Arianespace has won a contract to launch two satellites for iSky’s proposed broadband service by offering much-needed financial help to assist the start-up company.

The financing will allow iSky to launch two Ka-band geostationary satellites that will be dedicated to Internet services for homes and small businesses. The broadband capability will offer users high-speed transmission services with short response times in North and South America. If successful, iSky would look to expand into other regions.

The first launch is scheduled for third quarter 2001, while the second one is slated for mid-2002, according to Arianespace officials who announced the deal Feb. 2 at the Satellite 2000 International Conference and Exhibition, sponsored by Phillips Business Information, Inc., publisher of MOBILE SATELLITE NEWS.

Each launch contract should generate a minimum of $75 million in revenues for Arianespace, based on standard industry pricing. Arianespace’s financing program helped to win the deal in a fierce competition from lower-priced launchers. The financial support enticed iSky to sign up with probably the world’s most expensive launcher. Once iSky begins offering services and obtains other sources of financing, Arianespace will be repaid.

The first iSky satellite, iSky 1, will be built by <ST>Space Systems/Loral [LOR]<E> and will be located at 109 degrees W. The second bird, iSky 2, is under bid for a satellite manufacturer. That satellite is scheduled to be placed at 73 degrees W.

Formerly KaSTAR Satellite Communications, iSky plans to roll out service in North America in 2001 and follow-up in 2002 with service to Latin America.