• Chinese president meets Chinese, Nigerian businessmen

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Document APULSE0020060307e237003bi

BRIEFING - ASIA TELECOMMUNICATIONS - MARCH 7, 2006
943 words

7 March 2006

Asia Pulse

APULSE

English

(c) 2006 Asia Pulse Pty Limited
An executive briefing on the telecommunications industry for March 7, 2006, prepared by Asia Pulse ( http://www.asiapulse.com ), the real-time, asia-based wire with exclusive news, commercial intelligence and business opportunities.
INDONESIA'S EXCELCOMINDO POSTS SHARPLY HIGHER NET LOSS FOR 2005
JAKARTA - Cell phone operator Excelcomindo Pratama (JSX:EXCL)) posted a net loss of Rp224 billion (US$24.3 million) last year up from Rp45 billion in the previous year.
The surge in loss was attributed by the company management to unexpected loss on foreign exchange with the rupiah fall in the third quarter of 2005.
BENQ LAUNCHES FIRST HANDSET IN CHINA, EYES GLOBAL MARKET
BEIJING - BenQ Corp. (TAIEX:2352) launched its first mobile phone in China under the BenQ-Siemens brand yesterday, kicking off a strategy to gain a niche in the world's most dynamic and complex mobile handset market.
Taiwan's BenQ, which acquired Siemens Mobile last year, said it will focus on expanding its product portfolio in the 3G area while using the multimedia advantages of BenQ to create handsets which are different to current models.
HUTCHISON AUSTRALIA'S US$404 MLN LOSS EXPECTED: ANALYSTS
SYDNEY - Mobile operator Hutchison Telecommunication's (ASX:HTA) massive half-billion loss for 2005 was in line with expectations, analysts said today.
Hutchison Telecommunications Australia Ltd today reported a $A547.30 million ($US404.65 million) annual net loss in 2005, down 20.7 per cent on the previous year.
SHARES IN JAPAN'S SOFTBANK SOAR ON NEWS OF VODAPHONE KK PURCHASE
TOKYO - Softbank Corp. (TSE:9984) shares ended 120 yen US$1.03) higher at 3,430 yen Monday following last week's news that the company had reached a basic agreement to purchase Vodafone KK, the local subsidiary of U.K . mobile phone giant Vodafone Group Plc.
Sparked by intensifying expectations for improved profits at its telecommunications division, Softbank stock recorded its first rebound in six days, with turnover leading the first section of the Tokyo Stock Exchange.
JAPAN'S KDDI TO OFFER COMBINED FIXED-LINE, MOBILE PHONE SERVICE
TOKYO - KDDI Corp. (TSE:9433) announced on Monday that it will begin in July a combined fixed-line and mobile telephone service for companies.
For the service, KDDI has developed the E02SA, a handset that is compatible with wireless-LANs (local area networks). The handset can be used as a mobile phone outside the company and for internal-line service inside the company.
INDIA'S BIRLAS TEAR UP TATAS ARGUMENTS ON IDEA
NEW DELHI - Tearing down the arguments of Tatas that as a group they were not promoters of telecom joint venture Idea and hence not obliged to exit the business, Birlas Monday urged the government to act fast on its plea, saying non-compliance by Tatas was "grave, wide ranging and comprehensive."
Continuing their tirade against Tatas, Aditya Birla Nuvo Ltd (ABNL), informed sources said, has shot off yet another letter to DoT, saying "it is nearing a month since we drew your attention as we believed we were obliged to.
AUSTRALIAN GOVT TO GET TOUGH WITH TELSTRA ON REGIONAL SERVICES
SYDNEY - Communications Minister Helen Coonan is to get tough with Telstra (ASX:TLS) over safeguards for the telco's regional phone and internet services.
The Australian Financial Review says Senator Coonan will demand, in a plan to be announced within days, that Telstra develop much more rigorous safeguards for its regional phone and internet services.
INDIAN TELCO MTNL EYEING INVESTMENT OPPORTUNITIES IN CHINA
NEW DELHI - State-run telco MTNL (BSE:MTNL) is exploring investment opportunities in Chinese telecom companies and also scouting Nigeria and Sri Lanka for investment opportunities and joint ventures in the wireless segment, the Rajya Sabha was informed today.
MTNL is exploring possibilities of investing in the Chinese telecom market. Various telecom technology companies are being considered for this purpose so that a decision for acquiring a stake can be taken, minister of state for IT and telecom Shakeel Ahmad said in a written reply to a question in Rajya Sabha.
S. KOREA FINES 3 TELECOM OPERATORS FOR ILLEGAL SUBSIDIES
SEOUL - South Korea's telecom regulator ordered the nation's three major mobile service operators Monday to pay a combined 19 billion won (US$19.5 million) in fines for their illegal business activities.
The Korea Communications Commission (KCC) fined SK Telecom Co. (KSE:017670), KTF Co. (KSE:032390) and LG Telecom Ltd. for providing illegal financial help to their customers in purchasing new handsets.
TATA TELESERVICES IN NEGOTIATIONS TO PRIVATELY SELL 20% EQUITY
NEW DELHI - Aiming at an investment of over Rs200 billion (US$4.52 billion) in two years in its telecom flagship Tata Teleservices, Tata Group is understood to be in the advanced stages of negotiations for selling up to 20 per cent equity to a clutch of Indian and foreign investors.
Some of the deals for private placement of equity of the closely held telecom company of the Group could come to fruition in coming weeks, sources in the know said.
ESSAR QUERIES INDIAN GOVT ON CLEARANCE FOR EQUITY SALE
NEW DELHI - Sale of over 10 per cent equity in telecom major Hutchison-Essar by the foreign partner to another foreign company Orascom has prompted the Indian partner to ask government if clearance was required for the deal.
Essar, the single largest equity holder in the mobile major, shot off letters to Prime Minister Manmohan Singh and Telecom Minister Dayanidhi Maran last week, after it failed in attempts to get a satisfactory answer from Hutchison.
(C) Asia Pulse Pte Ltd.
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Document APULSE0020060307e237002e6

