WorldSpace Satellite Radio: Fading Signals?
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR239 Case Length : 22 Pages Period : 1990-2006 Organization : WorldSpace Corporation Pub Date : 2006 Teaching Note : Available Countries : The US, India, Africa
Themes: Corporate Strategy
Industry : Media,
Entertainment, and
Gaming
To download WorldSpace Satellite Radio: Fading Signals? case study (Case Code:
BSTR239) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 400; For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges
» Business Strategy Case Studies » Case Studies Collection » Business Strategy Short Case Studies
» View Detailed Pricing Info » How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
|
<< Previous
Background Note
Noah Samara (Samara), the founder of WorldSpace5,
was born in Ethiopia, and later migrated to the US for higher education. He
founded WorldSpace in 1990 in Washington DC, to provide satellite radio services
to the African continent and other third world countries.
In Samara's view, there was a distinct need for information in these developing
countries, but many of them lacked the infrastructure to receive and disseminate
such information. The stated objective of WorldSpace was to provide news,
education, and entertainment along with other useful information to the
developing regions of the world (Refer to Exhibit II for a note on satellite
radio).
|
|
In the early 1990s, Samara participated in the 'World
Administrative Radio Frequency Conference'6
held in Torremolinos in Spain, which diplomats from 127 countries attended. To
provide digital audio broadcasting, Samara required 25MHz of the L-band7,
which was a slice of the 1000MHz electromagnetic spectrum. This spectrum range
was used by countries for communication purposes.
|
After several rounds of negotiations, the
International Telecommunication Union8
agreed to grant Samara the required range in the L-band. Samara also
received the US government's approval for the first US Federal
Communications Commission (FCC)9
satellite radio license.10
The initial investment of $1.1 billion11
in WorldSpace was made by two Saudi Arabian businessmen, Khalid bin
Mahfouz and Mohammad Hussein Al-Amoudi (Al-Amoudi). Together they held
an 80% stake in the company. Another businessman, Saleh Idris bought a
6% stake. Alcatel Space, a subsidiary of Alcatel Corporation12
of France, built the geo-stationary satellites13,
which were to broadcast WorldSpace signals around the world. |
Excerpts >>
|