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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 16, 1997
GLOBALSTAR TELECOMMUNICATIONS LIMITED
(Exact name of registrant as specified in its charter)
Islands of Bermuda 0-25456 13-3795510
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
Cedar House, 41 Cedar Avenue, Hamilton, Bermuda HM 12
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (441) 295-2244
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Item 5. Other Events.
The press release of the registrant dated May 16, 1997, a copy
of which is attached hereto as Exhibit 99.1, is hereby incorporated by
reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
Exhibit 99.1 Press Release of Globalstar Telecommunications
Limited dated May 16, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
GLOBALSTAR TELECOMMUNICATIONS
LIMITED
(Registrant)
Date: May 22, 1997 By: /s/ Eric J. Zahler
Eric J. Zahler
Vice President and Secretary
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EXHIBIT INDEX
Exhibit Description
Exhibit 99.1 Press Release of Globalstar Telecommunications
Limited dated May 16, 1997
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Exhibit 99.1
Contact: John Cunningham
(408) 473-7145
GLOBALSTAR PARTNERS COMMIT TO
$275 MILLION PURCHASE OF 35 GATEWAYS
MAJOR GROUND SEGMENT MILESTONE REACHED
SEOUL, KOREA - May 16, 1997 -- Globalstar, LP (NASDAQ:GSTRF) announced today at
a signing ceremony in Seoul, Korea, the placement of purchase orders by the
partners that comprise Globalstar's Limited Partnership for 35 Globalstar
gateways to be installed around the world. These contracts, totaling
approximately $275 million, are a significant milestone for Globalstar and
represent a further commitment by the Globalstar partners to have operational
gateways ready to provide Globalstar service in the last quarter of 1998. The
first four gateways are nearing completion in Aussaguel, France; Yeoju, South
Korea; Dubbo, Australia; and Clifton, Texas, United States.
QUALCOMM, Inc. is responsible for the production and installation of
the antennas, radio frequency, and interconnection electronics for the
Globalstar gateways. The gateways, which include electric power and utility
connections, and facilities and housing for equipment and other necessary
infrastructure, will be completed before gateway electronics are installed.
QUALCOMM expects to begin shipping gateway electronics equipment in fulfillment
of the initial $275 million order in early 1998.
"We are very pleased with the signing of these contracts," said Mr.
Douglas Dwyre, President of Globalstar. "These important contracts mark a
major milestone for Globalstar and its partners, and ensure the delivery of
affordable, global mobile wireless communications to the world at the end of
1998 as planned."
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The $2.6 billion Globalstar system, comprising 48 low-Earth-orbit (LEO)
satellites and a global network of ground stations (or gateways), will allow
people around the world to make or receive calls using hand-held, vehicle-
mounted and fixed-site terminals. Globalstar will also provide messaging, data
transmission, fax and position location services. Globalstar now has service
provider agreements in 104 countries, and has also secured licenses in 14
countries. Globalstar will begin launching its satellites in the Fall of 1997.
Globalstar gateways are the interconnection points between the
Globalstar satellite constellation and existing terrestrial-based
telecommunications networks. Each gateway will contain up to four antennas that
track Globalstar satellites as they pass overhead in orbit, sending and
receiving Globalstar user signals (voice, fax and data transmissions). A single
gateway is expected to provide fixed and mobile service in an area as large as
Western Europe. The initial 35 gateways now under contract will provide service
coverage to 81 countries, and will develop approximately 75 percent of the
projected revenue for Globalstar's services worldwide. As Globalstar expands its
coverage, these gateways will eventually form part of a network of up to 100
gateways that will bring global voice, fax and data services to virtually every
inhabited corner of the world.
The partners involved in the gateway purchase contracts include:
AirTouch Satellite Services, United States; Vodastar of British Vodafone, UK;
Elsacom of Elsag Bailey, Italy; Hyundai and DACOM, South Korea; TE.SA.M. of
France Telecom and Alcatel, France; Globalstar Americas Corp. of Panama; and
Loral and its joint venture partners in Russia, China and Brazil.
Globalstar, led by Loral Space & Communications Ltd., is a partnership
of the world's leading telecommunications service providers and equipment
manufacturers, and includes AirTouch Communications, Alcatel, Alenia, DACOM,
Daimler-Benz Aerospace, Elsag Bailey, France Telecom, Hyundai, QUALCOMM
Incorporated, Space Systems/Loral and Vodafone. For more information on
Globalstar, please visit the company's web site at <http://www.globalstar.com>.
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