INDIAN NEWSPAPER HIGHLIGHTS - MARCH 7, 2006
450 words

7 March 2006

Asia Pulse

APULSE

English

(c) 2006 Asia Pulse Pty Limited
NEW DELHI, March 7 Asia Pulse - Highlights of today's newspapers:
THE ECONOMIC TIMES:
- The US$2 billion Adobe Systems Inc is bullish on India. The company would be investing over US$200 million in the country over the next five years and will ramp up its India headcount to 900, up from 650, by the end of the year.
- US auto major General Motors' plans to reduce its holding in Suzuki to 3 per cent from 20.4 per cent will not have much implication for the Indian operations. Suzuki will continue to hold its 11 per cent stake in GM's South Korean arm GM Daewoo Auto & Technology Co.
THE FINANCIAL EXPRESS:
- The Mahanagar Telephone Nigam Limited (MTNL) is exploring investment opportunities in Chinese telecom companies and also scouting Nigeria and Sri Lanka for investment/joint ventures in wireless segment, the Rajya Sabha was informed on Monday.
- The India growth story is still intact and Indian equities remain a good asset class in the long term, Citigroup said Monday. The return on equity (RoE) of Indian companies is one of the best in the world. However, that is not the case for rest of the Asian equity markets.
BUSINESS STANDARD:
- Close to 20 sub-contractors of Nokia, including Finland-based companies such as Aspocomp, Salcomp, Perlos, Savcor and Ahlstrom, are looking to follow in the mobile giant's footsteps and set up shop in India. Their destination is the 210-acre Nokia special economic zone at Sriperumpudur near Chennai. This inflow of what are essentially high-tech companies that make and supply crucial gear for Nokia is expected to lead to investments of over US$1.3 billion by 2008.
- Essar Steel is tying up with Vietnam Steel Corporation to build a hot-rolled steel mill in Vietnam entailing an investment of US$300 million. The mill would be Vietnam's first to produce hot-rolled steel and would have a designed capacity of two million tonne per year.
THE HINDU BUSINESS LINE
- Aurobindo Pharma Ltd (APL) has announced that it has received product approval (notice of compliance) from Health Canada for Citalopram Hydrobromide 20 mg and 40 mg tablets. The tablets are indicated in the treatment of depressive disorders.
- The board of Macmillan India Ltd has approved the acquisition of 100 per cent of the shares of the US-based Interactive Composition Corp (ICC) for about Rs 150 million. This acquisition is expected to enhance Macmillan's presence in the US market and contribute to increased revenue growth in the North American region, a notice to the BSE said. ICC India has 300 employees while ICC US has 15.
(PTI)
Document APULSE0020060307e2370020a

