The Euro-African Satellite Telecommunication mobile-telephone project was shelved. The Aerospatiale Matra project, known as East, is the latest casualty of a market no longer certain that mobile satellite telephony can be profitable.

The $1 billion East project seemed close to rounding up an initial $400 million in capital early in 1999, but fell victim to a worsening financial climate.

An Aerospatiale Matra official said the project has not been completely abandoned but is "in the deep freeze."