ICO and India's monopoly provider of international telecom services expect to complete the final and detailed agreements prior to the world-wide launch of ICO's service in the third quarter of 2000, according to releases from the companies.

ICO and VSNL will work towards establishing a joint venture company that would take the lead in the distribution of ICO's services in the country and in developing the full market potential for ICO's services.

ICO's services will be based on a new generation of pocket-size mobile phones and semi-fixed and specialist applications that will allow users to make and receive calls from anywhere in the world.

The handsets will be dual mode--capable of working on satellite links as well as cellular and PCS networks. Customers with ICO handsets will be able to roam between ICO and mobile networks around the world. If no cellular network is available, the handset will roam to ICO's satellite network to offer customers unrestricted mobility and accessibility.

Affordable services will be available to a wide range of users--from people in remote rural areas to international business and aeronautical sectors, the releases said.

They quoted ICO chairman and chief executive officer Olof Lundberg as saying: "We are pleased and proud to have taken this step in our cooperation with VSNL. The association with VSNL, one of the largest shareholders in ICO Global Communications, will give ICO the advantage of its expertise and backing of the leading telecom service provider in India. We will continue to work closely with VSNL and strive to ensure that ICO's mobile satellite services are the very best available to users in the country."

They also quoted VSNL's acting chairman and managing director Amitabh Kumar: "This is a very significant step in the development of our collaboration with ICO and we are delighted to see our partnership go forward. India promises to be a major market for satellite mobile communications, and we look forward to making a success of ICO's services in the country."

ICO's senior vice-president and general manager in charge for India operations said: "ICO is putting in place a global mobile personal communications system (GMPCS) that will be superior not only because of the technology used but because of strong local partners to enable them to tap the potential market for GMPCS solutions. We are confident that our partnership with VSNL and the benefits flowing from its understanding and expertise of the Indian telecom environment will enable ICO to be the leading GMPCS provider in the country."