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Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged - ii - March 15, 2001
Preface to Ka-band Application
Telesat is pleased to submit its response to Industry Canada’s Call for Applications to Develop and
Operate Fixed-Satellite Space Stations in the 118.7° W Longitude Orbital Position (Canada Gazette
Notice DGRB-008-00).
This application for the Ka-band licence at 118.7° West Longitude (WL) is submitted in four
volumes: an Executive Summary; Volume 1 – Qualification; Volume 2 – Telesat's Solution; and
Letters of Support.
Telesat claims confidentiality for the Executive Summary, Volume 2 – Telesat’s Solution, and portions
of the appendices of Volume 1- Qualifications, whereas the remainder of Volume 1- Qualifications is
not considered to be confidential. The confidentiality claim is based on Telesat’s operation in a
competitive market. Disclosure of the information would prejudice the Company’s competitive
position. Abridged versions have been submitted separately.
Telesat has also submitted under separate cover an application for the C and Ku-band licence at
118.7° WL. It is the Company’s position that its acceptance of the Ka-band licence is contingent
on Telesat obtaining the C and Ku-band licence.
For ease of reference, a Cross Reference and Compliance Table is included as Appendix 1 to both
Volume 1 and Volume 2. This table relates each section of the Call for Applications to the relevant
section(s) of Telesat’s response.
The contact regarding this application is:
Mr. John Forsey, P.Eng.Director, New Satellite Ventures and International CoordinationTelesat Canada1601 Telesat CourtOttawa, OntarioK1B 5P4
Telephone: (613) 748-8700 ext. 2530Fax: (613) 748-8712e-mail: j.forsey@telesat.ca
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged - iii - March 15, 2001
TABLE OF CONTENTS
SECTION PAGE
1.0 INTRODUCTION...........................................................................................................1-1
2.0 TECHNICAL SOLUTION..............................................................................................2-1
2.1 INTRODUCTION......................................................................................................................................... 2-1
2.2 SATELLITE SYSTEM DESIGN OVERVIEW ...................................................................................... 2-1
2.3 SPECTRUM REQUIREMENTS................................................................................................................ 2-8
2.4 SATELLITE DESIGN................................................................................................................................ 2-11
2.4.1 Payload Overview........................................................................................................................ 2-11
2.4.2 Functional Description................................................................................................................ 2-12
2.4.2.1 The Ka-band Antennas ........................................................................................... 2-12
2.4.2.2 The Forward Link..................................................................................................... 2-13
2.4.2.3 The Return Link........................................................................................................ 2-14
2.4.4 Bus and Launcher Compatibility .............................................................................................. 2-15
2.5 SATELLITE PROGRAM.......................................................................................................................... 2-17
2.5.1 RFP Preparation Stage................................................................................................................ 2-18
2.5.2 Proposal Evaluation and Negotiations Stage.......................................................................... 2-18
2.5.2.1 Contract Provisions to Enforce Schedule and Quality....................................... 2-19
2.5.3 Procurement Stage....................................................................................................................... 2-20
2.5.3.1 Schedule..................................................................................................................... 2-20
2.5.3.2 Program Management ............................................................................................. 2-21
2.5.3.3 Design Assurance .................................................................................................... 2-21
2.5.3.4 Assembly, Integration and Test............................................................................. 2-21
2.5.4 Launch and Mission Stage......................................................................................................... 2-22
2.5.4.1 Launch Operations................................................................................................... 2-22
2.5.4.2 Mission Support ....................................................................................................... 2-22
2.5.4.3 In-Orbit Test (IOT)................................................................................................... 2-22
2.6 INTERIM USE OF KA-BAND SPECTRUM........................................................................................ 2-23
2.7 FREQUENCY CO-ORDINATION & REGULATORY REQUIREMENTS.................................. 2-23
3.0 BENEFITS TO CANADA...............................................................................................3-1
3.1 BRIDGING THE DIGITAL DIVIDE........................................................................................................ 3-3
3.2 BENEFITS TO CANADIAN STAKEHOLDERS.................................................................................. 3-5
3.3 BENEFITS TO FIRST NATIONS COMMUNITIES............................................................................. 3-7
3.4 BENEFIT TO PUBLIC INSTITUTIONS................................................................................................. 3-9
3.5 BENEFIT TO CANADIAN MANUFACTURERS.............................................................................. 3-12
3.6 BENEFIT OF MEETING PUBLIC POLICY OBJECTIVES............................................................. 3-15
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged - iv - March 15, 2001
4.0 BUSINESS SOLUTION ..................................................................................................4-1
