12/23/02 : Liberty Satellite, Intelsat, and NRTC Lead $156 Million
Investment In WildBlue :
WildBlue funded through 2004 launch of affordable
satellite broadband service
DENVER, December 23, 2002 - WildBlue Communications
today announced that Liberty Satellite & Technology, Inc. (LSAT)
(OTC: LSTTA and LSTTB), Intelsat, National Rural Telecommunications
Cooperative (NRTC), Kleiner Perkins Caufield & Byers, and David
Drucker, WildBlue's chairman, have agreed to invest $156 million in
the company. Liberty Satellite, Kleiner Perkins and David Drucker
are existing shareholders. Intelsat and NRTC are new investors in
WildBlue and will join the board of directors as part of this investment.
This transaction is subject to WildBlue meeting certain conditions,
including FCC approvals. WildBlue expects the investment to close
in the second quarter of 2003.
WildBlue will deliver affordable two-way
wireless broadband services via satellite, direct to homes and small
offices, throughout the contiguous United States in 2005. WildBlue
is expected to be the first to launch the Ka-band spot beam satellite
technology designed to lower the cost of providing consumers high-speed
Internet access via satellite. The WildBlue system also will leverage
proven terrestrial cable modem technology, resulting in lower customer
equipment and installation costs, a critical requirement in satellite-based
consumer services. WildBlue's service should be especially appealing
to the millions of homes and small offices that lack access to DSL
or cable modem service.
WildBlue initially will offer its services
using its license for the U.S. Ka-band payload aboard Telesat Canada's
Anik F2 satellite, being built by Boeing and scheduled to launch in
late 2003 into the 111.1° WL orbital location. Based on future financing,
WildBlue plans to subsequently launch its own satellite, WildBlue-1,
being manufactured by Loral Space Systems, into WildBlue's 109.2°
WL orbital location. Andrew Corporation has been contracted to construct
WildBlue's earth gateways.
"We believe that retail satellite broadband
services in North America will be an important component of future
growth in the fixed satellite services industry," said Conny Kullman,
CEO of Intelsat, Ltd. "Millions of rural residents and small offices
have no access to high-quality, affordable broadband service comparable
to that available in urban areas. We have great confidence in WildBlue's
strategic plan and believe it represents a key opportunity for Intelsat
to capitalize on this market gap."
"NRTC is making this investment
in a technology platform to serve rural America with advanced telecommunication
services," said Bob Phillips, NRTC president and chief executive officer.
"We are confident that WildBlue is the best solution to deliver affordable
high-speed Internet access to rural America. A solid and loyal distribution
network will be key to a successful WildBlue rollout. And we are pleased
to bring the proven experience of our rural electric and telco members
in distributing satellite-delivered services to this effort."
"Intelsat,
Liberty Satellite, and NRTC are three of the most important strategic
relationships we could have chosen. WildBlue is especially pleased
to strengthen our partnership with existing investor Liberty Satellite,
and to begin our relationships with Intelsat, the world's premier
satellite services provider, and NRTC, the foremost distribution partner
for rural America." said Thomas Moore, WildBlue CEO.
Intelsat offers
telephony, corporate network, video and Internet solutions in approximately
200 countries via capacity on 25 geosynchronous satellites and a global
teleport network. Liberty Satellite pursues strategic opportunities
worldwide in the distribution of Internet data and other content via
satellite and related businesses. NRTC supports more than 1,000 rural
utilities in delivering telecommunications and information technology
solutions to their communities. Kleiner Perkins is a leading venture
capital partnership. David Drucker is the chairman of WildBlue and
is making his investment as an individual.
In addition to the new
investors, WildBlue's strategic investors include:
TeleSat - www.Telesat.ca
EchoStar - www.EchoStar.com
Gemstar / TV Guide - www.TVGuide.com
TRW
- www.TRW.com
