by Stephane Chenard

One of the most exciting trends in satellite broadcasting is the use of digital technology to distribute niche programming to television viewers around the world. Thanks to digital compression and an increasing array of satellites, ethnic programmers in particular are beaming a growing number of popular television services to their far-flung expatriates.

Moving the signals from one end of the world to another, however, can be a complex procedure involving numerous spacecraft. To make this process easier, broadcasters look for ideally situated teleports that give them access to the broadest array of birds. One new facility recently opened on the sunny island republic of Cyprus, where customers can now turn their signals around to and from a large number of the world’s most popular satellites.

On September 8, Cypriot president Glafkos Clerides and other high-level government officials and diplomats gathered to inaugurate a joint venture of the Cyprus Telecommunications Authority (CYTA) and British company Merlin Communications International Ltd. The 50/50 venture, Iris Gateway Satellite Services Ltd., was specifically created to offer turnaround services to some of the world’s hottest birds. At the opening event, Clerides recalled his "firm belief that our strategic geographic position and our sound infrastructure are assets to be exploited."

Cyprus’ position in the eastern Mediterranean gives it a good view of the orbital arc reaching from Brazil to the People’s Republic of China, and is along the path of major fiber-optic cables connecting Europe to Asia. Iris is designed to take advantage of these natural assets.

The new Iris gateway comprises one 11-meter C-band transmit antenna and three receive antennas at CYTA’s Makarios earth station, which CYTA will operate and Merlin will remotely monitor from London.

The deal is significant for Merlin, a company formed in a management buy-out of some of the British Broadcasting Corp.’s transmission networks. Merlin uplinks signals to Sirius 2 from leased facilities in the United Kingdom and is building another teleport in Fareham, on the English Channel. "In conjunction with [Iris], we can see most of the world via satellite," says Anver Anderson, Merlin Communications’ head of satellite sales. "We expect to become a major player, competing with teleports in Asia and with the likes of British Telecom and NTL in the United Kingdom, as well as turnaround services already operational in the Middle East."

To better serve the digital programming community, Iris’ principal services are based on the DVB platform, explains Anderson, allowing for the provision of video, audio and data distribution, as well as emerging IP backbone services.

Iris signed its first major deal in August with a five-year contract to turn television and radio channels around for the Ministry of Information of Saudi Arabia from Arabsat 2A onto Asiasat 2. Asiasat accounts for most transponder demand on the Europe-to-Asia route, plucking content from Intelsat 707, Arabsat 2A and Eutelsat for rebroadcasting on Asiasat 2.

CYTA, for its part, is expanding its horizons, as the Cypriot home market becomes increasingly well-served. Currently, Cyprus has achieved a 60.7 percent teledensity, and one-third of the population owns cellular telephones as of the end of 1998. "Our strategy is to expand internationally," explains CYTA chairman Michalakis Zivanaris. The company’s monopoly on most telecommunications services has made it relatively prosperous, giving it money to invest in new projects like Iris.

Zivanaris says talks on possible alliances are also ongoing in Russia, other former Soviet republics such as Georgia and unnamed Middle Eastern countries. CYTA is already a partner in the Black Sea cable system. In general, business is also brisk between Russia and Cyprus, with billions of dollars flowing from companies in Moscow to friendly banks in Cyprus. Cypriot businesses also hold large stakes in a number of Russian telephone companies, including second-largest long-distance carrier Svyazinvest, which is controlled by Cyprus-based investors. Securing solid alliances in these markets could make CYTA even more valuable to other telecommunications companies.

Although it is in the process of deregulating, CYTA’s monopoly on domestic services means Iris is not allowed to uplink services originating in Cyprus. "Iris can accommodate services originating anywhere in Europe, the Middle East or Asia," Anderson emphasizes, "and provide turnaround services to anywhere throughout these regions."

Stephane Chenard is a contributing writer to Via Satellite.