4.1 TELESAT MARKETS................................................................................................................................. 4-1
4.2 TELESAT TRANSPONDER SUPPLY AND DEMAND..................................................................... 4-3
4.3 THE KA-BAND SATELLITE MARKET ................................................................................................ 4-5
4.3.1 Global Trends and North American Market ............................................................................. 4-5
4.3.2 The Competitive Landscape........................................................................................................ 4-7
4.3.2 The Canadian Broadband Satellite Market ............................................................................... 4-9
4.4 BUSINESS ECONOMICS........................................................................................................................ 4-10
4.4.1 Capital Expenditures ................................................................................................................... 4-11
4.4.2 Operating Expense...................................................................................................................... 4-12
4.4.3 Revenues....................................................................................................................................... 4-12
4.4.4 Financing Requirements............................................................................................................. 4-14
5.0 A SOLUTION FOR CANADA - BRIDGING THE DIGITAL DIVIDE..........................5-1
LIST OF TABLES
Table 2-1 Satellite Features ..................................................................................................... 2-2
Table 2-2 Forward Link Budget............................................................................................... 2-4
Table 2-3 Return Link Budget.................................................................................................. 2-5
Table 2-4 Payload Parameter Summary...................................................................................2-11
Table 2-5 Compatible Launch Vehicles ...................................................................................2-17
Table 2-5 Program Schedule ...................................................................................................2-20
Table 4-1 Capital Expenditure Estimates .................................................................................4-12
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged - v - March 15, 2001
LIST OF FIGURES
Figure 2.1 Coverage........................................................................................................ 3
Figure 2.2 Spectrum Requirements Summary.................................................................... 8
Figure 2.3 Network Connectivity ..................................................................................... 9
Figure 2.4 Ka-band Payload Functional Block Diagram....................................................12
Figure 2.5 Payload Mass Capabilities of Current Spacecraft Buses....................................16
Figure 2.6 Payload Power Capabilities of Current Spacecraft Buses..................................16
Figure 3.1 Rural vs. Urban Households ............................................................................ 1
Figure 3.2 Predominantly Rural Regions .......................................................................... 2
Figure 3.3 Rural Vs. Urban Institutions ...........................................................................11
Figure 4.1 Annual Revenues by Business Segment......................................................... 4-1
Figure 4.2 Canadian Orbital Positions and Satellites....................................................... 4-3
Figure 4.3 Revenue Comparison of Satellite Operators (1999- $M US) ........................... 4-7
Figure 4.4 Ka-band ITU Filings in the 80º to 130º WL Orbital Arc ................................. 4-8
LIST OF APPENDICES
Appendix 1 Cross Reference and Compliance Table
Appendix 2 List of Acronyms
Appendix 3 Canadian Satellite Broadband Market Analysis
Appendix 4 Corporate Profiles of COM DEV and EMS Technologies
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-1 March 15, 2001
1.0 INTRODUCTION
Ensuring that all Canadians have access to the social and economic benefits of the new
information and network-based economy, is a critically important element upon which we
will build our nation. Innovation and the ability to create the new building blocks of an
Internet society will determine Canada's role in the 21st Century.
“Canada will need to do much more than catch up with other contenders in the
Internet economy; it will have to overtake them. If all we have done after
another year is moved farther ahead, we will not have done enough. Our
businesses and institutions will have to make quantum gains, not modest ones, to
vault us to the forefront of the Internet economy. E-business must become
Canada's business.”
Report of the Canadian E-Business Opportunities Round Table
February 2001
Telesat believes that moving Canada ahead of other nations means ensuring that all
communities, all institutions, and all individuals are able to have equitable and affordable
access to broadband services. The landmass of Canada, coupled with our geographically-
dispersed population, requires the development of a unique and sustainable strategy to
serve all regions and communities. If Canada is to compete, all citizens, whether they are
in Glace Bay, Kamloops or Pangnirtung, must be on-line and contributing to Canada's
economic growth.
Because Internet access is more readily available in urban centres than in rural areas, there
are concerns that many Canadians cannot effectively participate in the benefits of the
Internet economy, whether we consider e-commerce or e-government. The ‘digital divide’,
as it has been referred to, has been highlighted as a concern in a number of recent
publications.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-2 March 15, 2001
“As governance becomes more dependent upon information available on theInternet, and participation in Internet-based networks or technology-basedinteraction with government, the voices of those who do not have access to, orfamiliarity with, the new technology may be increasingly marginalized in publicdebate.”
