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ABS and Satmex jointly buy all-electric Boeing satellites

Connectivity BusinessbyConnectivity Business
March 12, 2012
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Asian satellite operator Asia Broadcast Satellite and its Mexican counterpart Satélites Mexicanos have entered into a joint procurement agreement with Boeing Satellite Services International to acquire four all-electric 702SP satellites. The first two…

Asian satellite operator Asia Broadcast Satellite and its Mexican counterpart Satélites Mexicanos have entered into a joint procurement agreement with Boeing Satellite Services International to acquire four all-electric 702SP satellites.

The first two satellites, ABS-3A and Satmex 7, are scheduled to be delivered together in late 2014 or early 2015, when they will be launched separately by two SpaceX Falcon 9 rockets. Details about the other two satellites, including names and launch plans, will be announced at a later date.

Under the terms of the contract, the two satellite operators also have the option to order a fourth additional satellite. Boeing would not comment on when the deadline was for the companies to decide on whether to exercise this option.

While the purchase and delivery of the satellites was governed under a joint procurement agreement, ABS and Satmex will pay Boeing and Space X separately.

None of the parties involved would comment on whether the US Export Import Bank has provided support for the deal.

The 702SP ‘small platform’ satellite is the first all-electric spacecraft developed by Boeing. The advantage of this is that it is far lighter than a conventional geostationary satellite, meaning that a satellite operator could add more transponders or lower its launch costs. SatelliteFinance understands that the satellites, which can carry up to 46 active transponders depending on frequency band and desired power levels, are also cheaper than traditional geo satellites.

The downside to the satellite is that, depending on the configuration, the light-weight xenon-fuelled ion thrusters will take up to six months to propel the satellite to its orbital slot.

Craig Cooning, vice president and general manager of Boeing Space & Intelligence Systems said: “Boeing invested two years in designing the 702SP ‘small platform’ satellite, which will operate in the 3- to 8-kilowatt power range. This is a natural evolution of our highly successful Boeing 702 product line and enables Boeing to continue its legacy of creating capable, low-risk, flexible designs at affordable prices.”

A Boeing spokeswoman told SatelliteFinance that Boeing is currently in talks with other satellite operators over ordering the new satellites and that the company has no concerns over its construction capacity.

She said, “It is important to understand that all of our satellites are built in the El Segundo factory and each new order we receive ensures a continuing production line regardless of satellite model, whether SP, MP or HP. We have ample capacity to build multiple satellites at once and in fact our current backlog is 32 satellites. We are no where near reaching capacity.”

Global FSS operator SES recently revealed that it is likely to issue an RfP for an all-electric satellite in the next few months. As well as Boeing, Orbital Sciences is believed to have developed an all-electric spacecraft.

As for Boeing’s current customers, while both have large satellites already under construction with Space Systems Loral, Satmex-8 and ABS-2, the joint procurement order will have a significant impact on the position of their respective businesses in the global FSS market. For ABS, the new spacecraft will help it develop a global presence, with ABS-3A enabling the company to move beyond its Asian oriented base and offer services in the Atlantic Ocean region.

For Satmex, the new satellite is expected to replace Solidaridad 2 as well as provide new expansion capacity. Having agreed to a pre-packaged plan of reorganisation and US$460m recapitalisation in early 2011, Satmex has moved quickly to secure its future prposerity by replacing its ageing fleet. The company has lucrative orbital slots given the rapid rise in demand for capacity in Latin America and CEO Patricio Northland said that the new spacecraft would predominantly be used to provide direct-to-home and data services.

Tags: Asia Broadcast Satellite (ABS)Boeing Satellite SystemsSatmexSpaceX
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