21 January 2001

Satcoms

BroadLogic and iBeam Team
BroadLogic Network Technologies, the leading provider of satellite broadband networking equipment, today announced an agreement with iBeam Broadcasting Corporation, the leading global streaming media network (SMN), in which iBeam will use BroadLogic's Satellite Express XR1 Fast Ethernet receiver/router as the standard satellite receiver platform for current and new deployments within the iBeam network.

BroadLogic's Satellite Express XR1 receiver/routers will be installed at points-of-presence to enable local delivery of content via satellite, avoiding the congested Internet backbone. The Satellite Express XR1 reduces cost and improves customer satisfaction by increasing speed and dependability.

BroadLogic's Satellite Express XR1 was chosen for its compatibility with existing customer systems, flexibility in server and gateway-type applications, and its ability to deliver 68 Mb/s.

Datron Receives Broadband Airline Antenna Contract
Datron Systems Inc has been awarded an additional US$ 3 million contract from Rockwell Collins to complete development of satellite antenna systems designed to deliver real-time, broadband video and data to passengers in-flight on commercial aircraft. The contract calls for delivery of nine Ku band antenna systems beginning in the spring of 2000.

Initial development work for these antennas began under a partially funded contract last year. This US$ 3 million addition now provides full funding for development of flight test units and establishes terms and conditions under which Rockwell Collins may place future production orders.

The antennas to be provided under this contract will support development of Rockwell Collins' Information Communication Systems to provide airline passengers and crews with a variety of entertainment and information satellite services, including capabilities for video and Internet data access.

Datron's total potential market for broadband satellite communication antennas for existing airliners is estimated to be in excess of US$ 500 million. In addition, the potential market arising from new jetliners to be put into service is estimated to be US$ 50 to US$ 100 million annually.

HNS to Supply Major VSAT Network to Telkom SA
Hughes Network Systems (HNS) is to provide Telkom South Africa Limited, South Africa's leading communications operator, with an extensive range of VSAT satellite equipment and services to serve the country's metropolitan and rural areas.

HNS is the leading supplier of VSAT network equipment in Africa with more than fifteen African operators utilising HNS hubs and HNS equipment deployed in all but three of the African countries.

HNS' VSAT products facilitate the delivery of interactive data, voice, facsimile, and multimedia services, and are projected to support 90% of Telkom South Africa's VSAT requirements. It is estimated that HNS will supply up to 14,000 terminals under this contract.

With this four-year agreement, HNS will support Telkom SA in the delivery of its SpaceStream VSAT service. The contract also includes sales and marketing support from HNS, and maintenance for ten previously installed HNS satellite hub earth stations.

The SpaceStream VSAT service provides networks to market segments such as financial services, retail, and manufacturing, and government services such as air traffic control, police, and election monitoring. These networks run a variety of applications from email, Point-of-Sale, ATM, voice, and telex to newer multimedia, business television, and e- learning applications.

Telkom SA has already signed a major financial institution as its first customer for a deployment of over 700 remote terminals.

India OKs Ku Band Reception
The Indian Government has cancelled a prohibition order which made it illegal to establish, maintain, possess or deal in of equipment capable of receiving Ku band TV broadcast signals directly from satellites.

An amendment to the Radio, Television and Video Cassette Recorder Sets (Exemption from Licensing Requirements) Rules, 1997 has removed the ban on equipment for use at frequencies above 4,800 MHz.

The amendment comes in effect immediately.

Satmex Orders Satmex 6 Satellite
Mexican satellite operator Satmex has signed a contract with Space Systems Loral under which SS/L will build Satmex 6, the replacement satellite for Solidaridad 1.

Satmex 6 is to be built within 24 months and will be put into orbit in 2003.

The new satellite is to have four times the capacity of Sol 1, with 60 transponders and complete coverage of the American continent.

Scopus Provides Multichoice with Digital DTH System
Scopus, a leading supplier of digital compression technology to the broadcasting industry, has been chosen by Multichoice from South Africa to supply a digital DTH (Direct-to-Home) system.

With the Scopus platform, Multichoice is transmitting 54 digitally compressed TV channels from the head-end in Spain to viewers in South Africa.