Opening the E-Government FileGoverning into the 21st Century
January 2001
“The growing digital divide among Canadians goes beyond connectivity andbandwidth. The issue is also access to hardware - computers and other Webdevices, for instance - and the technical wherewithal to navigate the Internet.A high-speed Internet connection gives Canadians access to education andimproved health care. It lets them participate in e-commerce and buildcommunities of interest with others who share personal and public concerns.It gives Canadian businesses, particularly those in small towns and remotecommunities, access to new markets and long-distance partnerships.
For the not-for-profit sector, it makes it easier for people to donate, and canpotentially offer a lifeline between disadvantaged populations and theorganizations that serve them.”
Fast Forward, Taking Canada to the Next Level.Canadian E-Business Round Table
February 2001
“[Phillipa] Lawson frequently argues for more affordable public access to digitaltechnology and training. She is concerned that the broadband revolution willexacerbate an already troubling 'digital divide' within Canada and globally.Networks need to be designed so local communities control their use.”
A Public Advocate Speaks Out Againstthe Threat of a Growing Digital Divide
Time MagazineMarch 12, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-3 March 15, 2001
Telesat's solution for the development of the Ka-band satellite spectrum at the 118.7º WL
orbital position proposes to eliminate the digital divide.
Telesat's vision for Canada provides a Ka-band satellite solution that will:
• bring the benefits of broadband telecommunications to each and every Canadian;
• strengthen Canada’s infrastructure for ‘next generation’ broadband technologies;
• accelerate access to broadband services for businesses, communities, individuals andgovernments; and
• increase development of Canadian content, applications, services and Canadianproducts.
The award to Telesat of the licence for the Ka-band satellite spectrum at the 118.7 WL
orbital position provides a unique opportunity for Canada and Canadians to realize several
important benefits. As described in detail in this Volume, Telesat proposes a Ka-band
satellite solution that:
• is innovative in its approach to the provision of a cost-effective broadband transmissionservice to individual Canadians located in remote and underserved areas – eliminatingthe digital divide;
• incorporates an all-Canadian design developed in collaboration with key firms in theCanadian satellite manufacturing sector, EMS and COM DEV;
• focuses its design to implement an advanced technology platform that meets the serviceneeds of Canadians while serving as an excellent demonstration of Canadiantechnology for export around the world;
• strategically secures Canada's continued access to Ka-band spectrum in the NorthAmerican arc; and
• creates a co-operative venture between the private and public sectors, to establishbroadband infrastructure that will foster economic growth and improve the quality oflife of Canadians regardless of location.
Telesat’s proposed solution provides a viable approach to linking all Canadian households
and institutions to broadband facilities. The challenge today is very similar to that faced by
the Government of Canada in the late 1960's, when provision of "basic" services to all
Canadians was the issue. The solution was a domestic satellite system providing television
and telephone services to all communities. This public/private partnership led to the
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-4 March 15, 2001
formation of Telesat Canada and to the launch of the world's first domestic geostationary
satellite system. The development of a Ka-band satellite system builds on this successful
solution and provides the opportunity for Canada to leap ahead of other nations by ensuring
broadband access to all.
Telesat's application is overwhelmingly supported by all key Canadian stakeholders from
across Canada. As noted in the selected comments below, these Canadians are passionate
in their support of Telesat and in their expressed desire to have Telesat continue to build
and expand its services to meet the needs of all Canadians.
“Telesat has a track record of more than 25 years of delivering satellitebased communication services to all parts of Canada. Over the last10 years, COM DEV has been working with Telesat and EMS inpartnership with the Communications Research Centre and the CanadianSpace Agency on the Advanced Satcom Initiative. The objective of theAdvanced Satcom Initiative was to develop and demonstrate thetechnologies required to deliver satellite based broadband services toCanadians. The major technologies have now been developed and thedemonstration of these services will be achieved through the Ka-bandpayload and related ground segment which is currently under constructionfor Telesat’s Anik F2 satellite. This development program stands out asone of the most successful examples of government/industry co-operationever achieved. Already, even before the completion of the program,international sales of the developed products has already exceeded thegovernment investment by a factor of five. Furthermore, the broadbandsystem which has been developed by the Canadian team caters to theunique needs of Canadians for broadband service to sparse and remotenorthern communities. Telesat’s Ka band proposal for the 118.7° orbitalslot represents the commercial conclusion to this Canadian developmentinitiative...”
