Ciel hoping to provide broadcast industry with new choice in satellite provision

New entrant Ciel Satellite Group is hoping to nab the 129 degrees west orbital slot over a competing bid from Telesat Canada to provide broadcasters, and cable and direct-to-home satellite TV operators with choice in their satellite provider. The company, with the backing of some satellite industry heavyweights, has applied to develop the real estate, as has longtime satellite operator Telesat. The applications follow Industry Canada’s call for expressions of interest to develop the 129 and 138 degrees west orbital positions, issued earlier this year (DGRB-001-4). Ciel has also applied to develop the Ka-band in the 118.7 degrees west orbital location and the C- and Ku-bands in the 109.2 degrees west orbital slot. "Ciel believes that only with a plurality of orbital positions will a new entrant be able to provide the range and quality of service offerings necessary to sustain real competition in the domestic satellite industry," the company, backed by shareholders Barrett Corp., Smyth Satellite Holdings Inc., SES Americom Inc. and an unidentified partner, tells Industry Canada. Unfortunately, much of its expression of interest to utilize the 12 GHz broadcasting satellite service (BBS) frequency band at the 129 degrees west orbital position is not on the public record due to confidentially issues. In its submission to Industry Canada, however, Ciel notes that it has had encouraging discussions with potential users of the satellite, including broadcasting distribution undertakings (BDUs), specialty programming providers and conventional broadcasters. At licence renewal hearings for Star Choice Television Network Inc., much of the blame for the DTH satellite TV distributor’s failure to meet regulatory obligations to carry channels was blamed on a lack of satellite capacity. The problem of the satellite shortage was pinned on Telesat, particularly its failure to get its Anik F2 satellite in orbit on schedule. Ciel also notes that it has strong letters of support from equipment suppliers in Canada, and that there is a high-level of support for introducing a new Canadian satellite supplier to the market and confidence in Ciel’s partners. In a letter to Industry Canada, the would-be new entrant states, "Indeed Ciel firmly believes that if sustainable domestic satellite competition among Canadian service licensees is to be attained, the time is now or the opportunity will be lost." The department is struggling to meet a tight deadline to fill the spot. Missing it will see the slot revert back to the International Telecommunications Union for licensing, and Industry Canada must license a satellite operator as quickly as possible so that the eventual winner can meet the in-service deadline of Aug. 25, 2005. Industry Canada has received applications that competed with Telesat in the past, but on two separate occasions the department concluded that the country’s homegrown operator was the best choice. In 2001, Bird Satellite Communications, a $1-billion venture headed by Richard Stursberg, lost its bid for a spot at 118.7 degrees west (CCR, June 21/01, March 29/01). More recently, Barrett Corp. launched an unsuccessful bid for the 72.5 degrees west orbital slot. Telesat tells Industry Canada that it plans to develop the 129 degrees west orbital position using a BBS satellite similar to its Nimiq series. The company expects that the new satellite will carry 32 24MHz BBS transponders. Telesat further notes that it will be virtually impossible to build, launch and put into service a new bird by the deadline. It proposes to use an existing in-orbit satellite until it builds a new satellite. In the public section of its application, Ciel doesn’t indicate whether it plans to use an existing in-orbit bird, has one available, or will build a new one. In its application, the company, however, notes that it plans to "bring a satellite into service well before" the Aug. 25, 2005 deadline.

Ciel hoping to provide broadcast industry with new choice in satellite provision

News | 06/04/2004 4:00 am EDT

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