22 April 2001

Satcoms

ACeS Reaches Insurance Settlement on Garuda-1
Bermuda based ACeS International Limited (ACeS) has reached a settlement with underwriters of the launch insurance for the Garuda-1 satellite.

Under the terms of the settlement, the underwriters have approved a claim of US$ 101.5 million covering an anomaly that has affected one of the satellite's two L band antennae. The impact is confined to an inability of the Garuda-1 satellite's antenna to use effectively all of the power available. Garuda-1 continues to perform in accordance with design specifications but will be required to operate below its original design capacity. However, the impairment is not expected to impact ACeS's business plan in its early years. Payment on the claim is expected to begin shortly and will be completed by mid-May.

ACeS is to use approximately 70% of the insurance proceeds for deferred premiums and in-orbit insurance for Garuda-1, which will have the effect of significantly reducing ACeS's debt. The balance of funds may be used to support the rollout of the ACeS system, or to make additional reductions in debt.

CBC Selects Tandberg for SNG Upgrade
The Canadian Broadcasting Corporation/Société Radio-Canada (CBC/Radio-Canada) has selected Tandberg Television for the provision of digital satellite news gathering (DSNG) systems for the analogue-to-digital upgrade of its SNG facilities.

The solution, purchased through Tandberg Television's business partner Acura, consists of 39 E5500 mobile contribution encoders and 33 Alteia plus receivers. Deliveries to CBC/Radio-Canada's Montreal transmission facility began in February 2001, with the first units scheduled to be in service throughout Canada beginning in late March.

The Tandberg Television solution, will allow CBC/Radio-Canada to collect more SNG signals from remote and mobile locations using less bandwidth than is currently possible with its analogue system.

CBC/Radio-Canada recently completed the digital transition of its English Television Network satellite distribution system employing Tandberg Television evolution 5000 compression uplink equipment and 8PSK Alteia plus receivers.

The E5500 encoder is a low-cost, high-quality digital satellite news gathering encoder for use in a multitude of outside broadcast applications. It is specifically designed for use by broadcasters, DSNG service providers, and other satellite uplinkers who need a user-friendly MPEG-2 compression encoder for remote satellite broadcasts. Its flexible design also allows broadcasters to begin using the unit in MPEG-2 4:2:0MP@ML, and software upgrade at a later date to 4:2:2P@ML without buying a completely new unit. Additionally, it allows a broadcaster like CBC/Radio-Canada to use the units with either internal QPSK modulator cards or external 8PSK modulators depending on the circumstances.

China Netcom Selects Norsat DVB Data Hub
Norsat International Inc has signed an agreement with China Netcom Corporation Limited (CNC), China's leading broadband infrastructure provider, to supply a large, fully redundant SpectraWorks DVB (Digital Video Broadcasting) Data Hub for CNC's Internet gateway in Beijing.

Norsat will also supply a number of Ku band satellite terminals for CNC's initial satellite broadband rollout. Delivery and installation are scheduled for completion by the end of April 2001.

ETSI Completes First Specifications for Geostationary Satellite-Based Personal Communications Systems
The European Telecommunications Standards Institute (ETSI) has published the first release of a complete set of specifications for a mobile satellite radio interface, known as "GEO-Mobile Radio interface specifications (GMR)".

This first ever release of ETSI specifications for personal communications systems based on geostationary satellites was jointly developed with the US Telecommunications Industry Association (TIA) and is largely evolved from the popular Global System for Mobile Communications (GSM) standard (which was also developed by ETSI). Publication of parallel GMR specifications by TIA is expected to follow later this year.

The GMR specifications include many new features, such as direct terminal-to-terminal calls that adapt and enhance the GSM radio interface technology to make it operate efficiently over geostationary satellites. This first release of specifications includes a full set of circuit mode services for voice and fax, as well as a range of data services. All these services are compatible with the services provided by current terrestrial GSM systems.

There are two variants of the GMR standards in this first release: GMR-1, led by HNS Hughes and adopted by the Thuraya system; and GMR-2, led by Lockheed Martin Global Telecommunications (LMGT), and developed for the ASIA Cellular Satellite (ACeS) system. The Thuraya system provides services in 99 countries spanning Europe, North & Central Africa, Middle East, Central Asia and the Indian Subcontinent. The ACeS system provides services over an area covering India, China, Indonesia, as well as most of South East Asia.