John Keating, PresidentCOM DEV Space Group
March 5, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-5 March 15, 2001
“Telesat’s recent Ka-Band program with Anik F2 has created a Canadianindustry team that has enhanced the leading position established by EMSand Canadian industry in this new space based broadband multimediamarket...Telesat is ideally positioned to continue this activity and addresssome of the challenges of the recently appointed National Broadband TaskForce on how to make high-speed broadband Internet services available toall Canadian communities by 2004.”
Gerry Bush, President, Space & Technology GroupEMS Technologies
March 1, 2001
“CSUA is pleased to offer its full support for Telesat Canada’s application.CSUA’s support is based on a number of factors...Telesat has majortechnical support and facilities on the ground in Canada... [S]atellitetransmission is a critical part of the broadcasters’ business infrastructureand proximity of support is important to these organizations. Telesat’stechnical expertise is of a world-class stature and has significant value toCanadian customers...[I]t is important that Canada have a healthydomestic satellite supplier. The use of the 118.7 degrees WL slot is of greatimportance to Telesat’s continued growth and supply of capacity inCanada. A successful Canadian satellite supplier ensures that itsmanagement has a long-term commitment to the Canadian market.”
Don Braden, Executive DirectorCanadian Satellite Users Association
March 5, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-6 March 15, 2001
“Through my various high technology relationships I have been involvedwith Telesat on a number of other projects; I consider them to be a greatpartner as well as a true leader in global satellite services. They areworking with various partners throughout the industry towards providingbetter services to Canadians, particularly in the health care and educationmarkets.
I am offering to you Rebel.com’s support in your application to IndustryCanada to develop and operate a new satellite at the orbital position of118.7 degrees, west longitude. I know that, with the past record, whichTelesat has shown in working with and helping all Canadians, thecompany will certainly use this opportunity to do the same.”
John B. Kelly, Chief Executive OfficerRebel.com
February 26, 2001
“Keewaytinook Okimakanak wants to continue to work in partnership withTelesat Canada to research and develop new applications that will supportthe sustainability of the remote communities we serve. For these reasons,we want to support Telesat’s application in response to Industry Canada’sCall for Applications (DGRB-008-00) for the 118.7 degree orbital position.We look forward to be a partner in the exploration and development ofthese new frontiers that will place Canada as world leaders in satelliteservice delivery.”
Brian Beaton, Project LeaderKeewaytinook Okimakanak’s Kuh-ke-nah Network
of SMART First NationsJanuary 17, 2001
Canada’s satellite services sector is at a critical juncture. The continued development of an
indigenous Canadian satellite services system is directly linked to the timely availability of
spectrum resources. The final decision to award licenses for Ka-band satellite spectrum at
the 118.7° WL position will have important strategic implications for Canada, its citizens,
and the Canadian satellite industry.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 1-7 March 15, 2001
Given the current competitive environment, Telesat’s prospects for future growth and
financial viability are closely tied to the availability of scarce spectrum resources.
Spectrum is the raw material of the satellite business. While satellite markets in theAmericas continue to grow, the spectrum upon which this expanded business is based is
extremely limited. The Canadian government’s decision on the allocation of Ka-band
spectrum at 118.7° WL represents a unique opportunity to further enhance the range andquality of telecommunications and broadcast services available to Canadians. This
decision will also determine whether or not Canada will continue to have a national
presence in the global satellite services industry.
The rationale for the creation of Telesat Canada in 1969 was to ensure that Canadians had
access to leading-edge telecommunications and broadcast services through the ownership
and operation of a fleet of Canadian satellites. The establishment of those basictelecommunications and broadcast services was the result of the vision to provide all
Canadians with access to services that allow them to share in the benefits of Canada’s
economic growth and prosperity.
While the competitive landscape of the satellite services sector has changed, particularly
since the coming into force of the WTO GATS Agreement in March 2000, the veracity of
the original vision remains intact. The Government of Canada has committed itself tomaking Canada the most connected nation in the world. As the Government stated in its
press release announcing the formation of the National Broadband Task Force, Canada
must develop:
“A bold vision, a coherent strategy and strong partnerships will lead to
sustained innovation and increased prosperity. Together, this will ensure a
strong Canadian presence in the New Networked Economy.”
