The agreement is the latest commercial systems integration project of Lockheed Martin Telecommunications, a division launched less than two years ago to marshal Lockheed Martin's expansive satellite telecommunications expertise for service providers in both developed and developing nations. Most recently, the division won a more than $550 million contract from India's ASC Enterprises Ltd. to deliver a turnkey advanced satellite system that will bring a wide range of mobile, fixed and broadcast telecommunications services to India from a single spacecraft.

The announcement followed a signing ceremony today at Lockheed Martin headquarters attended by Romanian President Emil Constantinescu. "Satellite-based communications systems are the most expeditious and efficient way to deliver telephony to the underserved areas of Romania. This venture of RomTelecom and Lockheed Martin would enable Romanians in villages nationwide to place telephone calls and have basic business services such as fax and data. This new system enables RomTelecom to meet its rural telephony mandate on time and cost effectively," Constantinescu said.

The joint venture, which is expected to be based in Bucharest, will develop a national wireless telephony network that will use VSAT terminals to connect nearly 3,000 villages to Romania's public switched telephone network. Terms of the agreement were not disclosed.

"We selected Lockheed Martin Telecommunications as our partner based on their ability to quickly deploy the technology and systems integration expertise we needed to become fully operational in the shortest possible time," said RomTelecom Chairman of the Board, Vlad Florian Tepelea. "They offered unparalleled knowledge of space-based communications systems and were willing to play an integral role in the continued development of Romania's telecommunications infrastructure," he said.

"Around the world, nations like Romania are using space-based wireless networks to extend telephony to geographically remote and underserved segments of their populations," said Claude Burgio, president of Lockheed Martin Telecommunications. "These networks provide wide geographic range for maximum market reach at minimum cost, and can be brought to market faster than terrestrially based infrastructures," he said.