Scopus provided Multichoice a "one-stop-shop" solution. Within the project, Scopus was in-charge of the entire head-end architecture, engineering, integration and the supply of digital video compression equipment. Multichoice's head-end is equipped with two types of systems: Digital Turnaround and an MCPC (Multi Channel Per Carrier) systems. The transmission from Spain to South Africa is via Eutelsat W4 and Multichoice operates seven of its transponders.

For the MCPC systems, Scopus supplied Multichoice with a complete end-to-end solution that includes four fully redundant statistically multiplexed encoding systems together with a network management system. For the access control, Scopus integrated Irdeto's "SAS" Access product line.

The corner stones of Scopus' MCPC systems are the Codico E-1000 Professional Encoder and the Codico RTM-3600 Statistical Multiplexer / Re-multiplexer. The E-1000 is a Professional Encoder that supports both MPEG-2 4:2:0P@ML as well as 4:2:2P@ML encoding levels. The E-1000, housed in a single unit rackmounted enclosure, uses an advanced video pre-processor, provides efficient bit rate and buffering control, delivering flexible encoding capabilities and high quality pictures at any given bit rate. The Encoder operates either at constant bit-rate (CBR) or at variable bit-rate mode (VBR), to support Scopus' statistical multiplexing process.

The RTM-3600 is an MPEG-2 DVB compliant Statistical Multiplexer/Re-multiplexer that provides MPEG-2 DVB stream multiplexing and efficient re-multiplexing. It is capable of multiplexing up to 15 MPEG-2 transport streams, re-multiplexing video programs and has a statistical multiplexing mode.

Earth Observation

First Images From Eros A1
ImageSat International (ISI) has announced the initial availability of sample imagery from its EROS A1 real time high-resolution imaging satellite, successfully launched on December 5, 2000.

EROS A1 has completed the first phase of In Orbit Testing with all systems and sub-systems equalling or exceeding performance specifications.

During the balance of January and February the Company will continue the integration and testing of its worldwide ground systems, including interactive testing between the space and ground segments. Full commercial operation is anticipated to commence in March.

ImageSat's EROS A1, built by Israel Aircraft Industry's MBT Division, is the world's first lightweight (250 kg) commercial satellite capable of real time high-resolution earth observation. The satellite is highly agile and offers the maximum flexibility in site-specific image acquisition. This capability, combined with ISI's global networked ground infrastructure, emphasises timely customer access to commercial high-resolution imagery for the first time. EROS A1 supports image acquisition in either 1.8 meter "Standard" or 1 meter over-sampled "OS" mode.

First Images from Hyperspectral Imager on NASA's EO-1
One and a half months after its launch aboard NASA's Earth Observing-1 (EO-1) spacecraft, the TRWbuilt Hyperion hyperspectral imager is transmitting images of the Earth's surface to ground stations around the world. Hyperion is NASA's first hyperspectral imager to become operational on-orbit.

The initial images taken of northern Virginia show terrain features, buildings, roads, vegetation and water. The images are being processed by TRW at its Space Park facilities in California and then returned to NASA Goddard Space Flight Center for redistribution to the EO-1 Science Team for application demonstrations.

Hyperion sees the Earth in 220 spectral bands from the visible to shortwave infrared with 30 m spatial resolution. One of three science instruments on EO-1, Hyperion captures images in a swath 7.5 km by 180 km with high radiometric accuracy. Images hundreds of km long will be collected routinely by Hyperion.

Data from Hyperion is providing more detail of the Earth's surface than is currently available from multispectral instruments, such as the Enhanced Thematic Mapper Plus instrument on Landsat 7. The detailed classification of complex land ecosystems with hyperspectral imagery is expected to increase the accuracy of remote sensing data in applications including mining, geology, forestry, agriculture and environmental management.

Using hyperspectral data, minerals on the Earth's surface can be identified and new mineral maps can be created to select sites for exploration; forest inventories can be developed for remote regions to support ecological planning and management. Through the use of new space-based capabilities, a host of issues can be addressed on a worldwide scale.

Hyperion is TRW's newest hyperspectral imager. TRW has been designing and developing airborne and spaceborne hyperspectral instruments since 1989, and its airborne instruments have completed hundreds of hours of flight, taking images of metropolitan, agricultural and environmentally sensitive areas. TRW provides a full spectrum of services from planning and data acquisition to application analysis.

Space Imaging Awarded Half Metre Licence
Space Imaging has been awarded a license by the National Oceanic and Atmospheric Administration (NOAA) to operate a commercial remote sensing spacecraft capable of providing half-metre resolution imagery of the Earth.

