Jim:
Anyone is a possible suitor at this point. All the divisions are capable of being peddled. If you only want G*, sell SS/L to Boeing and sell Skynet/Orion to GE, Alcatel, LMT, or Hughes even. It could be broken up and sold, or all the pieces added to a bigger pile of assets. All I know is that companies I have owned in the past that were undervalued no matter how you sliced it, were eventually afforded a fair price. Time will tell.
The relationship with Alcatel could become even more cozy if Loral joins in the following ventures. Recall that Schwartz was asked once about the possibilities of doing more with Alcatel and he responded that they are looking at scenarios in Russia(ick) and South America. Well, here they are, and Alacatel is a lead player in both. Will Loral step up to the plate too? These seem like natural additions to the Loral Global Alliance(I love that name--somewhat Borg-like!).
Andean Satellite To Be Launched in 2001
Santa Fe de Bogota El Tiempo 5 Apr 99
Report by Carlos H. Jimenez Y.
Cali -- Businessmen from the five Andean countries will no longer,
beginning in the year 2001, have to go to the United States to clinch big
deals. They will be able to do so comfortably from their offices by
exploiting the advantages of satellite communications. This is the
conclusion reached by the international assembly of shareholders of the
multinational corporation Andesat S.A. Ema, which will install two
satellites whose footprint will extend further than this hemisphere and
will even reach part of the UK.
When the firm was formally installed two years ago, it was said that one
satellite would be used. But a study carried out from Canada to Patagonia
showed that the demand was far greater that was originally estimated,
according to Andesat S.A. Executive President Luis Hernando Escobar. The
two satellites' footprints will be aimed at the entire American hemisphere
and a broad zone in Western Europe. There are currently two firms that are
specialized in downloading satellite signals at the Palmaseca Free Zone.
The project's initial investment was budgeted for $300 million, but is has
now reached $520 million, according to the Andesat S.A. Ema executive
president.
Likewise, it was also learned that French firm Alcatel will join the
project with a 70 percent majority participation. Alcatel's record as a
satellite operator, builder, and user give broad backing and security to
advance toward the goals.
September Construction
The multinational corporation's director added that with the end of the
first stage, which consisted in the investigation of the pre-feasibility,
the second stage begins, which includes the construction beginning
September and ending in the year 2001, with the launch of the first
satellite into orbit.
For the time being, the terrestrial station will remain in the Cali Free
Zone, but such aspects as security and economic advantage will be
examined, which will define whether it will remain definitely in Cali.
"The launch demands a previous space reservation between November and
December of the year 2001," Escobar said, who added that the location of
the geostationary satellites, each with 56 carriers, is planned for an
altitude of 36,000 km. Each will weigh between 4 to 5 tons.
The greater coverage avoids the need for a system of links, according to
what was said in the assembly. According to the studies, a single
satellite is enough to communicate with an entire hemisphere and with
Western European countries such as Spain, Portugal, France, Italy, and an
area in the UK.
Andesat S.A. has become an Andean multinational corporation and is the
first business at government level between the five Andean Pact countries,
with an equal participation of 20 percent each.
This idea goes back 20 years. The project was consolidated in July 1997 in
Cartagena after the charter of the corporation was signed and the
participants agreed to contract the studies and the place the satellite
into orbit.
Big Wheel Partners
In addition to Alcatel, the Andean satellite system comprises the main
telecommunication enterprises of the five Andean countries. These include
CANTV [National Telephone Company of Venezuela], Telcel, Pedevesa
[Venezuelan Petroleum Inc.], and the Cisneros Group. For Colombia, there
is Telecom, Medellin Municipal Enterprises, Cali Municipal Enterprises,
Bogota Telephone Enterprises, IBM, Audiovisual Subscribers, and
Cortipacifico; for Ecuador, State-Owned Telecommunications Company,
EMETEL, and Ram-Telecom; and for Peru, there are partners like Radiomar,
Peru Telephones, Rensil, and Vector.
INTERFAX COMMUNICATIONS & ELECTRONICS REPORT March 31-April 6, 1999
RUSSIA'S SATELLITE COMMUNICATION CAPACITY CONTINUES TO FALL
Most Satellite Capacity Used For Television The industry is in bad shape.
Of the 72 channels available, 20 are in poor condition or can not be used
at full capacity. The Gorizont (Horizon) satellite, which has already
worked three times its planned life- span, recently went off line, and it
is unlikely that it will be possible to bring it back into operation,
chief engineer of Space Communications Yuri Fomin said. Space
Communications managed to transfer Gorizont traffic to other satellites so
users did not suffer. Most transponder capacity (50 channels) is used to
transmit television programming. The remainder are used for phone and data
traffic.
