(Satellite News via NewsEdge) Boeing Co. will pay SES Americom $70 million as part of the shutdown of the Connexion By Boeing inflight Internet service. Boeing is using SES Americom's AMC-23 satellite to provide the service over the Pacific Ocean.
SES Americom will recognize about $49 million of the payment as revenue in the third quarter, and the remaining $21 million in the fourth quarter.
Boeing also terminated services on the AMC-6 satellite in August.
Boeing will close Connexion at the end of 2006. The company is believed to have lost about $1 billion on Connexion, and will take a $350-million charge to shut down the service.
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