Challenges Satellite Operators Face Today

1
Challenges Satellite Operators FaceToday

• Roger Tinley
• VP Space Systems
• Telesat Canada

2
Telesat Canada
Telesats Ottawa Headquarters
Satellite Control Center

• Business transponder leasing in N S America,
  end-to-end services and consulting
• Created in 1969 100 owned by BCE since 1998
• 14 satellites launched (Anik A1 in 1972) 3 on
  order
• 2003 revenues 345M
• Facilities in Canada, US, SA, Australia 500
  staff
• Maintain operate 20,000 earth stations

3
Worldwide Consulting Services

• Frequency coordination
• System design, specs, RFPs
• Bid evaluations/negotiations
• Construction monitoring
• Satellite operations
• Satellite control facilities
• Earth station installation
• Flight dynamics software
• Transfer orbit services
• Due diligence/insurance etc.

4
Industry Issues

• Slow recovery from the economic downturn
• Commercial failures of LEO/MEO fleets
• Fewer orders for satellites and launch services
• Temporary over supply of transponders
  terrestrial capacity
• ITAR (International Traffic in Arms Regulations)
• Reduction in the number of suppliers/operators
• In-orbit reliability
• Space insurance market

5
Insurance

• Losses of 9/11 drove up reinsurance rates and
  made some classes of insurance more attractive to
  investors than space
• Costly in-orbit satellite failures have shaken
  the space insurance market
• Major reduction in insurance capacity from 1.5B
  to 300M per launch
• Fluctuating high rates and coverage limitations

6
Insurance Cont.)

• Limited capacity has a negative impact on large,
  cost effective, but expensive satellites
• Insurers pushing back on historical coverage
  terms shorter terms, exclusions/deductibles,
  and higher margins
• Insurers requiring manufacturers and operators to
  take increased liability for design problems

7
ITAR

• Complex regulations strain the working
  relationship between supplier and customer
• Regulations limit
• Visibility during procurement
• Technical exchanges between operators
• Lessons learned on other programs
• Design data needed for operations
• Technical discussions with the Insurers
• Insurance settlements inevitably delayed despite
  best efforts

8
Steps Taken by Telesat

• ITAR and CGP Officers
• Restricted access work areas
• Program isolation
• Extensive data control
• Comprehensive ITAR training

9
ITAR Wish List

• Remove standard commercial payloads from the US
  Munitions List classic designs, common
  equipment, and no US unique technology
• Supplier TAAs giving the maximum permitted access
  to data
• Exemptions for non-US equipment
• ITAR-free US commercial communications satellites
  (using lower technology as necessary)

10
Industry Changes

• Fewer operators due to consolidation
• Potential reduction in the number of
  manufacturers
• Shift of emphasis from commercial to military for
  some satellite and launch services suppliers

11
Positive Signs

• Success of Direct-to-Home services
• Success of digital satellite radio e.g. XM-Radio
• Broadband satellites such as Anik F2
• HDTV
• New programs such as Anik F3

12
Conclusions

• Positive signs that the industry is emerging from
  the economic downturn
• There is a need to ease the ITAR controls on
  standard commercial communications satellites
• Recovery of the space insurance market is
  essential and can only be achieved by improved
  reliability