KDD Receives an Order for the Installation and Operation of the Network Management Center and the Backup Satellite Control Center for ICO Service
1997-012March 13, 1997



KDD (Japans Global Communications) and Satellite Phone Japan Ltd. (SPJ) has signed today a Memorandum of Understanding with ICO Global Communications (ICO), the mobile satellite telephone service provider, for the provision by KDD and SPJ of the installation in Japan and the operation of the Network Management Center (NMC) and the Backup Satellite Control Center (BSCC) for the ICO Service.

KDD and SPJ will jointly perform an important role in the provision of global ICO service through the installation and operation of NMC and BSCC.

The NMC is the core or brain facility of ICO service network, which will perform operation control, fault surveillance, traffic control of the ICO global network as a whole including the control of the Satellite Access Nodes to be constructed at twelve locations throughout the world.

The BSCC will back up the primary Satellite Control Center (SCC) to be located in the United Kingdom and will be managed and operated all the time to maintain the same functionality as the primary SCC for satellite control and positioning of satellites etc. so that BSCC can completely substitute whenever a fault occurs at UK SCC.

Both NMC and BSCC will be installed in the KDD Building (Shinjuku - Ku, Tokyo) with the total construction cost of about 6 billion yen. Operation will be performed by around 30 engineers/technicians. The initial contract term is ten years with option for the extension of further ten years.

The ICO service is a global mobile satellite telephone service which allows the user to phone, fax, or data-transfer with a hand-held terminal from anywhere in the world. The system is composed of twelve orbital satellites in orbit approximately 10,000km in altitude, twelve Satellite Access Nodes, Network Management Center and Satellite Control Center.

ICO, which was established in January 1995 by the initiative of INMARSAT (International Mobile Satellite Organization), is gearing up for the start of its commercial service in the year 2000. SPJ was established in May 1995, by the initiative of KDD, with its main objectives of investment in ICO, participation in ICO management and provision of ICO service in Japan.

KDD will continue its active undertaking to realize the global provision of ICO service.

[Attachment-1]

1. Profile of ICO
(1) Name: ICO Global Communications (Holdings) Ltd.
(2) Company location: Cayman Islands
(3) Chief executive officer: Olof Lundberg
(4) Capital: US$1.5 billion
(5) Principal shareholders: INMARSAT and 47 principal telecommunication carriers from 44 countries including Japan, China, India, Germany, Singapore, and South Korea

2. Profile of SPJ
(1) Name: Satellite Phone Japan Ltd.
(2) Company location: Nishishinjuku, Shinjuku-ku, Tokyo (in KDD Building)
(3) Chief executive officer: Kazuo Yoshida (president; chairman of ICO)
(4) Capital: 10.8 billion yen
(5) Principal shareholders: KDD (53.2%), NTT DoCoMo, IDO/Toyota Motor, Japan Telecom/Digital Phone Group (Tokyo, Kansai, and Tokai), Sumitomo Corporation, Nissho Iwai Corporation, Marubeni Corporation, etc. (25 companies)

(Note) ICO: From the acronym for Intermediate Circular Orbit, which is an orbit of around 10,000 km in altitude.