Space Imaging's next-generation satellite imaging system will provide half-metre resolution black-and-white (panchromatic) and two-meter resolution colour (multispectral) imagery. Half-meter resolution means objects on the ground larger than one-half meter in size can be seen. One would be able to see such objects as a line of utility poles, a picnic table, large farm animals, small pipelines, individual trees and bushes, and agriculture fields for precision farming. This higher resolution imagery is ideal for precisely mapping utility and telecommunications networks, planning roads and highways, facilities management, national security and other applications requiring a high level of visual and positional detail and accuracy. It is not accurate enough to recognise or identify people.

Space Imaging is in the process of defining technical specifications for the new satellite. Launch is anticipated in 2004.

In 1992 the US Congress passed the Landsat Act that enables US companies to build and launch commercial imaging satellites in order to compete with foreign companies planning similar ventures. In 1994 the president signed a Presidential Decisions Directive that further defined the government's remote sensing policies. Last autumn NOAA finalised the actual regulations that govern this industry.

In April 1994, Space Imaging was issued a license to offer one-meter resolution satellite imagery. Lockheed Martin Commercial Space Systems (then Lockheed Missiles and Space Company) built and launched the IKONOS satellite under contract to Space Imaging. Since the IKONOS launch in September 1999, Space Imaging has been selling one-meter resolution black-and-white and four-meter resolution colour imagery.

Science

NASA's Explosive Plans for Comet Tempel 1
Scientists plan to fire a copper projectile into the nucleus of comet Tempel 1 as part of a US$ 270 million project funded by NASA.

The Deep Impact project will cause an explosion comparable in power to to a small nuclear detonation will be used to investigate the make up of the comet's primitive core and may reveal clues about evolution of the solar system.

The projectile will be made of copper because it is less likely to interfere with the materials inside the crater formed by the impact.

The probe will be launched in January 2004 from Cape Canaveral. In July 2005 the spacecraft would separate from a battery-powered, copper projectile that would collide with the comet 24 hours later at a velocity of 10 km per second producing a crater up to 30 m deep.

The spacecraft would observe the composition of the crater's interior, while telescopes on Earth would monitor the impact.

The target, Comet Tempel 1 was chosen because its size, rotation and trajectory favour the project and because the collision would be observable from Earth.

NASA has scheduled a preliminary design review on the project for February.

Manned Space

Russia Announces Date for Mir De-Orbit
The Russian Space Agency has announced that the Mir space station will be de-orbited on March 6 when it will burn up over the ocean east of Australia.

A Progress cargo ship will be launched is scheduled to launch on Wednesday will carry fuel for the de-orbiting manoeuvres. The Progress M1-5 supply vessel has been modified to carry more fuel than usual. Its main engines will be used to lower Mir's orbit and to control its descent.

The launch of the Progress supply vehicle was originally scheduled for Thursday last week but has been delayed because a power outage on Mir turned the station's gyros off and Mir temporarily lost navigational capability which would have prevented Progress from docking with Mir.

Three two-man emergency crew of cosmonauts are also ready to manually control the de-orbiting if the Progress vehicle cannot dock for some reason or if Mir is disabled by some unforeseen problem before the de-orbiting can take place. The particular crew chosen for the mission will depend on the failure scenario.

If all goes to plan the space station's gyrodynes will be turned off on 10 February and, on 4 and 5 March, The attached Progress vehicle will fire its engines three times to reduce Mir's orbital velocity and to lower its orbit. On 6 March the engines will be fired for a final time to lower the orbit to such an extent that atmospheric drag will cause re-entry a few days later.

Shenzhou 2 Lands Successfully
The re-entry module of China's Shenzhou 2 unmanned spacecraft landed in Inner Mongolia on Tuesday after a week in orbit.

The Chinese government reports that the mission was completed successfully and that the animals on board were recovered in good health.

The orbital module and attached segment of the spacecraft remain in orbit and continue to perform scientific experiments. There has been no indication of when this mission may be completed or when a follow on manned mission may be launched.

Business

Globalstar Suspends Payments
Globalstar has announced that, in order to have sufficient funds available for the continued progress of its marketing and service activities, it has suspended indefinitely principal and interest payments on all of its funded debt, including its credit facility, vendor financing agreements and Senior Notes, as well as dividend payments on its preferred stock.

