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Cover Story - Chain Reaction
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Satellite Uplinking

New player Europe*Star busy with the BBC
October/November 2001


Satellite operator Europe*Star, based at Feltham near London's Heathrow Airport, is a new enterprise, established by France's Alcatel Space (51 per cent) and Loral Space & Communications (49 per cent) together with a small interest still held by the Dr Schulte Hillen Group of Germany, which originated the project and made the original satellite filing reservations.


Alain Roger, CEO
Europe*Star originally filed rights to three orbital slots (43, 45 and 47.5 deg East) but is now concentrating on the 45 and 47.5 deg East slots. Its EuropeStar 1 craft was launched on October 29 2000 to the 45 deg E position, replacing a temporary bird (a former KoreaSat craft, now continuing a role as Europe*Star B at 47.5 deg East).

Europe*Star's CEO Alain Roger says his company is increasingly busy with direct uplink contracts to his satellites. For example it recently looked after the BBC's transmissions of the British Golf Open tournament from Royal Lytham St Anne's, a quite massive undertaking with up to five consecutive feeds for the BBC totalling more than 50 MB of transmission space. Roger says that besides organic growth, Europe*Star is also seeking expansion possibilities.

Roger adds, "We will look at opportunities from wherever they come. We have also invested about $20 million in our Toulouse facility ground segment so that it can control satellites, ours and many more. It means we are ready to take on a wider role, including the control of Stellat. We are keen to see this side of the business develop."

EuropeStar 1 is a high-power SS/L FS1300 craft, and markets itself to five key regions given specific footprints, ranging from Europe, the Middle East, Southern Africa, India and SE Asia. As part of the Loral Global Alliance, Europe*Star also offers a one-stop shop for broadcasters, occasional use and ISP's as well as inter-regional connectivity through the Alliance.

Roger says Europe*Star is now pursuing a three pronged approach to expansion. "There are three axis of development. Our own organic growth, the Toulouse facility and such new ventures as they present themselves. Do not view us as a monolithic company just selling [satellite] capacity."

As to that organic growth, Roger says that with Europe*Star 1 only being operationally available at the end of last year they are well on their way to a 50 per cent utilisation target. "What we could say is that the demand we are regularly receiving has significantly improved since the satellite has been in our hands. Customers see us as a new operator and are keen to see how the tool is implemented. This is important for us, in particular for occasional use video traffic and the regular bookers of that segment."

Last year Europe*Star (30 per cent) struck a $250 million joint-venture agreement with France Telecom (70 per cent) to launch Stellat in Q3/2002. At 4100 kgs, Stellat is a heavy bird and will be co-positioned at 5 degrees West with 10 C-Band and 35 Ku-Band transponders. Stellat's launch next year means Europe Star 2 will slip a little, says Roger. "We may not need to have it in place as quickly as late-2002. Much also depends on how long it takes for the Indian DTH picture to become clearer. We certainly will launch, but as to the exact date. Overall, the market needs to prove it exists and the delay might allow us to evolve the exact configuration. Consequently we have procured the satellite up to a point where we can then speed-modify the precise configuration. We have another few months, until June this year, before we need to make that decision."

Indeed, Europe*Star is placing great store on the Indian market, both in terms of uplinking directly targeting services for India once the DTH situation becomes clearer, and for Indian expatriates. "Europe*Star's utilisation is mainly Internet and video contribution, and where people are interested - but not yet implemented - is the broadcast of a bouquet of programmes from different places."

As to India's own DTH potential, Roger is forced to be patient. "Our niche is large. Star TV has not yet managed to enter India and even with the new Broadcasting Bill it isn't going to be easy. Our object is to stay very close to the people working in this sector, and choose the correct moment."

Elsewhere, Europe*Star is moving forward aggressively. A new office has been opened in South Africa, for example. "We have fully tested up and downlinks for Telecom South Africa, and everything has passed. Now, the question is to use these successful tests to secure business with several South African organisations. Again, there are regulations in place until 2003, and Telecom South Africa can block an entry. So, again we have to seek local approvals having notified the authorities that our customers are ready," says Roger. Europe*Star has 76 countries and potential markets under its footprint. "Dealing with one market might be a challenge, so we have to make some adjustment for those responsibilities."