Who Will Save the President?
by Chuks Akunna

1,496 words

6 March 2006

03:06 PM

All Africa

AFNWS

English

(c) 2006 AllAfrica, All Rights Reserved
Abuja, Mar 03, 2006 (This Day/All Africa Global Media via COMTEX) --
With just about 15 months to the end of his tenure in office, last Monday's declaration by President Olusegun Obasanjo of his intention to die for Nigeria, if the need arose, has, understandably ruffled a lot of political feathers. Obasanjo had reportedly told a visiting team of Chinese investors that "everything I do now is to protect Nigeria's interest, and if that will cost me my life, so be it."
Like a hornet's nest stirred, this declaration by Obasanjo, rather than elicit accolades, at least for the patriotic cocoon woven about it, has drawn flak from a cross section of Nigerians. Less than 24 hours after Obasanjo's declaration, fiery Lagos lawyer, Chief Gani Fawehinmi (SAN) led the pack in picking holes in the President's homily on patriotism and martyrdom. According to Fawehinmi, such homily was nothing short of "a political fraud, sugar-coated in propaganda of martyrdom." He wondered aloud why Obasanjo would insist of seeing to its logical conclusion his socio-economic and political reforms, when it was common knowledge that "governance of a country is a continuum."
"A nation has a permanent or near permanent sperm of life. No individual has. It is therefore a political fraud, sugar-coated in propaganda of martyrdom, for Obasanjo to tell Nigerians that he is prepared to die to achieve his so-called reforms," Fawehinmi countered.
Like him or not, President Olusegun Obasanjo is one man who could be said to have what it takes to talk on issues bordering on patriotism and the need for citizens to yield their lives for the overriding interest of the nation, if the need arose.
As a Sandhurst-trained officer in the Nigerian Army, Obasanjo would easily pass as one of the few Nigerians who have at one time or the other offered their lives for the ultimate good of the nation. From the early 1960's when he served in the United Nations' peacekeeping mission in the Congo, his stabilising role in the wake of the January 15, 1966 coup and the July 29, 1966 counter-coup, through his command of the 3rd Marine Commandos while the 30-month civil war lasted, Obasanjo could be described as a very patriotic Nigerian. It was Obasanjo who eventually formally accepted the Biafran surrender from the late General Joe Effiong, then acting head of the Biafran State.
In the post-civil war Nigeria, Obasanjo, at great personal risk, continued to play very crucial roles in nation building. He served as Federal Commissioner for Works under General Yakubu Gowon and later, as Chief of Staff Supreme Headquarters to Gowon's successor, the late General Murtala Muhammed. In fact, many today draw a parallel between Obasanjo's reform programmes and those of his late boss, Murtala Muhammed. There is also belief in some quarters that there is a strong co-relation between Murtala's radical reforms of 1976 and his eventual assassination.
Rather than being deterred by the gruesome murder of his boss and his miraculous escape, Obasanjo rose from the ashes of the misfortune to become Head of State and continued with the reforms. The present day Nigeria is replete with legacies left by Obasanjo - road networks, telecommunications, air and seaports, universities and polytechnics, petroleum refineries and allied industries, among others. Perhaps, one of the most courageous actions taken by Obasanjo, was his handing over of power to Alhaji Shehu Shagari on October 1, 1979. Majority of Obasanjo's kinsmen, the Yoruba, felt that he should have pulled the lever to install his "brother" the late Chief Obafemi Awolowo, President.
Despite his towering credentials, President Obasanjo cannot be said to be a lone ranger as far as patriotism and political martyrdom is concerned in Nigeria. The MKO Abiolas, the Kudirat Abiolas, the Dele Giwas, among others, are cases that easily come to mind of persons who could be said to have believed in their separate causes and died for Nigeria. Even during the Nigerian civil war, thousands, if not millions of soldiers died for the sake of Nigeria.
With this rich background of persons who have died for Nigeria, Obasanjo's recent declaration of his willingness to die for Nigeria should not have been taken by any beyond its face value. After all, what is wrong with a President ready to sacrifice his life for his nation? Conversely, everything could be said to be wrong with a President who is not ready to die for his country. Don't Presidents, at their inauguration, often vow to defend the Constitution of their country? And because of the interplay of centrifugal and centripetal forces involved in running a country, only the naA?Ave would not expect a tincture of death at one point or the other. This is why some political analysts hold that there is nothing new in what Obasanjo said. That he merely stated the obvious. That he merely harped on the need for citizens to borrow a leaf of patriotism from him.
Against this perspective, it could be tempting to dismiss critics of the Monday declaration by Obasanjo as merely creating a storm in a teacup. However, with a good knowledge of Obasanjo's psyche, the President's utterances, no matter how serious they may be, have been known to be couched in parables, proverbs or witty declarations.
For instance, shortly after his release from prison in 1998, Obasanjo had made light of reports that he was being groomed for the Presidency. "How many Presidents do you want to make out of me," he reportedly asked journalists. Also, it took the presence of South-south leaders of the Peoples Democratic Party, in late 2002, to make Obasanjo break his silence on whether or not he would seek a second term in 2003. Before that August visit, Obasanjo had kept the nation in suspense, insisting that he would make a pronouncement after a marathon session of fasting and prayers. It took the South-south delegation to make the President let the cat out of the bag. Even at that, Obasanjo did not come straight. He merely declared that there would be consequences if he sought for or failed to seek a second term in office.
With the experience of Nigerians in 1998 and 2002, it is the belief of many that Obasanjo's recent declaration on possible martyrdom, may not be without meaning after all. So also is the belief that Obasanjo is not alone in the boat of Nigerians willing to offer their lives. No matter how well-intentioned Obasanjo is, many believe the man has contributed so much to nation building and should move on. They believe that the only way left for him to honour Nigeria is to allow other well-intentioned Nigerians contribute their own quota. The present day Nigeria today has become more sophisticated. Ethnic crisis serrate the nation, bombing of oil installations have become commonplace, foreign oil workers are kidnapped with impunity, two serving state governors have lost their seats, with one standing trial; federal and sometime state government reportedly pay huge ransoms for their release, ethnic militias terrorise government security agents. In short, these are trying times for N igeria.
While these challenges may be seen as a build-up of several factors, analysts are agreed that it is an indication that all may not be well with the polity. The situation is not helped by the current suspense in the political turf. With just about a year to general elections, aspirants to the different political offices are not sure of what office to seek election into. Even Obasanjo, while declaring his intention to die for Nigeria, if need be, in another breadth admitted that "we must build and develop people within the system to drive this reform."
Kenneth Kaunda led Zambia to independence. He has since moved on. Julius Nyerere led Tanzania to independence, and even led the country to enviable heights. That, however, did not deter him from handing over the baton. At a time, Jerry Rawlings was synonymous with Ghana. Today, he has moved on and Ghana has become better for it. More recently, one of the most important political figures, Nelson Mandela quit the stage even when a majority of South Africans felt his presence was still very much needed.
Like Obasanjo once asked: "How many Presidents do you want to make out of me?" political watchers are waiting with bated breath as political events unfold. Of Nigeria's 46 years of political independence, Chief Olusegun Obasanjo has been Head of State for three and a half years, and is expected to preside over Nigeria for two terms of four years each, bringing the total number of years to close to 12 years. It is after May 29, 2007, Nigerians would be in a better position to know how many Presidents they succeeded in making out of Obasanjo.
Document AFNWS00020060306e236000ji

