[Satellite News 06-01-10] Space Systems/Loral (SS/L) and International Launch Services (ILS) were selected to build and launch the Anik G1 multi-mission satellite for Telesat, which will support DTH television broadcasting in Canada, government requirements over the Americas and the Pacific, and broadband, voice, data and video services in South America when it goes into service.
   SS/L will build Anik G1 based on its 1300 modular platform and ILS will launch the satellite on its Proton vehicle in the second half of 2012.
From an orbital location at 107.3 degrees West, Anik G1 aims to provide significant growth for Telesat. The spacecraft’s 16 Ku-band transponders in the extended FSS band have been leased to support Shaw Direct’s Canadian DTH video platform and  12 of its Ku-band and 24 of its C-band transponders will both replace and expand on Telesat’s Anik F1 satellite serving South America. Anik G1 also will have capacity operating in the X-band frequencies over the Americas and the Pacific Ocean.
   “The Space Systems/Loral platform offered us the flexibility to build on the commitment of a key Telesat customer, Shaw Direct, that will use Anik G1 to expand their video service offerings across Canada," Telesat President and CEO Dan Goldberg said in a statement.
   ILS President Frank McKenna hailed his company’s second ILS Proton award from Telesat this year. “[The contract] is a clear demonstration of our longstanding relationship and the confidence they have in ILS Proton. Anik G1 is a powerful satellite that plays a pivotal role in the expansion of satellite services in Canada and South America, but also for civil and military applications with its innovative X-band payload.”
   The Anik G1 boost comes at a good time for Telesat, which is looking to bounce back from a $5 million revenue decline at $199 million reported in its 2010 first quarter. The operator concluded its agreement with Shaw Direct for a new payload on Anik G1 during the quarter, which Goldberg said underscored the strength of his company’s North American direct-to-home video business and contractual backlog. “Incremental revenue contributions from Nimiq 5 and Telstar 11N and continued discipline on the cost side of our business resulted in strong growth in adjusted EBITDA and a meaningful improvement in Telesat’s adjusted EBITDA margin,” said Goldberg.
   Telesat’s utilization rates for its North American and international fleet stand at 87 percent and 77 percent, respectively. The company’s backlog is about $5.8 billion.
   SS/L’s contract may boost the value of the company as Loral CEO Michael Targoff announced his intention to sell a portion of Loral’s SS/L stake in May.
   "In order to further support the growth in SS/L’s business, we intend to pursue an initial public offering for the sale of up to 19.9 percent of SS/L. We are working with two leading investment banks in connection with the planned IPO and for the evaluation of other possible strategic alternatives,” Targoff said.
   The contract follows a strong first quarter performance for Loral’s satellite service and manufacturing interests that generated net income of $29.4 million during the quarter and recovered from the $10.8 million loss it suffered in the first quarter of 2009.
   In terms of its ILS launch provider choice. Telesat continues to seek options outside of the United States to save on costs. But, in a December 2009 interview with Satellite News, Goldberg said he remains a supporter of a vibrant U.S. launch sector. “Telesat supports having more commercial launch providers in the market. The U.S. government is working to reduce costs and improve efficiencies in all areas of its operations. It’s also important to note that the U.S. government is the largest purchaser of commercial satellite capacity. This provides the U.S. government with an additional economic incentive to ensure the industry has access to affordable and reliable launch services.”