New Canadian Research Program for Satellite Communications Technologies
A new Space Communications research program has been launched by the Canadian Space Agency (CSA) and the Canadian Institute for Telecommunications Research (CITR) with the announcement of grants to Canadian university researchers totalling Cdn$ 1 million.

The first group of university projects to be sponsored through the CSA-CITR Research Program has been selected following a request for proposals and review process administered by the Canadian Institute for Telecommunications Research.

These successful projects, funded for a total of Cdn$ 1 million, of which the Canadian Space Agency has contributed Cdn$ 790,000, include industrial leveraged funds, and involve thirteen researchers from seven Canadian universities and the federal Communications Research Centre. Universities involved include Carleton University, Concordia University, McGill University, Queen's University, University of Alberta, University of Toronto and University of Waterloo.

The program's areas of interest are optical and radio-frequency (RF) technologies, antenna technologies, digital signal processing (DSP) technologies and high speed data communications and storage technologies. Applications are focused on payload technologies for multimedia products and services, mobile and personal communications services and inter-satellite links.

PSN Announces Link Transmission Lease With Telkomsel
PT Pasifik Satelit Nusantara and PT. Telekomunikasi Selular have signed a Link Transmission Lease Agreement.

Under the terms of the agreement, Telkomsel has leased nine link transmission networks in 11 major cities across Indonesia for a two-year period at a fixed monthly rate. The aggregate value of the contract is approximately US$ 4.3 million. The total link transmission usage of PSN transponder capacity will be equal to 1.25 transponders with leased capacity being used from the Palapa C1 and Aguila II satellites. PSN controls 6 extended C band transponders on the Palapa C1 satellite and 2 standard C band transponders on the Aguila II satellite.

Manned Space

NASA and Italian Space Agency to Co-operate on ISS Habitation Module
NASA and the Italian Space Agency (ASI) have announced their agreement on the framework of a potential bilateral co-operative agreement, that could result in ASI development of a US Habitation Module for the International Space Station.

This agreement allows the US to explore an alternative approach to achieve full crew Habitation for the ISS within the constructs of the President's FY2002 budget blueprint guidance and budget run out.

The Habitation Module which was to house crew quarters and other essential habitability functions for three to four additional ISS crew was considered a high cost-risk element, and as such, its funding was redirected to address cost challenges in maintaining the core US assembly elements and high priority ISS objectives. This co-operative proposal will be part of NASA's ongoing program assessment, which includes possible decisions to develop and deploy US elements or enhancements beyond completion of the US core, within available funding. Successful restoration of a habitation capability for six or more crew would significantly increase the availability of crew time to conduct important research.

NASA and ASI are discussing launch services, additional Space Shuttle and ISS astronaut crew opportunities and assignments, ISS utilisation, and increased visibility for the Italian role in the ISS partnership as possible consideration for Italy. Any increase in US research utilisation to be provided to ASI would be enabled through the increased capabilities realised through the provision of habitation for an expanded crew complement.

A Memorandum of Understanding (MOU) between NASA and ASI will be required to formally document NASA and ASI's respective responsibilities in a legally binding document. The Framework signed this week would form the basis for a potential MOU which NASA and ASI would sign after completion of the program assessment and subsequent negotiations.

Tito Ready to Fly
After months of uncertainty Russia has confirmed that California millionaire Dennis Tito will fly to the International Space Station on a Soyuz spacecraft. NASA has also, grudgingly, given in and accepted the situation.

Last week Tito successfully passed his final pre-flight exam and gained flight status, enabling him to join the two Russians who will fly the Soyuz craft to the ISS where it will replace a Soyuz that is docked to the ISS for use as a lifeboat escape craft in case of emergency. Tito and his fellow crewmates will man the old Soyuz as it returns to Earth after its six month mission docked to the ISS.

On Friday, Rosaviacosmos issued a statement that Tito's inclusion in the crew was now officially sanctioned. Tito will join two Russian cosmonauts when they lift off from Baikonur on April 28. Their Soyuz TM-32 spacecraft will dock with the ISS on April 30, shortly after the Shuttle Endeavour leaves and will return to Earth on May 5 in the Soyuz TM-31 spacecraft.

Throughout the whole Tito saga NASA, that great bastion of American science and technology, has given every appearance of acting as a sulky child, inventing reasons and special conditions to prevent Tito from flying. Unfortunately for NASA its Russian partners hold all the cards.