INDIAN TELCO MTNL EYEING INVESTMENT OPPORTUNITIES IN CHINA
265 words

6 March 2006

Asia Pulse

APULSE

English

(c) 2006 Asia Pulse Pty Limited
NEW DELHI, Mar 6 Asia Pulse - State-run telco MTNL (BSE:MTNL) is exploring investment opportunities in Chinese telecom companies and also scouting Nigeria and Sri Lanka for investment opportunities and joint ventures in the wireless segment, the Rajya Sabha was informed today.
MTNL is exploring possibilities of investing in the Chinese telecom market. Various telecom technology companies are being considered for this purpose so that a decision for acquiring a stake can be taken, minister of state for IT and telecom Shakeel Ahmad said in a written reply to a question in Rajya Sabha.
MTNL and BSNL are also proposing to lay a submarine optical fibre cable from the Eastern Coast of India to Singapore and the plan is at a conceptual stage.
The current preliminary indications are that the project is profitable, Ahmad said.
Even as the spectrum policy is still under consideration, the government is hopeful that some service providers may start rolling out third generation mobile services to offer voice, video and data at a higher speed in next fiscal.
While no time-frame has been fixed for introduction of 3G technology, some of the service providers may commence roll out of 3G services in the next financial year, he said.
Separately, a group of ministers has been constituted to deal with vacation of spectrum from defence, he said.
"Formulation of spectrum policy taking into account all relevant factors is under consideration. This would include mainly the efficient and optimal utilisation of spectrum, allocation procedure, spectrum pricing and introduction of emerging technologies.
(PTI)
Document APULSE0020060306e2360038p
This Day (Nigeria) - AAGM: Who Will Save the President?.
Chuks Akunna

