Telesat Canada gets support from key satellite users in licensing process

Canada's one-time monopoly satellite service provider Telesat Canada has secured the support of two major customers and the two main industry associations as part of its bid to acquire a number of satellite orbital licences (RoW, Dec. 14/06). Ciel Satellite LP, the other bidder to respond to DGRB-001-06, received minimal support. The vast majority of interveners noted in their comments filed last month that it would be best for Industry Canada to approve Telesat over Ciel for a number of the disputed licences due to its substantial experience and the fact that it already operates satellites in some of the orbital slots. According to the Canadian Association of Broadcasters (CAB) and the Canadian Satellite Users Association (CSUA), it is paramount for the department to acquire the rights to all orbital resources in the existing Canadian direct-to-home (DTH) neighbourhoods. As well, both organizations note that existing satellites should be protected from interference caused by other domestic and international systems. They believe that Telesat is best suited to accomplish this. "In the CAB's view, it is preferable that the facilities required in the critical DTH neighbourhoods in the 17 GHz and Extended Ku-bands be capable of being integrated into future Telesat spacecraft that will replace those already flying in these orbital slots," reads the broadcasters' association submission. The CSUA notes in its comments that Bell ExpressVu LP and Star Choice Communications Inc. have evaluated the applications from both Telesat and Ciel and have declared their support for Telesat. The CAB does throw some support behind Ciel when it comes to the 17 GHz BSS and Ka-band licences at the 118.7 degrees west orbital location. Without naming Ciel in its comments, the association "encourages the department to take decisions aimed at providing additional choices for users, as well as competitive pricing." Telus Corp. is Ciel's big-name supporter. The two companies have inked a memorandum of understanding to further develop broadband services using Ka-band spectrum in the 118.7 degrees west orbital slot (licence 23). The incumbent telephone company acknowledges the benefits that Telesat has brought to the Canadian satellite services market, but Telus makes no bones about its support for a competitive satellite services market, and that Ciel should be awarded some of the licences available. "Telus is pleased to see that Telesat is continuing their history of innovation and growth, and feels that the addition of Ciel as a competitor will create a healthy and competitive market dynamic that will benefit Canadians, as well as the domestic satellite industry," writes Telus. The telco highlights the potential economies of scale that both Telesat and Ciel could benefit from regarding the licences available at the 91 degrees west and 118.7 degrees west orbital locations as evidence that Ciel is equally well-positioned in the market. "As it appears that existing (or soon to be launched) satellites in these positions do not have large commercial payloads for both the Ka and 17 GHz BSS frequencies, the potential for realizing economies of scale for these licences is comparable for a satellite launched by either a new or incumbent operator," reads Telus' comments.

Telesat Canada gets support from key satellite users in licensing process

News | January 11, 2007

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