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November 20th 2008
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Getting Too Ambitious?
Is there such a thing as being too ambitious? In the space industry,
after all, the whole idea is to push boundaries and innovation.
In terms of satellite communications, there are several well-publicised
and highly ambitious projects currently underway. As the demand
for satellite-based services such as broadband and location based
applications is on the rise, the ideas from companies attempting
to satisfy this demand with more capacity and more improved services
are becoming increasingly enterprising.
Three companies have taken on projects that involve multiple satellite
launches in the hope of providing more of what customers want. The
project that is probably receiving most publicity at present is
that of O3b networks, that has embarked on a programme that will
see a total of 16 satellites orbited in 2010 and beyond. That may
not sound too out of the ordinary, but the hope is that only two
launches will take place. Eight satellites will be lofted per launch.
Sea Launch is the provider that has been tasked with coming up with
a special dispenser that will enable these satellites to be placed
into orbit during the same launch. It is hoped that this new constellation
will basically revolutionise the way in which IP, 3G cellular and
Wi-Max networks connect, reducing costs for ISPs and mobile operators
and providing connectivity between developed and emerging markets
worldwide, thus helping bridge the digital divide. It is an extremely
exciting and fascinating project but, on face value, this certainly
appears to be an extremely high-risk operation. 2010 is also not
far away. Is this really going to be enough time to create a purpose-built
dispenser that can assure the successful orbit of eight satellites
at once?
SWANsat is another enormous project that is promising to bring
the communication revolution to all with its Super Wide Area Network.
Envisioned to resemble ‘Wi-Fi or Wi-Max on steriods’,
the plan is that at least three high-powered geosynchronous telecommunications
satellites will be launched that will provide better worldwide telecommunications
system capabilities than any existing system. It is claimed that
the SWANsat constellation, to be launched at the end of 2012, will
effectively be a global Wi-Fi hotspot. It will enable anybody with
a handheld mobile device to connect to its services that will include
everything from two-way voice communication to video conferencing,
Internet access and many, many more applications – all for
$100 per month or less. It is being hailed as the project to break
down the digital divide, but can this come to fruition on time or
is it just pie in the sky?
The most recent multiple satellite launch to hit problems has been
Orbcomm’s fleet of 6 satellites that were launched in June
2008. The satellites are to provide additional capacity and improved
message delivery speed for Machine-to-Machine communications. They
are also equipped with Automatic Identification System payloads
for ship tracking and other navigational needs. During in-orbit
testing, all 6 have been found to have pointing anomalies that could
potentially impact on their performance. This is a very disappointing
problem for the company as this is the first instalment of a plan
to launch 18 satellites up to 2011 to upgrade and expand its existing
fleet of 29 spacecraft.
So what is the point to all this? Well, it is clear that there
is demand for these services and yes, it is important that the industry
meets this demand in a timely manner. Launches are expensive and
operators want their satellites up in orbit and earning money as
quickly as possible. But what are the consequences of this? These
highly ambitious projects reflect a forward-thinking, positive and
creative industry that we should be proud of but perhaps thought
should also be given to the fact that it is slightly too ambitious
and that quality and not quantity is the issue. For an operator
to either lose or have problems with the satellites they lofted
in a multiple launch means that they have taken an enormous risk
in a dodgy economic climate. On the other hand, and at the risk
of sounding too pessimistic (or realistic), these projects could
go without a hitch and usher in a whole new way of doing things.
It will be interesting to see whether these projects come to fruition
on time and on budget and we should wish them luck and admire their
innovation and motivation to bridge the digital divide.

US Federal Court grants
Telenor motion
The US Federal
Court for the Southern District of New York on 19 November granted
Telenor's motion requesting that Alfa Group companies Altimo, Alpren,
Hardlake and Storm be held in contempt of court for their failure
to obey a November 2, 2007 court order upholding Telenor's arbitration
award against Alfa Group subsidiary Storm. The Court held all four
companies in contempt, imposed escalating fines, and ordered Storm
to sell its shares in Ukrainian mobile operator Kyivstar within
90 days, unless within that period, Alfa has divested its shareholdings
in excess of 5 per cent of Turkcell and Ukrainian High Technologies...

SingTel Group seals S$1.075 billion
of credit
Singapore Telecommunications Limited (SingTel) announced
that it has entered into agreements for credit facilities of approximately
S$1.075 billion to refinance existing facilities and for general
working capital purposes...

TerreStar sells remaining interest
in SkyTerra
TerreStar Corporation
has announced that it had sold its remaining 29,926,074 shares of
non-voting common stock of SkyTerra Communications, Inc. for a total
of approximately $123 million in a series of transactions. The proceeds
of the sales will be used for working capital and general corporate
purposes and are expected to meet TerreStar's capital needs into
2010...

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