Gov’t clears way for Star Choice, ExpressVu to launch two-way Internet in 2004

Industry Canada has taken a major step in ensuring the government’s 2004 broadband deadline is met with its decision to grant a BCE Inc subsidiary, and a company owned by Shaw Communications Inc, approval to launch the country’s first Internet satellites. Bell ExpressVu and Shaw-owned Star Choice Communications received word Nov. 10 that their first-come first-serve applications for two orbital slots had been approved, subject to certain terms of conditions that were not disclosed. The two satellite TV companies have until March to apply for radio licences to operate the satellite facilities. ExpressVu and Star Choice each plan to launch a Ka-band spacecraft sometime in 2004. The orbital authorizations mark the first time Industry Canada has given any company other than Telesat Canada the right to build and launch its own satellite. "The key here that we really felt was important is that these two companies that are currently offering (direct-to-home TV) services have the opportunity to offer additional services that can compete with cable and other terrestrial services," says Jan Skora, director general radiocommunication and broadcast regulations at Industry Canada. ExpressVu and Star Choice currently use either Ku-band or DBS satellites to deliver one-way broadcast signals to their customers. Using those satellites for high-speed Internet requires a telephony return path. Ka-band satellites provide two-way broadband capabilities. Last month, Industry Canada committed to ensure that all communities, no matter how small or how remote, would have access to a broadband Internet connection by 2004. Satellite delivery is considered a key component of that strategy (RoW, Oct. 30/00). "The Ka-band satellite is almost like a cellular-type arrangement where you can have a lot of spot beams which allow you to cluster customer or Internet users, more than the Ku which is just one national beam," explains Peter Classon, president of Star Choice. "That’s one of the reasons that we were quite adamant that we needed to secure a Ka-band slot for the Canadian rights in order to be able to roll out our long term business plan for interactive and Internet services." With a geographic footprint that includes the continental U.S., both Star Choice and ExpressVu will likely seek out U.S. firms that are interested in leasing part of the satellites’ capacity to serve American customers. "Obviously we’ve given this some thought going forward as to whether or not there is a potential return on owning your own satellite and we believe there is," says Classon. "But it will require some strategic alliances and business partnerships with some American partners." Star Choice will launch its Ka-band satellite at 107.3 degrees west, the same spot the new Anik F1 will migrate into later this year. Anik F1 was successfully launched last Tuesday, and will replace Anik E2 which is currently occupying the 107.3 slot. Classon estimates the Ka satellite will cost between US$250 and US$275 million, not including launch, insurance or other costs. ExpressVu will co-locate its Ka-band satellite with its Nimiq DBS at 91 degrees west. Co-locating two satellites in the same orbital slot is technically possible, as long as they operate at different frequencies, says Paul Bush, Telesat Canada’s VP product management. That won’t be a problem, he adds, since Ka-band frequencies aren’t on either the Nimiq or F1. ExpressVu’s president says his company plans to work with Telesat, another member of the BCE family, to coordinate the planning, construction and launch of the satellite. "We haven’t put in place any structure yet, but certainly our intent is to work with Telesat on a project that would see us working with other partners as well to build a business on (the) Ka-band," ExpressVu president Dave McLennan told Report on Wireless. Manufacturers for the two satellites will likely be contracted by the spring. McLennan says they plan to enter the construction phase early next year. "We would certainly have to come up with (the initial downpayment) when we sign with a manufacturer and that would be in the Q1 timeframe," he says.

Gov’t clears way for Star Choice, ExpressVu to launch two-way Internet in 2004

News | November 27, 2000

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