ICO Global Communications… A Legal Lament (SATCOM)

[SatNews] Sometimes, important proceedings simply don’t bring in the favorable conclusions companies hope will result from legal actions for recourse.

ICO Global Communications (Holdings) Limited (NASDAQ: ICOG) has received an unfavorable ruling in the judicial review proceedings they initiated against Ofcom, the British telecommunications regulatory authority. The Company initiated the judicial review proceeding in 2009 after Ofcom announced its intent to request the International Telecommunications Union (ITU) remove ICO‘s global medium earth orbit (MEO) satellite system from the Master International Frequency Register (MIFR). This unfavorable ruling, if not reconsidered by the judge who issued the ruling permits Ofcom to move forward with the request. Ofcom’s request is not binding on the ITU, but could increase the likelihood that the ITU will initiate proceedings to cancel ICO’s MIFR assignments.

ICO successfully launched the ICO F2 MEO satellite in 2001, which operates globally in the 2GHz S-band. ICO’s remaining ten partially completed MEO satellites were placed in storage when construction was suspended in 2004, while the Company pursued claims against The Boeing Company relating to Boeing’s construction and launch of the MEO satellites. ICO’s claims resulted in a $603 million judgment against Boeing and in favor of ICO in 2008. The judgment is currently on appeal, with the appeal currently expected to be concluded next year.

“With billions of dollars and more than a decade of effort invested in deploying our MEO satellite constellation, we continue to take exception to Ofcom’s unprecedented attempt to ask the ITU to remove an existing operating system from the MIFR. Today’s decision, if it stands, is not binding on the ITU,” noted Company chairman and chief executive officer Ben Wolff. “However, with this decision, it is incumbent on us to analyze the merits of continuing to provide funding for the operating expenses associated with our MEO assets, including our F2 satellite.”

The ruling, and Ofcom’s proposed request to the ITU, will have no impact on DBSD North America’s geostationary satellite, known as G-1, which provides nexgen mobile satellite services to the United States.