Telesat shares this vision. Ensuring access to broadband telecommunications and
broadcast services, regardless of where one resides in Canada, is the driving force behind
much of the government’s innovation-related activities. Telesat’s proposed Ka-bandsatellite at the 118.7° WL position offers the fastest and most cost-effective means for
Canada to realize the government’s ambitious vision. For many years, Telesat’s
research and development (R&D) activity has focused on Ka-band technologies.Telesat’s Ka-band satellite solution will provide ubiquitous access to the tools of the new
economy, empowering Canadians to contribute to enhanced economic growth and
prosperity.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-1 March 15, 2001
2.0 TECHNICAL SOLUTION
“The great distance between our communities precludes the use of cable ormicrowave-based communications. In Nunavut, we rely completely onsatellite technology within the Territory, and for contact with the rest of theplanet. In this way, we are unique in Canada: other jurisdictions have atleast 70% of their populations with access to land-based systems; inNunavut, this access is not available to anyone.”
Preliminary Report to the National Broadband Task ForceGovernment of Nunavut
February 9, 2001
2.1 INTRODUCTION
Telesat’s application features an innovative Ka-band satellite design which has been
specifically developed for Canada. The system concept has been developed in co-operation
with Canadian industrial partners, COM DEV and EMS Technologies. Profiles of these
partners may be found in Appendix 4.
The satellite design provides all rural, remote and suburban areas of Canada access to
high-speed broadband satellite capacity. The satellite spot beams and power densities have
been optimized to maximize the capacity available in all regions of Canada.
Telesat’s Ka-band satellite design delivers the speed, quality and affordability of urban
broadband services to rural and remote areas of Canada, no matter where in the country
they are located.
2.2 SATELLITE SYSTEM DESIGN OVERVIEW
The key system design features of the proposed Ka-band satellite are summarized in
Table 2-1 below.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-2 March 15, 2001
Table 2-1 Satellite Features
Platform Bent-pipe Ka-band payload
Orbital Position 118.7o WL
Geographic CoverageCanada coast-to-coast-to-coast via spot beams and spatial
frequency reuse; high capacity (~10 Gbps)
Network Connectivity Star configuration, broadband access
Launch Date 2005
Telesat’s satellite will provide high-speed Internet access throughout Canada using small,
low-cost terminals. The use of Ka-band spectrum is critical to the design, since enhanced
user benefits are derived from the use of the very small spot beams that are possible at
Ka-band frequencies. Small spot beams enable a high level of spatial frequency reuse.
This permits a high-capacity system to be designed, with commensurate lower costs per bit,
relative to conventional wide-beam satellites. Focusing of the satellite power into small
spot beams allows modest satellite amplifiers to be used to produce the required high
Effective Isotropic Radiated Power (EIRP). The small beams also permit the use of small
user-terminal antennas and/or transmit power amplifiers, thus reducing user terminal costs.
The small spot beams could also be used to optimize the geographic distribution of satellite
power and capacity to meet traffic load variations across the country.
Figure 2.1 illustrates the geographic coverage of the satellite. Full coverage of Canada isprovided by: 27 small spot beams, each approximately 0.7º x 0.3º; two high-power half-Canada spot beams; and one overlaid national beam. The national beam is intended forbroadcast multimedia applications (such as multicasting). The Ka-band spectrum will bereused fully among nine independent star networks, each with its own gateway providingconnectivity to terrestrial broadband services. Each of the nine gateways will reach itsnetwork of users via three adjacent user-link beams. The half-Canada beams and thenational beam will be homed on any of the nine gateways.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-3 March 15, 2001
Figure 2.1 Coverage
The system will be designed to effectively combat the higher rain-fade conditions expected
in the eastern part of Canada. This is achieved by allocating 3 dB more satellite transmit
power to the user-link beams shown shaded in Figure 2.1.
