Time still available to license Ka-band, but industry players warn not to wait too long

Canada isn’t in any hurry to award a licence for a multimedia satellite, despite warnings from international regulators that it will take away our orbital slot if it isn’t used by 2005. This ‘use it or lose it’ deadline is posing a challenge to both Industry Canada and the private sector, which fear that the market for Ka-band services is too premature to attract the massive amounts of capital investment needed to build and launch a satellite. Canada appears to be taking a more cautious approach to licensing Ka-band than its neighbours to the south. Industry Canada was widely expected to license the slot last month, after receiving applications for the space from Telesat Canada and Bird Satellite Communications Inc (RoW, March 19/01). In the end, the government decided to award the C/Ku-band licence to Telesat in the 118.7 degrees west orbital slot, and wait for a better offer for the Ka-band in that position. "Essentially, we’re saying we remain open to licensing this position to an eligible carrier, but when the industry indicates that it is ready to do so," says Chantal Beaumier, director of space and international regulatory activities at Industry Canada. "When they are ready to put together a full plan, both from the technical and the business side of things, then we’ll review it and initiate a process." She adds that neither Telesat nor Bird tabled a commercially viable plan to implement a Ka-band satellite. In comparison, the U.S. has taken a more aggressive approach to awarding Ka-band and has paid the price for doing so. The Federal Communications Commission has had to revoke a number of licences because licensees failed to meet requirements. Critics say the regulator failed to properly scrutinize the commercial viability of applicants. The U.S. is preparing to award a second batch of Ka-band licences. Even Telesat acknowledges the dilemma faced by Canada in meeting an international deadline that’s not in synch with market demands. "I think the Ka-band market is pretty volatile right now from the standpoint of being able to raise money and fund Ka-band ventures," says Paul Bush, VP corporate development at Telesat. Market uncertainties notwithstanding, the International Telecommunication Union has given Canada until 2005 to launch a satellite into 118.7 degrees west. As a short-term measure, Industry Canada may revisit those filings to see if interim access to the spectrum could be granted if the deadline is missed. "Certainly there are risks with respect to our continued access, but we’re taking measures to alleviate that risk to make sure that it remains available for Canadian use," Beaumier told Report on Wireless. Canada has some breathing room before it needs to license this slot, but not much. Bush says the government needs to initiate a process by the end of next year at the latest, and award a licence within 18 to 24 months to give a company enough time to get a bird into orbit. Timing may be much less of an issue for Telesat than others, however. The Ottawa-based company is already heavily invested in Ka-band. Anik F2 is currently under construction and is scheduled to launch next fall. Telesat recently received approval to launch Nimiq 2 which will have a Ka-band payload. The deadline also isn’t worrying Industry Canada, at least not yet. Beaumier says she’s confident Canada will be able to secure the rights to that position and spectrum. "Maybe we’ll come to a point where we have to initiate something on our own to make sure it’s used," she says. "But at this point, we don’t feel that it’s necessary."

Time still available to license Ka-band, but industry players warn not to wait too long

News | 07/24/2001 4:00 am EDT

To keep reading, get a free trial.

Already a Subscriber?

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us