Posted: Thu, Oct 3, 2002, 8:13 AM ET (1213 GMT)
Broadband satellite company Teledesic announced Wednesday that it is suspending work on its first two satellites as it considers "alternative approaches" to its business. In January Teledesic signed a contract with satellite manufacturer Alenia Spazio for the construction of the first two spacecraft of a revamped 30-satellite system, barely meeting a deadline in Teledesic's FCC license. However, the company has since decided that it would not be "prudent" to continue given the current poor economic conditions, which co-CEO Craig McCaw described as "an unprecedented confluence of events in the telecommunications industry." Company officials said they are considering alternative options for the company; their press statement emphasized potential government uses for Teledesic's proposed broadband telecommunications system.

Related Links:

•  Teledesic press release
•  AP article
•  Reuters article
•  SPACE.com article