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FAQs

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Company Overview

Q. When was SkyTerra Established?

A. SkyTerra (formerly Mobile Satellite Ventures) became the company's name in December 2008. SkyTerra is also the name of company's parent organization – SkyTerra Communications, Inc. The company was founded in 2001, based on a vision of providing a fully integrated satellite-terrestrial network to serve North America.  SkyTerra's founders believed that a ubiquitous integrated network, leveraging the beneficial nationwide characteristics of company's L-band mobile satellite service spectrum with an advanced all-IP open architecture, would provide significant advantages over existing networks. SkyTerra has pioneered advanced technology supporting the most commercially competitive, "transparent" and integrated use of spectrum to provide higher data speeds, lower costs per bit and flexibility to support a range of custom IP applications and services. SkyTerra's next-generation integrated satellite-terrestrial communications network is expected to provide seamless, transparent and ubiquitous wireless coverage of the United States and Canada to conventional handsets. When completed, the network will support communications in a variety of market segments, including public safety, homeland security, aviation, transportation and entertainment, by providing a platform for interoperable, user-friendly and feature-rich voice and high-speed data services.

Q. Where is SkyTerra headquartered?

A. SkyTerra is headquartered outside Washington DC, in Reston Virginia, and with an operations facility in Ottawa, Canada.

Q. How many people does SkyTerra employ?

A. SkyTerra currently employs approximately 180 people based primarily at its Reston and Ottawa facilities. The company will adjust the number of employees to meet requirements associated with the build-out and launch of its next-generation network.

Q. What is SkyTerra's ownership status?

A. SkyTerra is a joint venture. SkyTerra LP is a wholly owned subsidiary of SkyTerra Communications, Inc. and SkyTerra (Canada) Inc. is controlled by BCE Inc. SkyTerra Communications, Inc. stock is traded over the counter (OTCBB: SKYT).

Current Services

Q. What are your current services and markets?

A. SkyTerra currently offers a range of mobile satellite services (MSS) using two geostationary satellites that support the delivery of two-way radio (PTT), mobile data, voice and fax services. The company is licensed by the United States and Canadian governments to operate in the L-band spectrum, which it has coordinated for use. SkyTerra currently has coordinated approximately 30 MHz of spectrum throughout the United States and Canada. The United States and Canadian spectrum footprint covers a total population of nearly 330 million.

Q. What are your current markets served?

A. SkyTerra currently provides two-way radio (PTT) and mobile data services, a significant portion of which are United States and Canadian Federal, state and local agencies, involved in public safety and security. These public safety and first responders depend on SkyTerra's system for redundant and ubiquitous wireless services during daily operations and in the case of emergencies. Specific markets served include Homeland Security, Public Safety, Emergency Response, Search and Rescue, Military, Coast Guard, Police, Trucking, Rail, Oil and Gas, Marine, Natural Resources, and Utilities.

In addition to offering managed services to the company's core direct customer base, its services are also marketed through wholesale service provider partners for special purpose networks. A large majority of these indirect users access the network for fleet management and asset tracking services, relying on SkyTerra's network that provides connectivity throughout North American.

SkyTerra also markets voice services through dealers as well as on a wholesale basis in the United States and Canada. User equipment can be installed on trucks, ships and airplanes or at a fixed location. Users can use the phones for standard voice communication, including value-added services such as call forwarding, call waiting and conference calling.

In addition to voice service, SkyTerra is a leader in two-way radio (PTT) service. Two-way radio (PTT) service provides the wide-area equivalent of push-to-talk service among users in customer-defined groups. Each user can belong to as many as 15 groups, and each group can have up to 10,000 members. Group members can operate anywhere in the United States and Canadian coverage area. Two-way radio (PTT) service facilitates team-based group operations and is highly suited for emergency communications.

Next-Generation System

Q. What are SkyTerra's next-generation plans?

A. SkyTerra is developing an integrated satellite-terrestrial communications network, based on the company's patented ancillary terrestrial component (ATC) technology. The company expects its next-generation network will provide seamless, transparent and ubiquitous wireless coverage of the United States and Canada to conventional handsets. SkyTerra plans to launch two of the most powerful commercial satellites ever built that will enable this network to support communications in a variety of market segments including public safety, homeland security, aviation, transportation and entertainment, by providing a platform for interoperable, user-friendly and feature-rich voice and high-speed data services. Terrestrial gateways (or earth stations) for the new network will be located in Napa, California and Dallas, Texas in the U.S. and Ottawa, Ontario and Saskatoon, Saskatchewan in Canada.

Q. Can you explain the benefits of Ancillary Terrestrial Component technology?

A. Ancillary Terrestrial Component (ATC) encompasses an ensemble of terrestrial cell sites (an "Ancillary Terrestrial Component" or ATC) wherein both the ATC and the space segment communicate with user equipment using a common set of MSS frequencies. The employment of ATC will enable SkyTerra to provide unparalleled coverage with great spectral efficiency. The opportunity to build a next generation integrated network, incorporating a satellite system and an ancillary terrestrial component, was supported by a unanimous January 2003 ruling by the FCC, authorizing the use of MSS spectrum for terrestrial wireless services and a similar ruling made by Industry Canada in May 2004. SkyTerra is leveraging the flexibility provided by its spectrum by deploying an integrated satellite-terrestrial broadband network, servicing customers throughout North America.

Q. When will the new satellites be launched?

A. SkyTerra currently plans to launch the first of the two next-generation satellites, being built by Boeing, in mid-2010 with the launch window for the second satellite opening in late 2010 through early 2011.

Q. What is your next generation integrated network design?

A. SkyTerra's next generation integrated network will be comprised of two multi-spot beam satellites and a United States and Canada-wide ensemble of terrestrial cell sites which will communicate with user equipment using a common set of L-band frequencies. Although not required by the FCC's February 2005 ATC order, an important element of SkyTerra's technology approach is the achievement of "transparency". Transparency means that devices will have the same form factor, aesthetics and cost as standard PCS devices or emerging data devices, and will be able to communicate with both terrestrial and satellite networks with no external hardware required.

Q. Who will benefit from this new system?

A. SkyTerra believes its next generation integrated network solution will significantly extend the market reach of wireless services within a number of vertical markets that are highly dependent upon the ubiquitous coverage and redundancy to be provided by its satellite network, including the following:

• Public Safety and Homeland Security organizations which require access to ubiquitous coverage, system redundancy, interoperability, priority access in emergency situations, push-to-talk and multimedia functionality;
• Consumers in search of ubiquitous coverage, improved safety and security features, the ability to receive content where and when they want it, and robust wireless broadband capabilities;
• Wireless carriers that want to expand the reach of their current networks and provide advanced content-delivery services;
• Enterprise Customers wanting expanded coverage and advanced voice and data applications using commercially available devices;
• Fleet Management which require ubiquitous service at attractive prices and enhanced functionality;  
• Coastal and inter-coastal maritime communications users, which require increased coverage for enhanced safety service; and
• Rural-Based and Rural-Roaming users will have seamless and transparent connectivity, which will be made possible by the satellite component of SkyTerra's next generation integrated network and will enable distribution partners to provide advanced communications services to rural communities.