Government calls for Ka-band proposals after Star Choice returns licence

Telesat Canada is evaluating a government notice calling for proposals to build and operate a multimedia satellite after a previously assigned orbital slot unexpectedly became available. Star Choice Communications Inc’s unusual move this summer to hand back its licence to build and operate a Ka-band fixed satellite in the 107.3 West longitude orbital position has prompted Industry Canada to launch an expedited licensing process to fill the empty slot. Late last month, the department released a paper calling for proposals to develop and operate a satellite in the vacant slot – Gazette Notice DGRB-007-01. Applications for the slot must be submitted to Industry Canada by October 30, a short amount of time to develop a business plan in a difficult economy. Under International Telecommunication Union rules, Canada must deploy a satellite in the slot by April 25, 2004 or risk losing it to another country. "There’s no doubt that Telesat is going to look at it, but we’re focused on building Anik F2 and Anik F3, as well as Nimiq 2," says Paul Bush, Telesat’s VP of corporate development. "We’re investing heavily in terms of new infrastructure. The issue in today’s climate is access to capital, access to partners… At this point, we’re just reviewing what the options are and it’s not clear to me that the path leads forward with regards to 107.3." While Telesat is a potential applicant, Bird Satellite Communications Inc has confirmed that it isn’t interested in the satellite slot. The company, formed last year to bid for the Ka-band spectrum at the 118.7 position, has essentially dissolved. Richard Stursberg, former Canadian Cable Television Association president and the key person behind Bird, told CCR that Bird is no longer active and thus won’t apply for the 107.3 slot. Bird and Telesat were denied licences to operate Ka-band facilities in 118.7 this past summer. The timing of Industry Canada’s call for proposals for 107.3 couldn’t be worse. With financial markets all but dried up and the economy nearing a recession, developing a business plan and securing capital and partners for a satellite project will be challenging. "In today’s financial climate and business market climate, it’s very uncertain as to how you would put together a business case that would be successful," Bush told CCR. Brad Shaw, Star Choice’s senior VP of operations, says financing was a key reason his company decided to return the licence, which was awarded in November 2000 (CCR, Nov. 23/00). "In looking at all the opportunities in Ka technology I think there’s other opportunities other than the 107.3 slot for us, and so we wanted to keep all our options open rather than committing down one path," he said. "And of course it’s a huge financial commitment when you look at putting something up in the sky like that – over $500 million… our concern was that and the need to partner with a U.S. company…" Shaw says Star Choice had initial discussions with U.S. satellite companies about possibly partnering on a Ka-band project, but talks did not pan out. "There were initial discussions with a variety of different providers and each one had different needs and different timing, so trying to marry that up just wasn’t going to be possible at this time. "There were certain timelines with Industry Canada ... and we just couldn’t meet those timelines and the financing and everything else. And I think there are other Ka possibilities and we’re continuing to look at those." Shaw declined to discuss those possibilities, but clearly one of them is to buy or lease Ka-band capacity from Telesat, whose Anik F2, Anik F3 and Nimiq 2 satellites will all have Ka-band payloads. If more than one acceptable application is received for the 107.3 slot, Industry Canada says it may concern assigning the Ka-band orbital position at 118.7 as well. For more on this story, read the next edition of CCR affiliate publication, Report on Wireless. Background information can be found in the July 24/01 and Nov. 27/00 editions of RoW.

Government calls for Ka-band proposals after Star Choice returns licence

Broadcast | October 11, 2001

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