COMSAT
| Company type | Public |
|---|---|
| Industry | Telecommunications |
| Founded | February 1, 1963 in Washington, D.C., United States |
| Defunct | 2007 |
| Fate | Merged into Lockheed Martin Global Telecommunications; assets sold off by 2007 |
| Headquarters | Washington, D.C. , United States |
Area served | Americas (including Brazil, Argentina, Colombia, Mexico, Peru, Venezuela) |
Key people | Leo D. Welch (initial board member), Joseph V. Charyk (initial board member) |
| Products | Satellite communication services, Marisat system, Startrack satellite communications |
| Owner | Various leading communications companies and independent investors (initially); later Lockheed Martin, then others |
| Parent | Lockheed Martin Corporation (1998–2000) |
Communications Satellite Corporation (COMSAT) was a U.S.-based multinational telecommunications enterprise, primarily known for delivering satellite communication services. By 2007, COMSAT maintained operations throughout the Americas, with offices in countries such as Brazil, Argentina, Colombia, Mexico, Peru, and Venezuela.
History
COMSAT was established pursuant to the Communications Satellite Act of 1962 and officially incorporated on February 1, 1963. It functioned as a publicly held company tasked with creating an international commercial satellite communications system. While subject to government oversight, its ownership was divided among leading communications companies and independent investors. The initial board of directors, appointed by President John F. Kennedy, featured prominent figures including Leo D. Welch and Joseph V. Charyk.
In August 1964, COMSAT played a key role in founding the International Telecommunications Satellite Consortium (Intelsat), which sought to provide worldwide satellite connectivity. The company launched Intelsat I (Early Bird) in 1965, marking a milestone in satellite technology. To further innovation in this field, COMSAT inaugurated its research division, COMSAT Laboratories, in Clarksburg, Maryland, in 1969.
The Federal Communications Commission’s Open Skies Policy in 1972 fostered increased competition within domestic satellite broadcasting markets. Responding to this environment, COMSAT introduced the Marisat system in 1976—a set of three geostationary satellites designed to serve maritime customers including the U.S. Navy—and created Comsat General as a subsidiary to distinctly manage its domestic satellite operations separate from its Intelsat commitments. The Marisat network subsequently became the foundation for the International Maritime Satellite Organization (Inmarsat).
COMSAT also offered two-way geostationary satellite communication services tailored for cruise ships and offshore ventures through platforms such as Startrack, initially developed by Techwest Data Systems and later acquired by UK Marine Data Systems.
Between 1998 and 2000, COMSAT merged with Lockheed Martin Corporation in a $2.7 billion transaction to form Lockheed Martin Global Telecommunications (LMGT). This merger positioned LMGT as the largest American stakeholder in both Intelsat and Inmarsat networks. Following Inmarsat’s privatization in 1999, COMSAT continued serving as the U.S. Signatory to Intelsat until plans for its own privatization were underway.
In March 2001, LMGT divested COMSAT Mobile Communications to Norway’s Telenor for $116.5 million; the sale included two Earth stations located in Connecticut and California. Later that year, Viasat acquired COMSAT Laboratories.
By late 2001, Lockheed Martin announced its withdrawal from global telecommunications services by dissolving LMGT and repositioning COMSAT General under its Space Systems division.
In 2002, COMSAT International Holdings purchased an 81% interest in COMSAT International from Lockheed Martin. Subsequently, in 2004 Intelsat acquired Lockheed Martin’s COMSAT General business for $90 million, concentrating on international fixed and mobile satellite offerings.
In 2007, BT Group took ownership of COMSAT International from CIH while Lockheed Martin disposed of its remaining stakes.
Sports team ownership
From 1989 until 2000, COMSAT owned the Denver Nuggets of the National Basketball Association and expanded its sports assets by acquiring the Quebec Nordiques in 1995 and relocating them to Denver as the Colorado Avalanche. The Nuggets acquisition was notable for including African-American partners Peter Bynoe and Bertram Lee who collectively held a 37.5% share. By 1992, COMSAT had bought out other shareholders.
Following the Avalanche purchase, COMSAT consolidated its Denver sports franchises under a subsidiary named Ascent Entertainment Group Inc., which went public in 1995 with COMSAT retaining an 80% stake. The teams experienced divergent success: the Nuggets faced challenges with poor NBA records while the Avalanche captured a Stanley Cup championship during their inaugural Colorado season (1996) along with five straight division titles. Additionally, COMSAT/Ascent developed the Pepsi Center, which opened in 1999 as home to both franchises; however, construction expenses impacted financial outcomes.
In 1997, COMSAT agreed to sell Ascent to Liberty Media, contingent upon Ascent divesting both the Avalanche and Nuggets. After nearly two years of negotiations, Ascent sold these teams to Walmart heirs Bill and Nancy Laurie for US$400 million. Disputes arose from shareholders over this valuation leading to a subsequent agreement with Denver financier Donald Sturm for US$461 million.
That deal fell through when Denver mandated a 25-year commitment to retain the teams locally before transferring land for Pepsi Center; Sturm declined personal liability should he pass away or sell prematurely. Liberty then assumed full control of Ascent but continued marketing the teams.
In July 2000, real estate investor Stan Kroenke acquired the Avalanche, Nuggets, and Pepsi Center for US$450 million. Kroenke is related by marriage to the Lauries and placed these assets into a trust guaranteeing their presence in Denver until at least 2025. Afterward, Kroenke organized these holdings under Kroenke Sports Enterprises.
See also
External links
- Articles with short description
- Intelsat
- Telecommunications firms founded in 1963
- Former subsidiaries of Lockheed Martin
- United States telecommunications companies
- Privately owned businesses headquartered in Washington, D.C.
- Establishments in Washington, D.C., 1963
- Owners of the Colorado Avalanche
- Denver Nuggets proprietors
- Mergers and acquisitions in 1999
- Telecommunications companies dissolved in 2007
- 2007 closures in Virginia
- American enterprises founded in 1963
- American companies established in 1963
- Companies of the United States by year of establishment
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