Demand for New Services Will Strain Satellite Capacity Specialists
estimate that there will be demand for 116 satellite channels by 2001, by
which time three Express-A satellites should be launched, along with
Yamal-100 and LMI-1 satellites. Demand for satellite channels in Russia
will reach 290 channels by 2005, including 70 channels for the Internet
and 55 for other VSAT-technologies. However, with the digitalizing of
television transmission, this demand may be reduced to 226 channels.
Forecasted Demand for Satellite Capacity in Russia from VSAT- Technologies
Year Required Number of Channels
1999 3-4
2001 10-12
2003 33-35
2005 120-125
- forecast of Radio research institute
Digital Television Takes Less Space One of the reasons the State
Communications Committee is pushing so hard to upgrade analog television
infrastructure to digital is that digital signals are more compact. More
digital signals can be squeezed through a satellite channel. If analog
remains the standard, then by 2005 some 86 channels will be needed to
support television transmissions, whereas if digital systems are adopted
only 22-25 channels will be needed. One satellite channel can handle up to
six digital programs. An upgrade to digital technology should free
capacity on the Ekran- M and Gorizont satellites. The Committee is working
closely with the ORT television network, the VGTRK state media holding,
and the Federal Television and Radio Broadcasting Service to introduce a
MPEG-2/DVB digital standard. Space Communications already transmits 16
television feeds using the digital standard. It has begun an experiment to
transmit a digital channel (for the STS network) and an analog channel
(Krasnoyarsk Regional Television) over the same satellite transponder.
Contracts to Build 7 New Russian Satellites On Hold Space Communications
intends to launch three new Express-A satellites in the near future. The
first Express-A satellite will be launched in August 1999. The equipment
is being prepared by the French Alcatel Espace and will be ready in April.
The second satellite will be launched in December 1999 or January 2000,
with the third being launched in the middle of 2000. Space Communications
has resolved financial problems connected with the satellite launches. One
investor in the project is a Swiss bank, the name of which has yet to be
released. The initial cost of the contract with Alcatel has been reduced,
and Alcatel will receive profits from satellite use. Contracts for
construction and launch of another seven satellites are currently being
held up, however, due to lack of financing. In a tender held in March of
last year, two groups with the tentative names "Troika" (the Applied
Mechanics laboratory of Zheleznogorsk, eastern Siberia, and Alcatel Espace
of France) and "Yamal" (Energia aerospace and OAO Gazkom) won the right to
launch respectively three and four satellites in the years 2000-2003. Both
groups signed contracts with Space Communications, the operator, in April
1998, but the contracts have yet to enter force because financial
agreements have yet to be signed. Under the agreement, the manufacturers
of the satellites would receive 60% of the resulting capacity, with 40%
going to Space Communications for federal needs. The main stumbling block
is guarantees to the project's foreign investors. In the case of the
"troika" project, a financing package for launch of three Express-K
satellites with 52 transponders each has already been put together. The
main investor is International Satellite Corporation (ISC), which is
prepared to put down $600 million. The company is concerned over
political risks of doing business in Russia. Also, Russia's claim on the
geostationary orbit slots for the satellites, established in 1991, could
expire in one year, with the result that there will be no place to put the
satellites. The "Yamal" project, which foresees launching two Yamal-200
satellites with 44 transponders each, and two Yamal-300 satellites with 48
transponders each, is also experiencing financial difficulties. Also, the
Yamal-300 is a large satellite weighing 2.9 tonnes. It will need a special
heavy booster, but the Energia aerospace corporation has suspended design
of such a booster -- again due to lack of funds. The "troika" project is
expected to cost $800 million, and the "Yamal" project about $1 billion.
First Satellite Phone Networks Take Root in Russia Meanwhile, three global
satellite phone systems are being deployed in Russia as elsewhere. These
are Iridium, which is already in operation, Globalstar, due to come on
line by the end of the year, and ICO sometime next year.
Global Satellite Phone Systems in Russia
Parameters Iridium Globalstar ICO
Main satellites 66 48 10
Russian 300 by 2002 * 150-200 by 2004 350-520
Date to enter in use late 1999 fall 2000 service
Cost ($ bln) 5 3.2 over 2
Operator in Russia OAO Iridium-Eurasia ZAO GlobalTel ZAO ICO-R
- total subscribers in Russia, Kazakhstan, Georgia, Lithuania,
Uzbekistan, Estonia, Latvia, Belarus and Moldova |