NASA last week refused to carry a 35 g package containing a small sample of "Final Frontier Jerky" and a printed email letter to the space station on this weeks shuttle flight for Dennis Tito when he arrives. Beefjerky.com, the manufacturer of the product, was quite happy to pay for the privilege but NASA did not want to know. "Final Frontier Jerky" is approved for flight and has already flown on a 1997 shuttle mission to Mir as well as being carried in the Shuttle/ISS food manager's refrigerator as taste samples for astronauts. The problem does not appear to be with the product - just in its association with Tito.

NASA is disappointed, and must also be deeply concerned, that its flagship International Space Station project, into which it is pouring billions of dollars of taxpayers money each year, is attracting so little interest among those very same taxpayers. What a great pity that NASA seems incapable of realising the enormous publicity generating potential of the Tito flight. What a great opportunity lost.

Technology

NASA Prepares for First Hypersonic Scramjet Test Flights
NASA is preparing for a series of test flights of its X-43A "Hyper-X" hypersonic scramjet test vehicle.

The Hyper-X program, is a five-year, US$ 200 million effort to demonstrate future hypersonic propulsion and airframe technologies. The Hyper-X research vehicles were developed by Micro Craft Inc of Tullahoma, Tennessee and the program is administered jointly by NASA's Dryden and Langley Research Centers.

Orbital Sciences' Launch Systems Group (LSG) is providing three modified Pegasus launch vehicles which will be used to launch the test vehicle to hypersonic velocity for its sub orbital test flights. Each modified Pegasus rocket will accelerate the small, unmanned Hyper-X research vehicle to a predetermined altitude and Mach number, where it will separate itself to conduct its mission.

NASA is using the Hyper-X vehicles to test propulsion technologies that could be applied to future reusable space launchers and hypersonic aircraft. While vehicles with conventional rocket engines carry oxygen on board, the air-breathing Hyper-X vehicles ingest and compress oxygen from the atmosphere using the vehicle airframe. This type of propulsion system could potentially increase payload capacity on future vehicles since no onboard supply of oxidiser would be required.

The X-43A's scramjet burns hydrogen fuel using air scooped from the atmosphere rather than carrying oxidiser onboard. The vehicle has a wingspan of 1.5 m and is 3.7 m long. It weighs some 1270 kg.

The Hyper-X missions will originate from Edwards AFB and will fly off the coast of California in the Naval Air Warfare Center Weapons Division Sea Range and impact into the Pacific Ocean. The Hyper-X launch vehicle and scramjet research vehicle "stack" will be air-launched from NASA's B-52B carrier aircraft, the same one used on the original Pegasus missions in the early 1990's, as well as on the X-15 and numerous other experimental aircraft programs in the past. The booster will accelerate the stack to a predetermined altitude and Mach number, after which the X-43A will separate from the booster and fly under its own power. Three X-43A flights are planned; the first two will fly at Mach 7 and the third at Mach 10. Each experimental aircraft will fly once.

Launches

GSAT-1

Launched: 18 April 2001
Site: Sriharikota, Andhra Pradesh, India
Launcher: GSLV (Geostationary Satellite Launch Vehicle)
Orbit: GEO
International Number: 2001-015A
Name: GSAT-1

This was the first of two test flights of India's new GSLV launcher. The three-stage GSLV is able to put payloads of 2,000 to 2,500 kg into geostationary transfer orbit.

The experimental satellite GSAT-1, is equipped with an S band and three C band transponders and will be used for conducting communication experiments like digital audio broadcast, internet services, compressed digital TV transmission. Several new spacecraft elements like improved reaction control thrusters, fast recovery star sensors and heat pipe radiator panels are also being tested on this satellite.

STS-100

Launched: 19 April 2001
Site: Kennedy Space Center, Florida
Launcher: Shuttle Endeavour (STS-100)
Orbit: LEO, apogee: 278 km, perigee: 278 km: inclination: 51.6°
International Number: 2001-016A
Name: ISS 6A (Raffaello Multi Purpose Logistics Module, robot arm) on the Shuttle Endeavour (STS-100)

This shuttle mission carries the Italian Space Agency's Raffaello Multi Purpose Logistics Module and the Canadian Canadarm2 robot arm to the International Space Station.

The Canadarm2, also known as the Space Station Remote Manipulator System (SSRMS) will be installed during two spacewalks. The Raffaello Multi-Purpose Logistics Module (MPLM) will fly on its first mission and be brought back to Earth for use on future missions. This pressurised module functions as both a cargo carrier and a Space Station module.

