Comsat Navy deal can proceed

Comsat Corp. now can proceed with a contract to provide satellite communications

to the Navy beyond January 2001, after a federal appeals court this week

overturned a decision to block the implementation.

Stratos Mobile Networks USA LLC had challenged the Navy's award of a

potential $111.9 million contract to Comsat in June 1999 in the U.S. Court

of Federal Claims, according to a Comsat statement.

Under the contract, Comsat Mobile Communications provides global satellite

service over the Inmarsat satellite system for high-speed data, voice and

multimedia communications. Comsat also provides terrestrial connectivity

to Navy facilities.

The Court of Federal Claims' decision had blocked implementation of

Comsat's contract beyond January 2001. But the U.S. Court of Appeals for

the Federal Circuit reversed and vacated that decision April 17, validating

the Navy's contract with Comsat.

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