This decision, which (Globalstar reports) has been endorsed by Globalstar's partners, is designed to ensure the uninterrupted continuation of Globalstar s satellite-base d communications service and further deployment of these services around the world.

In other words, Globalstar has so little income it will not remain solvent if it continues to repay the money it has borrowed and the interest on its loans. Globalstar's investors have a very stark choice: either accept the situation and hope the company's performance will improve or insist on payment, bankrupting Globalstar and making their investment worthless.

Globalstar shares lost 45% of their value following the announcement.

Globalstar currently has some US$ 195 million in cash which, it hopes, with the suspension of principal and interest payments of US$ 400 million for the year 2001, will allow the company to remain solvent through to the end of 2001.

Without these measures, Globalstar would probably face bankruptcy in four months time.

Globalstar did not make the US$ 45 million interest and principal payments due this week on its Loral credit facility and under its vendor financing agreements with Qualcomm and Loral.

Globalstar's actions will cost Loral Space & Communications, Globalstar's largest investor, about US$ 140 million in cash during 2001. Loral's direct and indirect investment in connection with Globalstar s activities total about US$ 1.3 billion, which includes about 39% of Globalstar s equity and about 27% of its debt. Loral intends to write down its Globalstar investment, including common and preferred equity, and debt, reducing it to a onetime non-cash charge for the fourth quarter.

Qualcomm has approximately US$ 610 million in net assets related to its business with Globalstar, including receivables, inventory, deferred costs, unearned revenues and investment-related assets.

Industry analysts are, however, expecting bondholders to force Globalstar into bankruptcy, to salvage some value from their investments, rather than waiting whilst the company uses up its US$ 195 million in cash reserves.

It has been estimated that Globalstar needs at least 1.5 million subscribers to cover its operational costs, investments and to service its debts. In its current situation, only having to cover its operational costs, Globalstar probably only needs 200,000 to 300,000 subscribers to achieve a neutral cash flow. Globalstar had 31,200 subscribers at the end of the first week in January.

Quake Wireless Becomes Quake Global
Quake Global, formerly known as Quake Wireless, has changed its corporate name to more closely reflect its role as a worldwide supplier of asset and fleet management products, services and information.

The San Diego-based technology firm designs, manufactures, and delivers communication hardware and reporting software. In doing so, Quake Global utilises the latest in global satellite technology, cellular and other developing technologies.

Quake Global has 25 employees in San Diego, plus an extended network of international distribution representatives.

TMI and Motient Plan New Mobile Satellite Venture
Motient Corporation and TMI Communications and Company LP have announced the signing of a definitive agreement, subject to certain conditions, to merge Motient Satellite Ventures with TMI to serve customers all over the North American Continent.

Following regulatory approvals, the partnership will bring about a complete merger of the two companies' mobile satellite operations, along with US$ 50 million of new investment from the financial partners in Motient Satellite Ventures, increasing their aggregate ownership from 20% to 40%.

The newly formed company, called Mobile Satellite Ventures (MSV), will bring together the technology and the resources required to create the next generation of mobile satellite services in North America. The new satellite system will use a highly innovative and spectrum efficient combination of spot beam satellites and fill-in terrestrial base stations.

Services to the two companies existing customers will operate normally and will seamlessly be integrated into the new company's operations. Once regulatory approvals are secured, TMI and Motient will consolidate certain of their operating facilities to maximise the operating efficiencies the merger provides.

TMI Communications & Company LP is a North American developer and supplier of mobile satellite communications services, delivering a full portfolio of wireless digital data, voice, fax and dispatch radio applications from the MSAT-1 satellite.

Motient owns and operates an integrated terrestrial/satellite network and provides a wide range of two-way mobile and Internet communications services principally to business-to-business customers and enterprises. The company provides eLink two-way wireless email service to customers accessing email through corporate servers, Internet Service Provider (ISP) and Mail Service Provider (MSP) accounts, and paging network suppliers.

Products and Services

LinkStar VSAT Terminal Introduced by LMGT
Lockheed Martin Global Telecommunications (LMGT) has introduced its latest broadband satellite networking product, the LinkStar terminal, a scalable, high-performance Internet Protocol (IP) terminal that provides broadband satellite forward and return channels.

