Arianespace and Terrestar Networks Inc., a mobile communications operator and subsidiary of Motient Corp., signed Nov. 8 a launch-on-demand contract for Terrestar 1, touted as the largest-ever commercial communications satellite launched into geostationary orbit.

The contract provides for up to three dedicated launch vehicles and entitles Terrestar to a launch window for Terrestar-1 on an Ariane-5 commencing November 2007. The contract includes options for two additional launch vehicles whether by Terrestar or affiliates in Europe or elsewhere. The company "made the strategic decision to execute a firm, fixed- price contract for launch vehicles with Arianespace to avoid preemption by priority customers," said Robert H. Brumley, Terrestar’s president and CEO.

Terrestar-1 is under construction by Space Systems/Loral, and will offer up to 500 spotbeams and a design life exceeding 15 years.