1,495 words

3 March 2006

This Day (Nigeria)

AIWTHD

English

The Financial Times Limited. Asia Africa Intelligence Wire. All material subject to copyright. This Day (Nigeria) (c) 2006 All rights reserved
With just about 15 months to the end of his tenure in office, last Monday's declaration by President Olusegun Obasanjo of his intention to die for Nigeria, if the need arose, has, understandably ruffled a lot of political feathers. Obasanjo had reportedly told a visiting team of Chinese investors that "everything I do now is to protect Nigeria's interest, and if that will cost me my life, so be it."
Like a hornet's nest stirred, this declaration by Obasanjo, rather than elicit accolades, at least for the patriotic cocoon woven about it, has drawn flak from a cross section of Nigerians. Less than 24 hours after Obasanjo's declaration, fiery Lagos lawyer, Chief Gani Fawehinmi (SAN) led the pack in picking holes in the President's homily on patriotism and martyrdom. According to Fawehinmi, such homily was nothing short of "a political fraud, sugar-coated in propaganda of martyrdom." He wondered aloud why Obasanjo would insist of seeing to its logical conclusion his socio-economic and political reforms, when it was common knowledge that "governance of a country is a continuum."
"A nation has a permanent or near permanent sperm of life. No individual has. It is therefore a political fraud, sugar-coated in propaganda of martyrdom, for Obasanjo to tell Nigerians that he is prepared to die to achieve his so-called reforms," Fawehinmi countered.
Like him or not, President Olusegun Obasanjo is one man who could be said to have what it takes to talk on issues bordering on patriotism and the need for citizens to yield their lives for the overriding interest of the nation, if the need arose.
As a Sandhurst-trained officer in the Nigerian Army, Obasanjo would easily pass as one of the few Nigerians who have at one time or the other offered their lives for the ultimate good of the nation. From the early 1960's when he served in the United Nations' peacekeeping mission in the Congo, his stabilising role in the wake of the January 15, 1966 coup and the July 29, 1966 counter-coup, through his command of the 3rd Marine Commandos while the 30-month civil war lasted, Obasanjo could be described as a very patriotic Nigerian. It was Obasanjo who eventually formally accepted the Biafran surrender from the late General Joe Effiong, then acting head of the Biafran State.
In the post-civil war Nigeria, Obasanjo, at great personal risk, continued to play very crucial roles in nation building. He served as Federal Commissioner for Works under General Yakubu Gowon and later, as Chief of Staff Supreme Headquarters to Gowon's successor, the late General Murtala Muhammed. In fact, many today draw a parallel between Obasanjo's reform programmes and those of his late boss, Murtala Muhammed. There is also belief in some quarters that there is a strong co-relation between Murtala's radical reforms of 1976 and his eventual assassination.
Rather than being deterred by the gruesome murder of his boss and his miraculous escape, Obasanjo rose from the ashes of the misfortune to become Head of State and continued with the reforms. The present day Nigeria is replete with legacies left by Obasanjo - road networks, telecommunications, air and seaports, universities and polytechnics, petroleum refineries and allied industries, among others. Perhaps, one of the most courageous actions taken by Obasanjo, was his handing over of power to Alhaji Shehu Shagari on October 1, 1979. Majority of Obasanjo's kinsmen, the Yoruba, felt that he should have pulled the lever to install his "brother" the late Chief Obafemi Awolowo, President.
Despite his towering credentials, President Obasanjo cannot be said to be a lone ranger as far as patriotism and political martyrdom is concerned in Nigeria. The MKO Abiolas, the Kudirat Abiolas, the Dele Giwas, among others, are cases that easily come to mind of persons who could be said to have believed in their separate causes and died for Nigeria. Even during the Nigerian civil war, thousands, if not millions of soldiers died for the sake of Nigeria.
