Mobile Satellite Ventures LP (MSV), the joint venture of Reston, Va.-based Motient Corp. and Canada's TMI Communications and Company L.P. (A Bell Canada and Telesat Canada affiliate), has gained the necessary regulatory approvals to operate as a business in both the U.S. and Canada.

In June of 2000, Motient and TMI formed MSV to build a next generation mobile satellite system based on spot beam satellite technology supported by terrestrial base stations to serve all of North America. The new system will have the capacity to offer broadband to homes and offices. The new MSV combines Motient's satellite operations with those of Ottawa-based TMI.

The regulatory clearances trigger MSV's emergence as a standalone company although MSV's actual satellite operations are still subject to regulatory review and approval in both the U.S. and Canada.

As part of the deal to gain standalone status, MSV issued $55 million in convertible notes to its joint venture partners, an investor group including Motient, Telcom Ventures, LLC, Columbia Capital, Spectrum Equity Investors, and MSV Investors, LLC (a subsidiary of Rare Medium Group, Inc.).

Motient received $60 million in the transaction, of which $45 million was in cash and $15 million in a note. Motient remains a minority investor in MSV.

MSV benefits from the existing strengths of the two companies that include extensive satellite experience, an established client base and strong partnerships with distributors and developers of mobile satellite applications.

"Today, we've cleared an important regulatory hurdle in our quest to ensure the next generation of mobile satellite services and customers are the real winners," said Larry Boisvert, president and CEO of TMI Communications and vice chairman of MSV. "Our management and staff are 100 percent committed to operating profitably, providing superior customer service and developing exciting new applications and services."

Motient owns and operates a nationwide terrestrial network and provides two-way mobile and Internet communications services principally to business-to-business customers and enterprises.

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