Raffaello will ferry two research racks containing three commercial experiments to the station. These two racks are to be the second and third research racks to be installed in the US Laboratory Destiny. The Advanced Astroculture experiment will be the first experiment to grow plants long enough to determine if they can produce seeds that could then propagate more plants. Another biotechnology experiment, the Commercial Generic Bioprocessing Apparatus, could lead to new drugs and treatments for diseases, as well as development of human tissues for use in skin grafts and organ transplants. Improved pharmaceuticals also could result from the Commercial Protein Crystal Grown-High Density experiment.

The mission will have a duration of nearly 11 days. Shuttle crew are as follows:

Rominger, Ashby, Hadfield, Parazynski, Phillips, Guidoni, Lonchakov

Kent Rominger, commander
Jeff Ashby, pilot
John Phillips, mission specialist
Scott Parazynski, mission specialist
Chris Hadfield, mission specialist
Umberto Guidoni, mission specialist
Yuri Lonchakov, mission specialist

Business

Globecomm Systems Hopes to Combine NetSat Express and Globecomm Operations
Satellite Internet service provider NetSat Express is in the middle of a major shake up in an attempt to cut costs. To introduce further efficiencies, Globecomm would like to fully absorb its majority owned subsidiary.

As part of a management reshuffle NetSat's Board of Directors has named Kenneth A Miller, Chief Executive Officer of NetSat. Mr Miller replaces Marni S Ehrlich, who tendered his resignation as Chief Executive Officer of NetSat to the NetSat Board of Directors. The NetSat Board of Directors also accepted the resignation of Mr Burt H Liebowitz as President and Chief Operating Officer of NetSat. Ehrlich and Liebowitz have also resigned from the Board of Directors of NetSat.

At the same time, NetSat eliminated approximately 44% of its work force as part of its cost reduction program.

Globecomm has also completed transactions with George Soros and Globix Corporation to buy back their combined 25.2% of NetSat's outstanding securities. Globecomm repurchased these combined holdings in exchange for 433,304 shares of Globecomm common stock, warrants to purchase an additional 487,501 shares of Globecomm common stock and cash in the amount of US$ 1,083,335. Globecomm is in discussion with several other equity investors in NetSat with combined interests totaling 16.5%. If Globecomm successfully reaches an agreement with all of these holders, Globecomm will own 100% of NetSat.

David Hershberg, Chairman and CEO of Globecomm, said, "Based on current market conditions, we determined the best strategic option was to increase our majority ownership of NetSat. This would allow us to combine the operations of NetSat and Globecomm, thereby facilitating our transformation from infrastructure provider to end-to-end satellite-based communication solutions provider. We anticipate that these actions will enable us to strengthen both of our marketing efforts, reduce NetSat's operating costs and continue to provide customers with a high level of services."

Lockheed Martin Establishes New Navigation Systems Business Unit
Lockheed Martin has established a new business unit within its Space Systems Company. This new Navigation Systems business unit will focus on new business opportunities in the space-based navigation systems marketplace.

In addition to pursuing opportunities to develop the third generation Global Positioning System (GPSIII) and Global Multi-Mission Service Platform (GMSP), the new business unit will provide a new level of corporate commitment to the development of systems required to meet the rapidly expanding needs in this market and its customers.

Stanton D Sloane, currently the executive vice president of Lockheed Martin's Management and Data Systems, will lead the new business unit. Sloane will be responsible for the overall strategy development, strategic teaming decisions and implementation of our pursuits of space based navigation systems. The new business unit will also have access to corporate-wide resources and support including Lockheed Martin's System Integration and Air Traffic Management organisations.

Headquartered in King of Prussia, Pennsylvania, the Navigation Systems business unit will be responsible for the GPS III architecture study, the GPS-IIR program and the GPS III CAD (Component Advanced Development) development activities. It will also include the broader functional areas of system of systems architecture and engineering, network architecture, and user applications.

Orbital to Sell Interest in MacDonald, Dettwiler and Associates
Orbital Sciences Corporation has signed a definitive agreement to sell 12.35 million shares that it holds in its MacDonald, Dettwiler and Associates Ltd subsidiary to a Canadian investment group for approximately US$ 111 million.