With this rich background of persons who have died for Nigeria, Obasanjo's recent declaration of his willingness to die for Nigeria should not have been taken by any beyond its face value. After all, what is wrong with a President ready to sacrifice his life for his nation? Conversely, everything could be said to be wrong with a President who is not ready to die for his country. Don't Presidents, at their inauguration, often vow to defend the Constitution of their country? And because of the interplay of centrifugal and centripetal forces involved in running a country, only the naA?Ave would not expect a tincture of death at one point or the other. This is why some political analysts hold that there is nothing new in what Obasanjo said. That he merely stated the obvious. That he merely harped on the need for citizens to borrow a leaf of patriotism from him.
Against this perspective, it could be tempting to dismiss critics of the Monday declaration by Obasanjo as merely creating a storm in a teacup. However, with a good knowledge of Obasanjo's psyche, the President's utterances, no matter how serious they may be, have been known to be couched in parables, proverbs or witty declarations.
For instance, shortly after his release from prison in 1998, Obasanjo had made light of reports that he was being groomed for the Presidency. "How many Presidents do you want to make out of me," he reportedly asked journalists. Also, it took the presence of South-south leaders of the Peoples Democratic Party, in late 2002, to make Obasanjo break his silence on whether or not he would seek a second term in 2003. Before that August visit, Obasanjo had kept the nation in suspense, insisting that he would make a pronouncement after a marathon session of fasting and prayers. It took the South-south delegation to make the President let the cat out of the bag. Even at that, Obasanjo did not come straight. He merely declared that there would be consequences if he sought for or failed to seek a second term in office.
With the experience of Nigerians in 1998 and 2002, it is the belief of many that Obasanjo's recent declaration on possible martyrdom, may not be without meaning after all. So also is the belief that Obasanjo is not alone in the boat of Nigerians willing to offer their lives. No matter how well-intentioned Obasanjo is, many believe the man has contributed so much to nation building and should move on. They believe that the only way left for him to honour Nigeria is to allow other well-intentioned Nigerians contribute their own quota. The present day Nigeria today has become more sophisticated. Ethnic crisis serrate the nation, bombing of oil installations have become commonplace, foreign oil workers are kidnapped with impunity, two serving state governors have lost their seats, with one standing trial; federal and sometime state government reportedly pay huge ransoms for their release, ethnic militias terrorise government security agents. In short, these are trying times for N igeria.
While these challenges may be seen as a build-up of several factors, analysts are agreed that it is an indication that all may not be well with the polity. The situation is not helped by the current suspense in the political turf. With just about a year to general elections, aspirants to the different political offices are not sure of what office to seek election into. Even Obasanjo, while declaring his intention to die for Nigeria, if need be, in another breadth admitted that "we must build and develop people within the system to drive this reform."
Kenneth Kaunda led Zambia to independence. He has since moved on. Julius Nyerere led Tanzania to independence, and even led the country to enviable heights. That, however, did not deter him from handing over the baton. At a time, Jerry Rawlings was synonymous with Ghana. Today, he has moved on and Ghana has become better for it. More recently, one of the most important political figures, Nelson Mandela quit the stage even when a majority of South Africans felt his presence was still very much needed.
Like Obasanjo once asked: "How many Presidents do you want to make out of me?" political watchers are waiting with bated breath as political events unfold. Of Nigeria's 46 years of political independence, Chief Olusegun Obasanjo has been Head of State for three and a half years, and is expected to preside over Nigeria for two terms of four years each, bringing the total number of years to close to 12 years. It is after May 29, 2007, Nigerians would be in a better position to know how many Presidents they succeeded in making out of Obasanjo.
Distributed by AllAfrica Global Media. (allafrica.com)
FTDL47582997
Document AIWTHD0020060307e23300023
Space

