With the expiration of its two-year no-compete deal with Intelsat, Loral Skynet once again can offer Fixed Satellite Services (FSS) to customers in North America via its Telstar 12 and Telstar 14/Estrela do Sul satellites, as well as third-party capacity that Loral can access.

For Loral Skynet, which completed the sale of its six North American satellites to Intelsat in 2004 — raising $1.1 billion to pay off the then-bankrupt Loral Space & Communications’ $959 million secured bank debt — the return to North American skies is a welcome homecoming. Loral, parent company of Loral Skynet, concluded its reorganization and emerged from Chapter 11 bankruptcy protection in November.

Telstar 14/Estrela do Sul offers Ku-band capacity across North America and Telstar 12 offers Ku-band capacity as far west as Denver. Likewise, the company has leased four transponders aboard Satmex 6, which is scheduled to begin service this summer. Then there’s Telstar 11N. When it enters service over the Atlantic Ocean in the second quarter of 2008, it will cover about two-thirds of the United States, plus Central America, the Caribbean, all of Europe and Africa.

Even though North America is considered a mature market for satellite services, the market for various applications remains robust, and Loral may have a significant chance in gaining strategic market share within this satellite-populated region. Undoubtably, Loral’s strategic growth will come from enterprise and government services, reaching beyond mere bandwidth sales. Loral Skynet was one of the first in North America to offer end-to-end solutions when others were focused on selling transponder space. Dedicated Loral customers who valued that offering may rekindle the relationship, joining new customers who seek complete network offerings and helping Loral establish its place back in the North American market.

Likewise, Loral Skynet’s Telstar 12 and Telstar 14 could provide enough space segment to make some bandwidth customers happy, primarily government agencies and enterprise customers who require regional rather than national coverage. What may really make the difference for Loral Skynet in North America is its reputation for strong customer service rather than the number of transponders the company has available. Other satellite operators have had struggles with customers in building a robust relationship. If Loral Skynet can maintain its customer service reputation, it will make some clients who have been waiting to use the company’s space segment happy, as well as help revive Loral’s North American FSS business.

For Loral, North America remains what it has always been: a robust market for advanced voice, video and data. If the company plays its cards right — namely in the Internet Protocol end-to-end data delivery and enterprise network segments — Loral could find growth with the right offerings. Working in conjunction with terrestrial and wireless services also will be paramount for any operator, not just Loral, if they wish to gain more market share within North America.

The landscape has changed dramatically. Today’s customers are more satellite savvy and not worried about moving from one service provider to another if that company is more completely meeting customer’s long-term needs. Specialized services, attention to delivering complete offerings and the ability to change business direction ultimately will separate the new market winners from those in second and third. It is no longer enough to offer a wide footprint. The depth of service, customer support and network diversification will drive the future of the mature North American market.