Shaw to use satellite delivery to become Canada’s largest broadband player

Star Choice Communications Inc now has enough contracts and approvals in place to satisfy its fixed satellite service (FSS) needs for the next seven to 10 years, says president Peter Classon. Last Tuesday’s successful launch of Telesat Canada’s Anik F1, combined with signed contracts for F2 and government approval to launch a Ka-band satellite, also give Star Choice and its parent company the added resources they need to become the largest broadband player in Canada. Telesat wins one of remaining DBS slotsBell ExpressVu will be the main beneficiary of a government decision to award a DBS orbital slot to Telesat Canada. Approved by Industry Canada Nov. 10, the new satellite will be able to carry television and two-way multimedia services to the Canadian and North American markets. It will also provide system redundancy and back-up capacity to the Nimiq satellite. "It’s absolutely critical to have a back up and an expansion plan for ExpressVu, so it can be on an equal playing field, not only to the Canadian alternatives, but also to the U.S. alternatives that are out there," says Paul Bush, Telesat’s VP product management. The new DBS will go into the 82 degrees west orbital slot which is adjacent to Nimiq’s position of 91 degrees west. It will include a Ka-band payload which will deliver two-way broadband to the business and home markets. Telesat’s proposal to develop one of the five remaining DBS satellite orbital positions received broad support from broadcasters clamouring for more capacity. Jan Skora, director general radiocommunication and broadcast regulations at Industry Canada, says "we looked at the criticality of having a back up for the Nimiq satellite, which carries the ExpressVu service, weighed it all and said yes we believe it’s in the public interest to license this satellite to them."Star Choice is a division of Canadian Satellite Communications Inc, which became part of the growing Shaw Communications Inc empire in August. With 1.8 million cable TV customers, Shaw is Canada’s second largest cableco. When combined with Star Choice’s 500,000 satellite TV customers, Shaw surpasses Rogers Communications Inc as the largest broadband company in Canada. Industry Canada’s Nov. 10 approval to award Star Choice an orbital slot for a Ka-band satellite will enable the company to expand its two-way broadband reach into all regions of Canada. "We feel really good that (this decision) fulfils Star Choice’s business plan with respect to being able to deliver that high speed two-way Internet service," says Classen. Cancom not to participate in orbital comparative review The department released a separate decision that same day saying it would use a comparative review process to decide who should receive the FSS orbital position at 118.7 degrees west (RoW, Nov. 13/00). Classon says his company will not be applying. "We think with the agreements we currently have in place with Telesat for F1 and F2, and now with this Ka satellite solution, that our business plan for the next seven to ten years is quite complete," he told Report on Wireless. Cancom’s satellite holdings are extensive. It has long-term leases for seven full and one partial Ku-band transponder on Anik E2, 29 Ku-band and five C-band transponders on Anik F1, one partial Ku-band transponder on Loral Skynet’s Telstar 5, and two C-band transponders on GE Americom’s GE 3. Cancom also has arrangements to buy 16 more Ku transponders on Anik F2 – scheduled to launch in 2002 – and a right-of-first refusal on up to 10 Ku-band transponders on Anik F3, which could launch in 2003. The geographic footprint for Anik F1 covers all of Canada, the continental U.S. and part of central America. According to Shaw’s recently released annual report, Cancom has seen its satellite revenue increase from $255 million in fiscal 1999 to $397 in 2000. Revenues from its broadcast, learning, tracking, data and voice operations grew from $109 million to $141 million during that period, while DTH revenue jumped from $146 million to $256 million.

Shaw to use satellite delivery to become Canada’s largest broadband player

News | November 27, 2000

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