Telesat has designed the spot beam satellite and associated ground segment to meet the
connectivity needs of Canadian households. Typical link budgets for the Forward Link
(gateway to user) and Return Link (user to gateway) are shown in Tables 2-2 and 2-3,
respectively. These link budgets show that, with user-terminal antennas of 66 cm in
diameter, high data rates may be achieved with availabilities exceeding 99.6%.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-4 March 15, 2001
Table 2-2 Forward Link Budget
Forward LinkU Frequency (GHz) 30.0P Antenna Size (m) 5.6L Transmit Antenna Gain (dBi) 62.7I Transmit Losses (e.g., back-off, IFL, UPC error, wet ant) (dB) 6.0N UPC & ALC (dB) 16.4K Transmit Ground Power (UPC not invoked) (W) 15
Uplink EIRP (UPC not invoked) (dBW) 68.4Uplink Free Space Loss (dB) 213.6Uplink Atmospheric Loss (dB) 0.9Satellite G/T (dB/K) 19.0Uplink C/No - clear (dB-Hz) 98.6Satellite SFD (dBW/m2) -80.0PFD per Carrier (dBW/m2) -92.9Carrier IPBO (uplink clear) (dB) 12.9Carrier IPBO (uplink faded) (dB) 12.9Uplink Adjacent Satellite Interference (dB-Hz) 113.3 38.2 dB = C/I, same traffic, two adj sat @ 2°, 29 - 25 log 2 sidelobeUplink Intermodulation Interference (dB-Hz) 97.1 22.0dB = C/IUplink Cross-Polarization Interference (dB-Hz) 95.1 20.0dB = C/IUplink Co-Polarization Interference (dB-Hz) 93.1 18.0dB = C/IUplink De-Polarization Interference (dB-Hz) 91.4 30 log (freq) - 23 log (rain attenuation)Uplink Overall Interference (dB-Hz) 87.6 12.6dB = C/IUplink Pointing Losses & Equipment Level Variation (dB) 3.0Uplink C/(No+Io) - uplink clear (dB-Hz) 87.3Uplink Availability - 99.90%Uplink Fade (dB) 16.4Uplink C/(No+Io) - uplink faded (dB-Hz) 87.3
D Frequency (GHz) 20.0
O Antenna Size (m) 0.66W Receive Antenna Gain (dBi) 40.9N Antenna Temperature (°K) 40.0
L LNA Noise Figure (dB) 1.8I Receive Losses (dB) 0.2N System Temperature (downlink clear) (°K) 200
K System Temperature (downlink faded) (°K) 387Terminal G/T (downlink clear) (dB/K) 17.7Terminal G/T (downlink faded) (dB/K) 14.9
Satellite Saturated EIRP per Beam (dBW) 67.0 85% coverage (small elliptical)Downlink Free Space Loss (dB) 210.1Downlink Atmospheric Loss (dB) 0.9
Carrier OPBO (uplink clear) (dB) 9.5Carrier OPBO (uplink faded) (dB) 9.5Satellite EIRP per Carrier (uplink clear) (dBW) 57.5
Satellite EIRP per Carrier (uplink faded) (dBW) 57.5Downlink C/No (uplink clear) (dB-Hz) 92.4 17.3 dB = C/NDownlink C/No (uplink faded) (dB-Hz) 92.4Downlink Adjacent Satellite Interference (dB-Hz) 91.5 16.5 dB = C/I, same traffic, two adj sat @ 2°, 29 - 25 log 2 sidelobeDownlink Intermodulation Interference (dB-Hz) 91.6 16.5 dB = C/I, for a total OPBO of 2.5 dB, using linearized TWTAsDownlink Cross-Polarization Interference (dB-Hz) 95.1 20.0 dB = C/IDownlink Co-Polarization Interference (dB-Hz) 93.1 18.0 dB = C/IDownlink De-Polarization Interference (dB-Hz) 99.1 30 log (freq) - 23 log (rain attenuation)Downlink Overall Interference (dB-Hz) 86.3 11.3 dB = C/IDownlink Pointing Losses (dB) 0.5Downlink C/(No+Io) - uplink clear & downlink clear (dB-Hz) 85.4 10.3 dB = C/(I+N)Downlink C/(No+Io) - uplink faded & downlink clear (dB-Hz) 85.4Downlink Availability - 99.60%Downlink Fade (dB) 4.5 TorontoTerminal G/T Degradation due to Fade (dB) 2.9Downlink C/(No+Io) - uplink clear & downlink faded (dB-Hz) 82.6
T C/(No+Io) - no uplk or dnlk fade (i.e., both links clear) (dB-Hz) 83.2O C/(No+Io) - uplk fade only (i.e., clear dnlk) (dB-Hz) 83.2T C/(No+Io) - dnlk fade only (i.e., clear uplk) (dB-Hz) 81.3A C/(No+Io) - threshold (dB-Hz) 81.1L System Margin - clear (dB) 2.1
