$1 Billion Pledged to ICO-Teledesic Satellite Network

Top investors who include Microsoft Corp. Chairman Bill Gates have pledged nearly $1 billion, including $500 million in new funds, to help build the satellite network of ICO-Teledesic Global Ltd., the holding company for satellite assets of wireless telephone pioneer Craig McCaw said Tuesday. ICO-Teledesic plans to use satellites to beam high-speed wireless voice and data services based on Internet protocol technology to businesses, schools and individuals. The $500 million in new funding comes on top of a $1.2-billion rescue package led by McCaw that allowed ICO to emerge from Chapter 11 bankruptcy protection in May. McCaw then merged London-based ICO with Teledesic into the ICO-Teledesic holding company. Gates has committed to invest $100 million in ICO-Teledesic through his private investment vehicle, Cascade Investment. A fund managed by New York-based Clayton, Dubilier & Rice Inc. committed up to $350 million and $42.5 million was being added by Indian entrepreneur Subhash Chandra, who has already invested $22.5 million in Teledesic.