Malaysia is hooking up with the Motorola Inc-led Iridium Inc global wireless and satellite-based telecommunications system through a joint venture company called Iridium Malaysia. Telekom Malaysia Bhd will be the single largest shareholder in Iridium Malaysia, which was formally launched last month, with a 40% stake. The two other partners are oil and gas conglomerate Delcom Services Sdn Bhd and Thai Satellite Telecommunications Co Ltd, each of which will hold 30% of the concern. The company is expected to start life with paid-up capital of some $390,500, said chairman Tan Sri Rashdan. Iridium Malaysia will be responsible for providing the links between an Iridium gateway in Thailand and the local telecommunications networks in Malaysia. The vehicle for this will be Thai Satellite, which independently became an Iridium shareholder in August 1983 when it subscribed for $80m of the latter’s shares. The company currently holds the exclusive right to own and operate Iridium ground systems and services in Malaysia, Singapore, Thailand, Vietnam, Laos, Cambodia and Burma. Although Iridium Malaysia will initially provide service only in Malaysia, officials said it may expand to several other South-East Asian countries. According to Boonchai Bencharongkul, president and chief executive of Thai Satellite’s parent company United Communications Industry Co Ltd, a Thai cellular and paging operator, it also wants to bring its new partners into other countries. We want this to be truly an Asian gateway to the Iridium network, he said, noting that Vietnam has been invited to participate in the project. The start-up is also looking to invest in the South-East Asian gateway, a ground station to provide relay services between satellite and local terrestrial cellular systems. Building costs for the ground station will be between $20m and $25m with construction start late this year. According to Iridium, the planned gateway will take between one and one-and-a-half years to reach completion.