Satellite upswing

BY CHRISTIAN LARDIER

4,752 words

1 March 2006

Interavia

IBZT

42

683

English

Copyright 2006 Interavia. All Rights Reserved.
The telecom satellite market is showing the first signs of a recovery that is widely expected to gather momentum in 2006
In retrospect, 2005 looks like it could go down as a transition year for the telecom satellite sector - the market was relatively stable, with real growth expected to take off this year. The year was also marked by the appearance of some new platforms. There are now six EADS Astrium Eurostar 3000 and four Alcatel Alenia Space Spacebus-4000 platforms in orbit, and all are reported to be operating perfectly.
The global market for the whole of last year amounted to 24 contracts worth around $2 billion, though not all of these were open to competition between the different manufacturers. Some contracts were for the orbital equivalent of the aircraft manufacturers' "white tails" - a satellite built for a customer who is ultimately unable to launch it, and which is subsequently placed in storage until a contract has been signed with a new customer. This was the case for Thaicom-4, which remained in storage in Cannes for several years before becoming Agrani-2, then Thaicom-5 (IPStar-1 having in the meantime been redesignated Thaicom-4). Other contracts were only open to certain manufacturers, e.g. satellites for China, which must be "non-Itar restricted", as was the case with Chinasat-6B.
Option confirmations
In some cases, the contract merely concerned the confirmation of an option under an existing agreement, or the launch of ground backup satellites (such as AMC-18). Still other deals involved captive markets, with no competition at all. Examples are Isro's Insats (government satellites) and the Yamal satellites for Gazkom. NigSatcom-1, meanwhile, is in a category of its own - a barter deal involving a Chinese satellite for Nigerian oil; a similar type of deal is now being negotiated with Venezuela.
Taking all these factors into account, Olry Gérard, who is v-p marketing for telecom satellites at EADS Astrium, reckons that only nine of the contracts concluded in 2005 were truly open to competition ... of which his company won two. The first was Astra-1M (5.3t) for SES Astra - a Eurostar-E3000 initially equipped with 36 high-power Ku-band transponders, due to be launched in early 2008. "We are delighted that SES has once again shown its confidence in EADS Astrium, and we are convinced that this contract inaugurates a new phase of cooperation with this leading operator," he comments. EADS Astrium also won the contract to build the South Korean Communications, Ocean & Meteorological Satellite, COMS-1, scheduled to be launched in 2008. This will be a geostationary satellite carrying a Ka-band telecommunications payload, as well as oceanic and meteorological instruments. The contract is a key one for EADS Astrium as it concerns one of the company's two prime target markets - Asia and North America.
The telecom satellite market can be divided into three segments, according to onboard power capability: small (up to 4-5kW), medium (5-10kW) and large (more than 10kW). The past year saw an unusual influx of orders for small platforms, which accounted for a total of 11 contracts - AMC-18 and Bsat-3A from Lockheed Martin, PanAmSat-11, Horizons-2, Thor-2R and Measat-1R from Orbital Sciences, Zohreh from NPO PM, Yamal-301 and -302 from RKK Energia, Insat-4E from Isro and Amos-3 from IAI.
At the other end of the spectrum, orders for top-end "heavy" satellites remain few and far between, so that the market is essentially dominated by satellites in the medium range.
Gérard says that, after the "crisis years" at the start of the decade, he expects a slight market upswing in 2006, with the market moving from an average of 14-15 orders over the past few years to a level in the 18-20 range for the second half of the decade. Forecasts predict orders for a total of 86-88 satellites (over 3,000 36MHz transponders) over the coming five years, worth an estimated $9-10 billion. Two-thirds of these orders will be for replacement satellites, with the remainder generated by new requirements, mostly from the major operators. A significant amount of open competition is therefore expected.
EADS hopes to grab a 20% slice of this pie (measured in dollar value), or the equivalent of three to four satellites per year (two Eurostars, plus one or two smaller platforms). The company has focused efforts on expanding its product offering in order to position itself to submit bids in all segments of the market. That is the reasoning behind its small-satellite alliance with Antrix, the commercial arm of the Indian Space Research Organisation (ISRO). Within the partnership, EADS Astrium is the prime contractor and supplies the payload, while Isro supplies the I2K/I3K platform and performs integration. The product offering is fully competitive with that of Orbital Sciences, as was underlined when the alliance announced its initial success - a contract to supply the W2M satellite for Eutelsat Communications. EADS hopes to win one or two contracts like this each year.
