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Satnews Daily
August 24th, 2009

Sending Stimulus to SkyTerra for Spending


Skyterra It's official, SkyTerra Safety Access LLC, a wholly owned subsidiary of SkyTerra (OTCBB: SKYT) filed with the National Telecommunications and Information Administration (NTIA) for stimulus funds under the American Recovery and Reinvestment Act (ARRA).

SkyTerra’s filing applied for funds from the NTIA’s Sustainable Adoption Program, part of the Broadband Technology Opportunities Stimulus Program, which seeks to provide funds that will increase broadband adoption in the United States. SkyTerra’s application will focus on increasing broadband adoption by the public safety community.

Included in the filing is a letter from Motorola, Inc. [NYSE:MOT] expressing support for broadband stimulus funding. As noted within Motorola's ex parte comments filed with the FCC on August 5 regarding 700 MHz public safety broadband recommendations, the company supports the establishment of provisions for optional ancillary satellite use. SkyTerra’s proposal to develop dual mode broadband satellite and 700 MHz terrestrial devices for the public safety community potentially enables a significant acceleration of broadband device availability.

While Motorola is not acting as a co-applicant, and has not been selected as a vendor to SkyTerra, Motorola expressed support for stimulus funding for this strategic area in a letter submitted with the SkyTerra application. "Motorola believes such satellite access could be an important element to supplement terrestrial coverage, especially in rural areas where public safety broadband terrestrial build out may be less practical than in more populated areas," said Rick Neal, Motorola vice president of business development.

“We are pleased to have Motorola support this important initiative, designed to help the public safety community communicate effectively during times of crisis,” said Alexander H. Good, chief executive officer of SkyTerra.