CAYENNE, French Guiana, July 1 (Reuters) - An Ariane rocket has launched from French Guiana on Wednesday the TerreStar-1 satellite, billed by the Arianespace rocket launch company as "the largest commercial communications satellite ever launched".

TerreStar blasted off from the European Space Agency's (ESA) launch centre in Kourou, French Guiana on the northeast coast of South America at 2.52 pm (1752 GMT).

It was released into orbit twenty-six minutes later.

Virginia-based TerreStar Corp TTSR.O plans to provide hybrid telecommunications to satellite and cellular handsets about the same size as a conventional smartphone.

The satellite is designed to provide service throughout the United States and Canada. Analysts estimated the cost of the satellite, launch and insurance to exceed $500 million.

TerreStar weighed 6.9 metric tonnes (15,200 lb) at lift-off and was built by U.S. satellite manufacturer Loral Space &a