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Technology Stocks : Loral Space & Communications
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To: JMD who wrote (3153)5/20/1998 10:08:00 AM
From: Valueman  Read Replies (3) of 10852
 
Well, it certainly is a rare occurrence for a satellite to fail at 5 years old and in a stable orbit, having been functioning normally this whole time. It was launched in 93, so it is fairly modern--24 Ku-band and 24 C-band tranponders. It is insured, I am sure. I know that Intelsat does not insure their sats beyond 1 tear of age, but that is unique to them. If you look at a business model for a satellite, of the $10 million in operating expenses annually, probably $5 or 6 million are for insurance. It happens rarely though with an established craft like Galaxy IV(or Telstar 401 for that matter).
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