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-5 March 15, 2001
Forward LinkSystem Margin - faded (dB) 0.2
S Information Rate (control & FEC overhead bits excluded) (Mbps) 40.9586Y Control/Signaling Overhead Bits - 0%S Information Rate (only control overhead bits included) (Mbps) 40.9586T Convolutional Coding Rate - 0.83E Block Coding Rate - 0.922M Concatenated Coding Rate - 0.768
Channel Rate (control & FEC overhead bits both included) (Mbps) 53.3P No. of Bits per Symbol - 2A Eb/No - threshold (dB) 5.0 Turbo Eb/No = Concatenated Eb/No - 1.5 dBR Bit Error Rate - faded - 1E-10A One-Way (Tx-to-Rx) Link Availability - 99.5%M Ratio of Carrier Spacing to Symbol Rate - 1.35E Carrier Bandwidth (MHz) 36.00T Noise Bandwidth (MHz) 32.00E No. of Carriers per Transponder - 5R Transponder Bandwidth (Usable) (MHz) 180.00S Bandwidth Utilization per Carrier - 20%
Access Scheme - TDMSatellite MIPBO (dB) 5.9Satellite MOPBO (dB) 2.5Power Utilization per Carrier - 20%
Table 2-3 Return Link BudgetReturn Link Ka
U Frequency (GHz) 30.0
P Antenna Size (m) 0.66
L Transmit Antenna Gain (dBi) 44.5
I Transmit Losses (e.g., back-off, IFL, UPC error, wet ant) (dB) 2.0
N UPC Margin (dB) 3.0
K Transmit Ground Power (UPC not invoked) (W) 1.00
Uplink EIRP (UPC not invoked) (dBW) 42.5
Uplink Free Space Loss (dB) 213.6
Uplink Atmospheric Loss (dB) 0.9
Satellite G/T (dB/K) 19.0 85% coverage (small elliptical)
Uplink C/No - clear (dB-Hz) 74.6
Satellite SFD (dBW/m2) -94.0
PFD per Carrier (dBW/m2) -120.8
Carrier IPBO (uplink clear) (dB) 26.8
Carrier IPBO (uplink faded) (dB) 21.4
Uplink Adjacent Satellite Interference (dB-Hz) 84.2 20.0 dB = C/I, same traffic, two adj sat @ 2°, 29 - 25 log 2 sidelobe
Uplink Intermodulation Interference (dB-Hz) 86.3 22.0 dB = C/I
Uplink Cross-Polarization Interference (dB-Hz) 84.3 20.0 dB = C/I
Uplink Co-Polarization Interference (dB-Hz) 82.3 18.0 dB = C/I
Uplink White Noise Interference (dB-Hz) 86.3 22.0 dB = C/I
Uplink De-Polarization Interference (dB-Hz) 87.3 30 log (freq) - 23 log (rain attenuation)
Uplink Overall Interference (dB-Hz) 77.0 12.7 dB = C/I
Uplink Pointing Losses & Equipment Level Variation (dB) 1.0
Uplink C/(No+Io) - uplink clear (dB-Hz) 72.6
Uplink Availability - 99.6%
Uplink Fade (dB) 8.4 Toronto
Uplink C/(No+Io) - uplink faded (dB-Hz) 68.5
D Frequency (GHz) 20.0
O Antenna Size (m) 5.6
W Receive Antenna Gain (dBi) 59.2
N Antenna Temperature (°K) 70.0
L LNA Noise Figure (dB) 1.8
I Receive Losses (dB) 0.2
N System Temperature (downlink clear) (°K) 226
K System Temperature (downlink faded) (°K) 478
Terminal G/T (downlink clear) (dB/K) 35.5
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Return Link Ka
Terminal G/T (downlink faded) (dB/K) 32.2
Satellite Saturated EIRP per Beam (dBW) 63.0
Downlink Free Space Loss (dB) 210.1
Downlink Atmospheric Loss (dB) 0.9
Carrier OPBO (uplink clear) (dB) 24.6
Carrier OPBO (uplink faded) (dB) 30.0
Satellite EIRP per Carrier (uplink clear) (dBW) 38.4
Satellite EIRP per Carrier (uplink faded) (dBW) 33.0
Downlink C/No (uplink clear) (dB-Hz) 89.5 25.3 dB = C/N
Downlink C/No (uplink faded) (dB-Hz) 84.1
Downlink Adjacent Satellite Interference (dB-Hz) 99.0 34.7 dB = C/I, same traffic, two adj sat @ 2°, 29 - 25 log 2 sidelobe
Downlink Intermodulation Interference (dB-Hz) 79.8 15.5 dB = C/I, for a total OPBO of 3.5 dB, using linearized TWTAs
Downlink Cross-Polarization Interference (dB-Hz) 84.3 20.0 dB = C/I,
Downlink Co-Polarization Interference (dB-Hz) 82.3 18.0 dB = C/I,
Downlink De-Polarization Interference (dB-Hz) 81.6 30 log (freq) - 23 log (rain attenuation)
