Space Systems/Loral (SS/L) announced in April 2005 completed design reviews of TerreStar Networks, Inc.'s geostationary satellite, TerreStar-1, and entered into the construction phase of the Mobile Satellite Services (MSS) program. The TerreStar satellite, together with an Ancillary Terrestrial Component (ATC), is designed to provide next-generation, 2 GHz mobile voice and data communications, monitoring, and messaging services throughout the United States.

Scheduled for delivery in 2007, TerreStar-1 has a service life of 15 years and will carry a state-of-the-art MSS payload featuring a large unfurlable reflector. The satellite will be capable of generating hundreds of spot beams covering the Continental U.S., Canada, Alaska, Hawaii, Puerto Rico, and the U.S. Virgin Islands. SS/L's contract with TerreStar also includes an option for the construction of a second satellite, TerreStar-2.

An FCC decision earlier this year opened the door for TerreStar Networks, and other select satellite operators, to incorporate an ATC with its satellite-delivered communications service. The previously unavailable 2 GHz frequency band will allow MSS operators to provide advanced mobile voice and data services. These services will be enhanced by ATC technology, which allows for coverage in areas where a satellite's signal could be blocked, including urban canyons, dense forests, or other areas out of the satellite's line of sight.