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November 20th 2008

Issue 4

 

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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...

 

 


 

 

Globalstar reports continued subscriber growth

For the second consecutive quarter Globalstar continued to significantly grow its subscriber base and exhibit low retail churn. The Company completed the third quarter of the year with 329,388 subscribers or about 13,500 more than it had at June 30, 2008. This represents an increase of about 80 percent over the approximately 7,600 net subscribers added during the third quarter of 2007. During the first three quarters of 2008, Globalstar added approximately 45,300 subscribers compared to the approximately 22,500 subscribers added during the same nine-month period in 2007.

 

Consumer retail acceptance of the SPOT Satellite Messenger™ continued to grow throughout the United States and Canada during the third quarter. The Company surpassed its quarterly distribution target by expanding to over 6,200 points of distribution.

 

 

 

 

 


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