ICO Global Limited, the satellite holding company formed by telecommunications entrepreneur Craig McCaw, announced that it has reached final agreement on its merger with New ICO Global Communications (Holdings) Limited.

ICO Global, previously known as ICO-Teledesic Global Limited, also has agreed with Teledesic Corporation to end their proposed merger to allow both companies the greatest flexibility in the current economic market.

In May 2000, ICO Global, based in Kirkland, Wash., proposed the mergers of ICO and Teledesic with ICO Global. Bellevue, Wash.-based Teledesic is developing a global broadband satellite communications network. London-based ICO is developing a mobile satellite system to offer high-quality mobile voice services and medium-speed wireless Internet and other packet-data services.

"To maintain maximum flexibility in this market, it is prudent to keep ICO and Teledesic independent as the needs for satellite services continue to evolve in the changing international landscape," McCaw said.

Both ICO and Teledesic will continue to aggressively pursue their independent -- yet complementary -- business plans. It is possible that a merger between the two entities may be re-evaluated in the future.

The ICO Global-New ICO merger is subject to ICO Global shareholder approval.