Industry Canada receives two applications from U.S. companies for Ka-band spectrum

Two established American companies are touting their individual strengths as reasons why each should be granted the right to operate a Ka-band satellite in the Canadian 107.3 degrees West orbital slot. But before either company can be granted a licence to launch a satellite, they will have to demonstrate adherence to Canadian foreign ownership provisions of the Telecommunications Act. Hughes Network Systems (HNS) and Pegasus Communications Corp. have filed applications with Industry Canada in response to Gazette Notice DGRB-007-01 to use the Ka-band spectrum to provide high-speed Internet and other services to residential and commercial markets across North America (RoW, Oct. 15/01). HNS is citing its experience in the satellite business and Pegasus notes its track record of serving rural and remote communities. While neither company provided proof or indicated in their applications that they are in discussions with partners to comply with Canadian law, Hughes, at least, told Report on Wireless that it is in talks with some firms. Joslyn Read, assistant VP regulatory and international affairs at HNS, assures that the company is currently in active negotiations on that front. "We are in serious discussions with a number of partner companies," she tells RoW. "(But we’re) not in a position to talk about which companies or the status of those (discussions)." Read also wouldn’t say whether the company will be able to finalize agreements before the licensing process is complete, but added that Hughes will keep Industry Canada apprised of its situation. "(It is) aware of where we are and what the status is," she says. HNS, a subsidiary of Hughes Electronics, is one of the world’s largest satellite providers and offers two-way high-speed Internet access via satellite under the DirectPC and DIRECTWAY brands. Its plan is to launch one of its Spaceway satellites in the 107.3 orbital position. The company has already contracted Boeing Satellite Systems to build a series of birds, the first of which will be put into commercial service in 2003. The remaining satellites will be launched at later dates. The 107.3 orbital position fits well with Hughes’ strategy, says Read, adding that this particular slot provides good coast-to-coast coverage of both Canada and the United States. If granted a licence, Read says that North American coverage of the Spaceway system will be fully operational by 2005 with the Canadian slot making up an important piece of the puzzle. Pegasus touts focus on under-served communities Pegasus is a direct-to-home satellite TV provider concentrating on rural and remote areas of the United States and also owns 12 TV stations with affiliations to Fox, Warner Brothers and UPN. In August, the company received five Ka-band orbital slots from the Federal Communications Commission that will be used to introduce a full suite of advanced services. "Our objective is to provide residents of rural and under-served areas with the same advanced digital services that are or will be available to customers located in urban areas, and to provide those services at competitive prices," the company writes in a letter to Industry Canada. Pegasus is in the process of designing and purchasing its first Ka-band satellite, which is to be launched in the 107.0 degrees West slot. At this point, it is still unclear whether the department will be able to license both the 107.3 and the 118.7 slots as was expressed in the Sept. 29 Gazette Notice (RoW, Oct. 15/01). The department does not want to go through a lengthy competitive licensing process and would prefer a joint-venture solution to filling both slots. However, that may be difficult if neither company is willing to entertain this type of proposal. Read tells Report on Wireless that Hughes isn’t interested in the 118.7 slot and its focus is really on the 107.3 position because of its central location.

Industry Canada receives two applications from U.S. companies for Ka-band spectrum

News | November 27, 2001

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