Here is the story on the Echo III and IV insurance claims:
EchoStar Has Its Own Troubles On Two Satellites
EchoStar Communications revealed that its fourth satellite, which recently
completed primary testing more than two months after launch, has
experienced additional problems, resulting in the failure of one primary
and one spare transponder.
With the new troubles, the company decided to locate EchoStar IV at 148
degrees. That is a switch from its original destination at EchoStar's
full-CONUS slot at 119 degrees.
The company also expanded on problems aboard EchoStar III, located at 61.5
degrees and launched Oct. 5, 1997. Some of the electric power converters
(EPCs) on the satellite are operating at higher than expected temperatures.
The high temperatures may require certain transponders to be turned off for
several weeks during summer and winter solstice seasons to avoid
overheating, the company said.
As a result, EchoStar III will be operated at 120 watts per channel,
typical for an 18-inch dish service. In that mode, tests indicate
substantially all of the satellite's 32 transponders could be available for
the full life of the satellite notwithstanding the anomalies. If the
satellite was operated at a "super high" 230 watts per channel,
approximately half of its 16 channel capacity would be unavailable during
solstice seasons by the end of the satellite's planned life, the company
said.
Both EchoStar III and EchoStar IV are A2100AX design satellites built by
Lockheed Martin. Problems aboard each satellite could lead to an insurance
claim of more than $200 million.
The troubles follow anomalies experienced aboard satellites operated by
Hughes' PanAmSat and DirecTV units. The DirecTV satellite, DBS-1, saw its
spacecraft control processor fail on July 4, forcing the company to switch
to a spare processor.
Soon after launch on May 8, EchoStar IV's south solar array didn't properly
deploy, resulting in a reduction of power available to operate certain
transponders. An additional unrelated anomaly discovered last week resulted
in the new transponder failure.
EchoStar IV is expected to provide local, educational, foreign language,
data and other niche services by Sept. 1. The satellite will have the
capacity to provide more than 150 additional channels to the Western United
States.
"Unfortunately, the failures we have experienced and the fact that we share
the 119 degree orbital slot with Primestar, means that we don't have the
flexibility to operate some of the back up capacity built into the
satellite if we positioned EchoStar IV at 119 degrees," EchoStar Chairman
Charlie Ergen said. "The new plan will allow us to best utilize the
significant capacity of our four DBS satellites."
EchoStar intends to file an insurance claim with respect to EchoStar IV in
the near future. The company expects to use insurance proceeds, together
with other funds, to launch a new DBS satellite at 119 degrees in about
three years. The company also expects to file an insurance claim with
respect to its EchoStar III satellite.
Claims will be filed through EchoStar's insurance broker, J&H Marsh &
McLennan.
|