At the top end of the market, the company is partnered with Alcatel Alenia Space in developing the 12-18kW Alphabus platform, which should be available around 2009. Alphabus (see box) is being pursued under the European Space Agency's ARTES technology programme with a view to creating "a European leader to compete on the world market with a unique product in the high power range beyond present European capabilities". The programme also envisages the procurement of the protoflight model of Alphabus as a precursor to support a maiden mission called Alphasat. Eutelsat, Inmarsat and Telespazio have been selected by ESA to pursue so-called "Phase A" activities on Alphasat.
From the point of view of applications, TV broadcasting accounts for half of the global market. The arrival of high-definition TV is expected to give a further boost to this business. In the fixed services sector, there is trend towards increased demand from military/government customers, which is expected to continue over the coming years. Mobile services, meanwhile, have been given new impetus by the arrival of Inmarsat's Broadband Global Area Network (BGAN) - billed as the world's first voice and broadband data mobile communications service accessible anywhere on the planet.
Cautious on broadband
Gérard, however, remains cautious about the future development of broadband applications: "Half of the market will be driven by the major operators, particularly in North America and Asia - regions where we are already present and where we hope to increase our market share. Canada's Telesat has placed its third consecutive order with us, for Nimiq-4, the 14th Eurostar-E3000 platform, which clearly demonstrates customer satisfaction. However, competition remains fierce. The number of players has not changed. Pressure on prices is enormous, and teh dollar exchange rate plays against us."
In response, EADS Astrium is constantly striving to improve competitivity in terms of costs and industrial processes. The Eurostar-E3000 product range has been rationalised. A lot of effort is also going into technology innovation. Plasma propulsion systems are now operating in orbit with excellent results on three satellites, with Li-Ion batteries on two satellites. Meanwhile, the excellent performance of the Inmarsat-4 mobile payload points the way to the development of flexible payloads that can be reconfigured in orbit (active antenna, onboard processor, etc). The company is confident that it is well placed in terms of operational excellence, quality and reliability.
For Alcatel Alenia Space (AAS), 2005 will go down as the year that saw the introduction of its Spacebus-4000 platform, now validated in orbit on AMC-12, Apstar-6, Syracuse-3A and AMC-23. The company also supplied payloads for MTSat-1R, Express-AM2, Express-AM3 and XM-3. The year gone by was marked, too, by the successful entry into service of France's Syracuse-3 military telecoms system, eagerly awaited by the French MoD and NATO. The company also won contracts to supply three satellites (Star One-C2, Thaicom-5 and Chinasat-6B) and the payload for Israel's Amos-3, out of a total of 19 orders in 2005, according to Blaise Jaeger, who heads the Telecom Business Unit at AAS.
In addition, AAS was selected, in partnership with EADS Astrium, as the preferred supplier for Germany's Satcom-BW military telecom satellite. The two companies are also working together on development of the Alphabus heavy platform. Like EADS Astrium, AAS has added a small platform at the lower end of its product range, in partnership with Russia's NPO PM. The alliance combines the Express-AM platform with an AAS payload. The product was short-listed in the Thor-2R competition but did not win the contract.
AAS is scheduled to deliver a total of six satellites in 2006 - Hot Bird-7A (successfully launched by an Ariane 5/ECA on 11 March), Thaicom-5 (Ariane, May), Syracuse-3B (Ariane, June), Koreasat-5 (Sea Launch), Star One-C1 (Ariane) and Galaxy-17 (Ariane). It will also deliver five payloads during 2006 - for MTSat-2 (launched on an H-2A on 18 February), Arabsat-4A (victim of a Proton launch failure on 28 February), Kazsat-1 (Proton, June), XM-4 (Sea Launch) and Arabsat-4B (Proton).
Since its creation on 1 July 2005, AAS has sought to gain maximum leverage from its French and Italian business portfolios. With the Sicral and Syracuse-3 satellites, the company will supply 62% of NATO requirements under the Satcom Post-2000 programme. The Globalstar constellation is also poised for a revival. The eight backup satellites are being prepared for launch on Soyuz or Proton to maintain the constellation in an operational configuration. AAS is also seriously looking at solutions for a second-generation Globalstar system.
In addition, AAS is focusing on new applications, such as multimedia services for cell phones, within a new company jointly operated by the Mobile and Satellite divisions. This type of service is based on hybrid (land- and space-based) networks. Eutelsat has proposed a complementary S-band payload on the three satellites that it plans to order this year. This project is expected to see the light of day in 2008. A similar application is under consideration for ESA's Alphasat programme.
Satellite radio for Europe?