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Government awards Licence for the provision of satellite personal communications services

PR0127
Date Icon 03/02/1999

I. LICENCE AWARDED

The Government has today, the 3rd day of February, 1999 awarded an authorisation under the Telecommunications (Regulation) Act, 1997 to IRIDIUM Italia S.p.A. to provide on a non-exclusive basis Satellite Personal Communications Services within the Maltese territory. IRIDIUM Italia S.p.A. will provide the service in the Republic of Malta through Maltacom p.l.c. by virtue of an agreement signed between the two companies in May, 1998.

II. SERVICES TO BE PROVIDED

1. Description of the service

The services to be provided consist of voice telephony voice mail, facsimile and data. IRIDIUM Italia S.p.A. will in addition be providing Paging or SMS services within the Maltese territory upon agreement reached to this end between IRIDIUM Italia S.p.A. and the operator of the nationwide paging network.

The licence granted to IRIDIUM Italia S.p.A. has a validity period of seven years but this term may be renewed for a further period of seven years subject to the approval of the Regulator.

2. Description of the network

Designed by Motorola, the IRIDIUM system, which will deliver high quality communication services, is the first commercial wireless

communications system to provide global digital service to hand-held subscriber units truly anywhere in the world. IRIDIUM system is made up of a constellation of 66 satellites orbiting at an altitude of 780 km, two control centres (one of which is located in Rome) and eleven gateways, i.e. the ground stations that ensure interconnection between the satellite network and the ground-based systems, be they fixed or cellular.

IRIDIUM makes it possible to have the benefit of voice telephony, paging and data and fax transmission services and integrate coverage of the GSM and the other ground-based cellular networks on a world-wide scale. The European user, for example, using no more than a single terminal and preserving his present number, will be able to communicate via the normal cellular GSM network and have the additional possibility, in countries where IRIDIUM has a roaming agreement, of using the IRIDIUM network for roaming in areas covered by cellular networks of a different standard or the satellite constellation for communicating with areas that lack any kind of other infrastructure.

The IRIDIUM system compliments with GSM and other terrestrial mobile networks thus it creates new traffic while giving subscribers global reach with a single dual-mode hand-held terminal.

III. GOVERNMENT'S TELECOMMUNICATIONS POLICY

The granting of this authorisation to IRIDIUM Italia S.p.A. concludes almost three years of negotiations and is another link in Government's telecommunications policy and plans to restructure the Maltese telecommunications sector. The Government strongly believes that strict Governmental control of telecommunications services conflicts with the freedom telecommunications operators need to adapt to the fast emerging competitive environment particularly, the competition following the deregulation and liberalisation of telecommunication services in Europe and elsewhere.

In the past eight years, the Government has already granted licences to operators of a cellular network, nationwide paging and cable TV service. It liberalised all terminal equipment and the Internet service. This demonstrates that, in line with its policy, the Government is gradually allowing other suppliers and operators of telecommunications equipment and networks to provide telecommunication services.

With the granting of this authorisation, Malta is demonstrating its serious intention to be a proactive promoter at home and abroad. By virtue of an agreement signed recently between Maltacom and IRIDIUM S.p.A., Malta has entered into a new era in the telecommunications field and became an active participant and service provider in a truly global mobile personal communication system. Through such strategic alliances, Malta stands to acquire new knowledge, benefits from transfer of technology and enhance its image abroad.

IV. IRIDIUM ITALIA S.P.A.

IRIDIUM Italia S.p.A., a subsidiary of the Telecom Italia Group, offers IRIDIUM, the first and truly global mobile satellite telecommunications system.

IRIDIUM Italia S.p.A. is the exclusive distributor of Iridium services in Italy and in 18 other European countries: the Republic of Malta, Belgium, Bosnia and Hersegovina, Croatia, Denmark, Faroe Islands, Greece, Liechtenstein, Luxembourg, France, Republic of Macedonia, Monaco, Netherlands, San Marino, Slovenia, Switzerland, Vatican City and Yugoslavia.

In Italy Iridium services will be provided by Telecom Italia Mobile (TIM).

Iridium Italia takes part in a world-wide consortium, Iridium LLC, which develops, owns and manages the Iridium system (satellite network, terrestrial gateways, Iridium terminals).

The company is also a shareholder in Iridium SudAmerica Corporation, responsible for providing Iridium services in South America. Iridium Italia is directly responsible for distribution in Argentina, Bolivia, Chile, Paraguay and Uruguay.

Iridium Italia and Iridium Communication Germany (ICG) manage the European Gateway of the Iridium system, located at the Fucino Space Centre (L'Aquila).

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