In addition, Orbital also has the option to sell its remaining 5.65 million shares. Estimated proceeds from the sale of all 18 million shares would be at least US$ 163 million. The Canadian investment group includes CAI Capital Partners and Company II LP, British Columbia Investment Management Corporation and the Ontario Teachers' Pension Plan Board. The transaction has been approved by Orbital's Board of Directors and is subject to certain US and Canadian regulatory approvals and customary closing conditions.

Under the terms of the agreement, Orbital expects to complete the 12.35 million share initial transaction by mid-May. The buyers have until May 31, 2001 to exercise their option to purchase the remaining 5.65 million shares of MDA. Orbital plans to use the proceeds from the MDA transaction to reduce debt and boost cash reserves to fund working capital and for other general purposes.

The sale announcement comes as Orbital released its financial results for 2000, reporting consolidated revenues from continuing operations of US$ 725,669,000, down 5% from 1999 comparable revenues of US$ 766,372,000. Orbital's net loss from continuing operations in 2000 was US$ 228,224,000 (or US$ 6.09 per share), compared to a net loss of US$ 105,129,000 (or US$ 2.82 per share) in 1999. The net loss in 2000 included approximately US$ 163,000,000 in non-cash, non-recurring charges, or approximately 71% of the net loss from continuing operations for the year.

The MDA transaction is expected to address Orbital's liquidity needs for 2001.

In addition, Orbital intends to sell its Magellan Corporation business unit and its interest in Navigation Solutions LLC (NavSol) in the next several months, providing additional liquidity for the company. These strategic divestitures follow the October 2000 sale of the company's Fairchild Defense division for about US$ 100 million and the July 2000 initial public stock offering of MDA in Canada.

Products and Services

New Course and Free Planning Software from Andrew
Andrew Corporation has introduced two new services for Earth Station Antenna systems customers: ESA system planning software and ESA installation training.

The Microsoft Windows-based system planning software provides users with Earth Station Antenna system configuration assistance. The software guides users through the system design process and automatically checks for equipment compatibility. The system planner supplies a customised bill of materials of the Andrew components needed for the completed earth station system design. The Andrew Earth Station System Planner can be downloaded free of charge from www.andrew.com.

Andrew Institute, the training arm of Andrew Corporation, has added a new Earth Station Antenna training course to its curriculum. The 2-day course is aimed primarily at antenna installers and technical and administrative personnel needing to become more familiar with Andrew ESA products. The syllabus covers ESA site planning and preparation, component assembly and installation, antenna options and accessories, ESA inter-facility links, satellite acquisition, and antenna testing.

Andrew will host the ESA training course at the Andrew Institute, Richardson, Texas facility. Courses will begin in late summer 2001.

Scientific-Atlanta Introduces PowerVu Master Commercial Receiver
Commercial content providers will soon be able to deliver IP data to their affiliates through the PowerVu(R) D9230 Master Commercial Receiver (MCR) from Scientific-Atlanta. The new product also delivers the MPEG-2 transport stream for connection of compressed digital signals directly to digital cable plants.

Scheduled for release this summer, the D9230 MCR is the latest addition to Scientific-Atlanta's PowerVu family of digital satellite receivers. Two key features that will be available with the D9230 MCR are:

• Ethernet communications for IP data, as well as remote receiver diagnostics and monitoring. Data received by the D9230 is forwarded via the Ethernet connection to the appropriate computer in the headend.
• MPEG-2 transport stream output in DVB-ASI format for connection to the headend grooming multiplexer to provide the program for the digital tier.

These capabilities are designed to meet the needs of content providers who are developing more advanced program services as the cable industry moves rapidly from broadcast to digital interactive TV services. IP data can be used to enhance the viewing experience and provide interactive links to targeted web content, which can be viewed using advanced interactive set top boxes such as Scientific-Atlanta's Explorer family of products.

People

Pace Appoints VP of Technology for Americas Market
Pace Micro Technology Americas has announced the promotion of Graham Williams to vice president of technology.

Williams was most recently vice president of engineering with Pace Americas, and is now in the newly created position of vice president of technology for all Pace Americas divisions, including cable, DSL, digital terrestrial, wireless, and satellite. Based in Boca Raton, Florida., Pace's US office houses its sales, marketing, service and engineering divisions for the American markets.

Williams' new title reflects the expansion of his role within Pace Americas. He is now responsible for strategic development of all advanced products and technical solutions for customers in the North and South American markets, and oversees the co-ordination of these solutions throughout the divisions within Pace.

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