The failure forced the London-based ICO Global Communications consortium to suspend future launches for several months. The consortium, which includes British Telecommunications, Deutsche Telekom and Singapore Telecommunications expressed disappointment at the lost satellite.

The satellite did not reach the required speed to put it into orbit because of a failure in the Russian rocket, the TsOuP said without specifying whether the satellite had fallen back to earth.

Earlier, Boeing announced that the Zenith rocket lifted off from the Sea Launch floating platform in the Pacific Ocean and launched into orbit the 2.7-tonne ICO F-1 satellite.

The system is to consist of 10 satellites to improve global telephone and fax communications.

The ICO F-1 is made by Hughes Space and Communications and was to orbit the earth every six hours at an altitude of 10,390 kilometres (6,440 miles).

In London, ICO Global Communictions head of corporate communications said "This was to be our first satellite and we are very disappointed.

"It is too early to set a date for the relaunch but it will be a few months. It is too early to say if we will use Sea Launch, it depends on what is available."

Johnson added: "It is a disappointment and slight complication but nothing we cannot overcome."

ICO Global Communications was established in January 1995. It aims to have its network in service by mid-2001. Johnson said that each of the 100 million dollar satellites is a giant communications station about the size of a double decker bus.

The consortiums shareholders are British Telecommunications, Deutsche Telekom, Koningklijke PTT Nederland, OTE of Greece, Singapore Telecommunications and Inmarsat.

The floating platform called Sea Launch was first used for a space launch on October 10, when a Zenith rocket delivered into orbit the US satellite DIRECTV-1.

The Sea Launch platform, close to the equator, was developed as a joint enterprise by the Boeing Corp., with a 40 percent stake, Energuia of Russia, with 25 percent, Kvaerner of Norway, with 20 percent, and the Ukrainian firms Iujnoe and Iujnashzavod, with 15 percent between them.

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