Boeing books biggest satellite contract

Boeing announced an agreement with Mobile Satellite Ventures on Wednesday to build three satellites.

Boeing announced an agreement with Mobile Satellite Ventures on Wednesday to build three satellites and associated ground systems, which the aerospace company described as its largest satellite contract in nine years.

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Financial terms were not formally disclosed, but Reston, Virignia-based Mobile Satellite Ventures Chief Executive Alexander Good said on a conference call that the deal is worth between $500 million and $1 billion. Boeing said it is the company's biggest satellite deal since an order for two large satellites in 1997.

Boeing said three of its satellites will combine satellite and cellular technology to provide the world's first commercial mobile satellite service using both space and terrestrial elements. The network will deliver voice and data coverage in North and South America.

Boeing said the satellites will use MSV technology to deliver service to wireless devices similar to cell phones. Boeing also will develop the ground-based systems.

The satellites are scheduled to launch in 2009 and 2010. Privately held MSV is a satellite communications company that provides voice and data services to clients in North America, Central America and parts of South America.