The holding company says ICO's services, including mobile voice and data connections, will be available in 2003. Teledesic would begin its service -- fixed data connections via satellite at much higher speeds -- in 2004.
Both of those plans are contingent upon new waves of funding. ICO, for one, needs another $2.1 billion to
its service. Teledesic will require a total of $9 billion for its service, said Nyhus.
Bringing Teledesic and New ICO under joint control could reduce operating costs.
"There are a lot of natural synergies between New ICO and Teledesic," said Roger Nyhus, a spokesman for Teledesic. Nyhus said one set of ground stations could serve both companies, saving costs.
New ICO was previously ICO Global Communications, which filed for bankruptcy last year before it could successfully launch any of the 12 satellites it needed to provide a mobile satellite telephony service.
McCaw rescued the company by leading a $1.2 billion investment package, and has since said he plans to combine ICO's vision with that of Teledesic, which he also controls.
In the latest funding announcement, Gates, one of Teledesic's primary founding investors, will invest another $100 million of his own money in the company. Private investment firm Clayton, Dublier & Rice will give $150 million, with options to invest another $200 million at a later date. Another $42.5 million will be given by several investors, including Subhash Chandra, the founder of India's largest private television station.
Additionally, Nyhus said today that McCaw's own investment firm, Eagle River Investments, had previously given $590 million to save ICO. While it had been known that $1.2 billion had been raised for ICO, it was unclear how much McCaw had given of his own money.
ICO's bankruptcy filing took place soon after one of its competitors, Iridium, went bankrupt itself. Iridium has since been unable to find an investor to save its service, and says it will deorbit its satellite fleet.
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