Inmarsat awarded its fourth-generation (I-4) satellite contract – for three satellites worth about $700 million – to newly formed Astrium, previously Matra Marconi Space. The satellites will be able to communicate with variety of terminals as small as a 1.5-pound personal digital assistant in what Inmarsat refers to as its Broadband Global Area Network or B-GAN.

The two other finalists for the contract were the Hughes Space and Communications unit of Hughes Electronics Corp. [GMH] and Lockheed Martin Corp. [LMT].

Two of the I-4 satellites will be launched in 2003; the remaining one will be a ground spare. The satellites and B-GAN system will be operational in 2004.

Inmarsat said the entire B-GAN system will cost about $1.4 billion, with the remaining $700 million spent on launching the satellites, earth stations, telecommunications infrastructure, distribution and billing and support systems. The company will contract separately for launch services.