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New Chairman Of Arianespace
     The annual general meeting of shareholders of
Arianespace named Jean-Marie Luton as Director of
Arianespace.
An update on Ariane 5 Operations
         Following the failure of the first demonstration
flight of Ariane 5, Arianespace has focused its efforts on
preparing the operational phase. The first launcher (Ariane
503) from the 14-launcher production contract awarded to the
European space industry in 1995 will be delivered to Kourou
towards the end of 1997.
     Arianespace will take over operation of the ELA 3
launch complex two weeks after the second Ariane 5
demonstration flight, now scheduled for the end of
September.
Tenth Contract for 1997
     Ariane has signed a  launch contract for Mexico's fifth
communications satellite, Morelos III. The satellite  will
be launched at the end of 1998.
     Morelos III, Mexico's fifth telecommunications
satellite, will take over for Morelos II.  Built by Hughes
Space Communications in El Segundo, Calif., for Telecomm de
Mexico, it will weigh 3,550 kg (7,810 lb) at lift-off.  It
uses an HS 601HP platform, with 48 Ku- and C-band
transponders.  Offering 10 times the power of Morelos II,
this new satellite will provide complete telecommunications
services for Mexico and Hispanic communications in Latin
America and North America.
             C&W To Buy BellSouth's Optus Stake
     OPTUS Communications unveiled a $A980 ($NZ1.097
billion) million-plus deal which will see UK
telecommunications giant Cable & Wireless (C&W) emerge as
its dominant shareholder with a 49 percent stake in the
carrier.
     C&W will buy out US group BellSouth Corp's 24.5 percent
stake in OPTUS, representing 490 million shares, for $980
million, plus an interest in a mobile operator in Western
Colombia, Latin America.
                         MCI on SBS 6
     MCI will use up to three Ku-band transponders on two
PanAmSat domestic U.S. satellites to build and deploy a
nation-wide satellite communications network for the U.S.
Federal Aviation Administration.
     MCI will utilise one transponder on PanAmSat's SBS 6 Ku-
band satellite in August to start operation of the FAA
Telecommunications Satellite (FAATSAT) program, which was
awarded to MCI in 1996. The FAATSAT system will consist of a
nation-wide, satellite-based communications network designed
to enhance the transmission of radar information; computer,
navigational and weather data; and air traffic controller-to-
pilot communications throughout the United States. FAATSAT
operations later will migrate from SBS 6 to PanAmSat's
Galaxy X satellite, following that satellite's launch mid-
1998, and expand capacity to two Ku-band transponders with
an option for a third.
             FCC Decision Grants License to MCHI
     Federal regulators have granted another license for
mobile two-way communications, including phone, paging and
fax to Mobile Communications Holdings Inc.
     The Ellipso project, the fourth Big LEO system to
obtain a U.S. license, will launch a constellation of 17
small satellites into a highly inclined and equatorial
elliptical orbits.
     With a majority of the financing in place for its $910
million Ellipso system, MCHI is progressing toward an
expected launch date in 2000 and initial service later that
same year.
     Employing the frequency-band sharing code division
multiple access (CDMA) call transmission technology, the
Ellipso system features a unique elliptical orbit design
with high line-of-sight angles to the satellites.
     The satellite-based voice and data communications
system will employ 17 satellites, including spares, in two
sub- constellations_Borealis covering the northern
hemisphere and Concordia covering the equatorial region and
the southern hemisphere.
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