companies ready to merge.

It works something like this: having unified his Teledesic and ICO assets under a single holding company, ICO-Teledesic Global (ICO-TG), itself a subsidiary of McCaw Eagle River Investments, McCaw last week persuaded Teledesic's board to approve merging Teledesic into ICO-TG. That merger is subject to regulatory and shareholder approval, but it's hard to see said bodies rejecting the proposal, especially since the next step is to merge New ICO into it too.

As we said, that effectively leaves the two companies as one. Both of them specialise in providing high bandwidth data networks via satellite - something Teledesic has always been focused on, but which ICO only got into last year after Iridium's troubles persuaded it that satellite-based mobile phone services weren't such a good idea after all - so a merger makes sense. It allows both to share resources and cut their costs. Building a satellite network is expensive enough without the two of them building two networks independently.

ICO is already hard at work on the conversion of its 12 cellphone satellites (ten for operational work, two as back-up units) into packed-based network hubs, and upgrading its ground installations. "The enhancements to the New ICO network have been made in its ground infrastructure, which will make it possible to upgrade and evolve the network over time and even to switch among different technologies in real-time," said ICO's acting CEO, Russell Daggatt.

The merger would also make life easier for McCaw, who is already chairman of ICO-TG, ICO and Teledesic. Why take three chairs into the shower, when you only need take one? ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.