LinkStar terminals allow users to pass more data through return links than other satellite networking products due to more efficient coding techniques. The product also offers more effective throughput by using TCP (Transmission Control Protocol) acceleration, bandwidth on demand, and an "always on" connection at the customer premise location.

LinkStar terminals work with VSAT size antennas, typically 96 cm to 1.8 m in diameter. The terminal receives a broadband digital video broadcasting (DVB) outbound channel to 60 Mb/s and provides a broadband satellite return channel with speeds up to 1.150 Mb/s. The hub gateway is a combination of LMGT propriety technology and commercially available DVB compliant equipment.

People

Dan Goldin Staying at NASA Temporarily
Although no official statement has been made, it appears that NASA boss Dan Goldin will remain in post as Administrator for a few months until the new Bush administration appoints a replacement.

Over the past few weeks the Clinton administration's political appointees have been resigning their posts in preparation for the new wave of appointees from the new Bush administration. This has not been the case at NASA and neither the resignation of Administrator Dan Goldin or a statement on his status has been forthcoming.

The rumour mill has been active and the situation is apparently as follows. Goldin is believed to accepted an offer from the Bush administration to remain in post for a short period until a replacement can be appointed. Personnel from the Bush Transition Team will temporarily move to NASA to provide guidance until the new appointment is made. It is not expected that Goldin will be considered for reappointment.

FCC's Kennard Steps Down
William Kennard, Chairman of the Federal Communications Commission, the US telecoms regulator, has resigned with immediate effect.

His successor has not yet been announced by the incoming Bush administration but it is expected to be Michael Powell. Another possible successor is Pat Wood, chairman of the Texas Public Utilities Commission.

Kennard has been FCC Chairman since November 1997.

ICTI Appoints Director of Government Markets
David A Brooks has been appointed Director of Government Markets for Innovative Communications Technologies, Inc, one of ARCOMS' wholly-owned subsidiaries.

In this newly created position, Mr. Brooks will be responsible for identifying and cultivating business development and market opportunities for government markets, reporting directly to Moe Abutaleb, President of ICTI.

ICTI is a leader in the design and implementation of multimedia satellite networks and proprietary technologies for clients within the commercial, government and military markets requiring links with multiple remote locations.

L-3 Communications Names New VP of Procurement
L-3 Communications has named Ralph DeNino to the newly created position of corporate vice president of procurement.

In this position, Mr DeNino will oversee the consolidation of the company's procurement expenditures, with an emphasis on strategic sourcing, cost savings, and e-commerce initiatives.

New President at Enerdyne Technologies
John R Westgarth has been appointed President of Enerdyne Technologies Inc, a wholly-owned subsidiary of ARCOMS.

Mr Westgarth will be responsible for all operations and administration for Enerdyne, and will report to Michael Silverman, ARCOMS' Chairman and CEO.

Enerdyne is a leader in video, voice and data communications technologies for the commercial/industrial, transportation, government and military markets and provides equipment for airborne, space, fixed or ground mobile, and other surveillance applications. Enerdyne offers MPEG2/1, IRIG, and MJPEG technology featuring its own patented ADVS® video compression technology, available with a wide range of multiplexing and interface options.

Space Foundation Names New President
The Space Foundation has named Elliot Pulham President and Chief Executive Officer.

The Space Foundation, headquartered in Colorado Springs, is a US non-profit organisation dedicated to advancing space awareness and space education.

Pulham succeeds Interim President Chuck Zimkas and Interim CEO, The Honorable Jaime Oaxaca. Zimkas and Oaxaca have served in their interim roles since Bill Knudsen left the Space Foundation last summer to pursue opportunities in the private sector. Zimkas will return to his position as Chief Operating Officer, while Oaxaca will remain Chairman of the Foundation's Board of Directors.

Space Imaging Names Robert Z Dalal as VP and CFO
Space Imaging has announced the appointment of Robert Z Dalal to the position of vice president and chief financial officer. Dalal's appointment is effective immediately.

Dalal will be primarily responsible for the overall management and direction of Space Imaging's long-term financial plan including the economic analysis of business operations and the evaluation of the financial impact on related initiatives being considered by the company.

Before joining Space Imaging, Dalal worked for Lockheed Martin Corporation, where he held various senior financial management positions. Most recently he was the vice president and controller of Lockheed Martin Space Systems Company in Denver.

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