Hughes’ plan to use Canadian satellite spectrum comes under harsh criticism

Hughes Network Systems’ proposed plan to use Canadian satellite spectrum as part of a constellation of communications satellites has come under harsh criticism from Canadian industry observers who say the plan is without merit. Sources question Hughes’ willingness to develop the Ka-band in the 107.3 degrees West orbital slot before the deadline of April 25, 2004 when the company already has several slots that it has yet to develop (RoW, Nov. 27/01). Industry watchers are suggesting that Hughes won’t meet that deadline, and that the only reason the U.S.-based company wants the slot is to let the deadline lapse so it doesn’t have to coordinate activities with Canadian authorities. Paul Bush, VP corporate development at Telesat Canada, doesn’t buy Hughes’ plan to develop the spectrum in question by the in-service deadline and even questions the reasons Hughes wants Canadian satellite spectrum. "Why would an American group that has American orbital real estate that has not yet been developed want a Canadian orbital slot?" he questions. "The answer is, with the Canadian orbital slot they can at least let the clock run out and not use it, but at the ITU (International Telecommunication Union) level, they won’t have to coordinate with us anymore," he tells Report on Wireless. Representatives from Hughes were not available for comment at press time, but the company had previously indicated its desire to use the 107.3 orbital position. In a prior interview with Report on Wireless, Joslyn Read, VP regulatory and international affairs, said that particular slot, because of its central location, would fit well with the company’s strategy of being able to provide coast-to-coast coverage (RoW, Nov. 27/01). Coordination key to developing orbital positionsInternational coordination is key to deploying satellites, and Bush says it’s very much at play in this situation. It is important to note that the 107 degrees West orbital position is held by Pegasus Communications, which has also filed an application for the 107.3 slot. Coordination within a couple of degrees can prove to be difficult, Bush explains, and even more so within .3 degrees, as is the case with this situation. "If you keep the 107.3 slot out of circulation, then it makes your coordination (that much easier)," he adds. Satellite coordination begins with the ITU level and then moves to the country level, which makes the process quite complex, says Bush. "It’s a brawl in terms of coordination," he states. "I just see some of this maneuvering for some of these positions as being less of an issue in terms of serving Canada and more of an issue in terms of making sure that the real estate that they already hold is protected." Bush questions Industry Canada’s decision to open up the process to all potential candidates at this time. He suggests that the department could move forward with regulatory filings and measures to ensure that Canada maintains access to the orbital slots. "What befoggles me is why we continue down these paths in terms of large corporations that already have their own orbital slots and enable them to come forward and suggest that they’re going to develop Canadian real estate," he says. "Why would they do that? "They don’t have to. They’ve already got their own and they haven’t put anything in to that and you think they’re going to develop a Canadian orbital slot first, I don’t think so," Bush states. Options still open to departmentThere are a number of options open to Industry Canada to ensure that Canada maintains access to this valuable real estate, but time is running out. The department can go back to the ITU to do a number of refilings, and present modifications to existing filings to maintain our position, Bush explains. "You can always file on top of your existing filing, so it’s about keeping your filings current and these filings are running out." But Bush says the most important thing is to make sure that Canada doesn’t lose its place in line to maintain its orbital slots. With the number of Ka-band licence holders hovering around 20, there will be a substantial amount that won’t survive given current economic and market conditions. "My view is with the current economy and with the (lack of) availability of capital for satellite ventures, you’re going to see very few of these guys moving forward," says Bush. More competition in domestic satellite market not the answerHaving more than one player in the Canadian satellite market wouldn’t solve current problems, says Bush, referring to a the editorial in the previous edition of RoW (RoW, Nov. 27/01). The issue is that as American firms consolidate creating satellite powerhouses, as Hughes and EchoStar Communications Corp. are proposing to do, the Canadian government has to ensure that its satellite resources remain in Canadian hands, and having another competitor isn’t the answer. The answer, according to Bush, is ensuring Canada has a strong company to compete against the large satellite players in the United States and in other parts of the world. "We should be pushing to have a strong Canadian player, not a façade that we’ve got competition in Canada," he says. "But a real competitive player (that can compete) against the Panamsats and the Lorals." As to why Telesat didn’t apply for the 107.3 position itself, Bush tells RoW that the company is focused on delivering what it said it would deliver. That means ensuring that Anik F2 and Nimiq 2, both of which will have Ka-band payloads, are completed, launched and begin providing service on time.

Hughes’ plan to use Canadian satellite spectrum comes under harsh criticism

News | December 11, 2001

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