Downlink Overall Interference (dB-Hz) 75.6 11.4 dB = C/IDownlink Pointing Losses (dB) 2.0Downlink C/(No+Io) - uplink clear & downlink clear (dB-Hz) 75.5 11.2 dB = C/(I+N)Downlink C/(No+Io) - uplink faded & downlink clear (dB-Hz) 75.1Downlink Availability - 99.9%Downlink Fade (dB) 8.8Terminal G/T Degradation due to Fade (dB) 3.2
Downlink C/(No+Io) - uplink clear & downlink faded (dB-Hz) 73.4T C/(No+Io) - no uplk or dnlk fade (i.e., both links clear) (dB-Hz) 70.8O C/(No+Io) - uplk fade only (i.e., clear dnlk) (dB-Hz) 67.6T C/(No+Io) - dnlk fade only (i.e., clear uplk) (dB-Hz) 70.0A C/(No+Io) - threshold (dB-Hz) 67.1L System Margin - clear (dB) 3.7
System Margin - faded (dB) 0.5S Information Rate (control & FEC overhead bits excluded) (Mbps) 2.048Y Control/Signaling Overhead Bits - 0%S Information Rate (only control overhead bits included) (Mbps) 2.048T Convolutional Coding Rate - 0.50E Block Coding Rate - 0.92M Concatenated Coding Rate - 0.46
Channel Rate (control & FEC overhead bits both included) (Mbps) 4.445P No. of Bits per Symbol - 2A Eb/No - threshold (dB) 4.0 Turbo Eb/No = Concatenated Eb/No - 1 dBR Bit Error Rate - faded - 1E-10A One-Way (Tx-to-Rx) Link Availability - 99.5%M Ratio of Carrier Spacing to Symbol Rate - 1.52E Carrier Bandwidth (MHz) 3.378T Noise Bandwidth (MHz) 2.667E No. of Carriers per Transponder - 128R Transponder Bandwidth (Usable) (MHz) 432S Bandwidth Utilization per Carrier - 0.78%
Access Scheme - TDMASatellite MIPBO (dB) 5.8Satellite MOPBO (dB) 3.5Power Utilization per Carrier - 0.78%
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Earth Segment Requirements
The spot beam design of the satellite requires a gateway infrastructure in order to manage
the frequency reuse and to achieve the low-cost user terminals. Telesat proposes to design,
construct and operate nine gateways in order to achieve the high system availability and
performance demanded by our customers. It is expected that existing teleports will house
some of the gateways, and new points of presence will be constructed for the remaining
gateways.
The gateways will be the interface points between the satellite network and the terrestrial
voice and data networks, providing seamless communications support to the end users. The
gateways will also be connected to each other.
A gateway is comprised of facilities and communication systems. The facilities system
includes the land, building, foundation, fibre access, power and environmental subsystems,
and antenna de-icing. The communication system includes the antenna, Radio Frequency
(RF) transmitters, RF converters, and baseband subsystems (satellite modems, conditional
access, encryption, quality of service and dynamic bandwidth management elements). In
addition, all the subsystems are connected to an advanced network management system that
provides monitoring and control functions, automatic redundancy control, uplink power
control, and alarm notifications. The gateway monitor and control system will also be
linked to Telesat’s Network Operations Centre to ensure the highest possible levels of
service availability.
Telesat’s proposed advanced Ka-band satellite design will result in low-cost of space
segment per unit of capacity, due to its extensive frequency reuse and high capacity.
Equally important, it will enable very attractive user terminals. For example, a household,
no matter how remote, will be able to benefit from data rates of 40 Mbps on the Forward
Link and 1.5 - 2.0 Mbps on the Return Link. These broadband data rates will be provided
with a user terminal equipped with an antenna diameter about the same as those used in
Direct Broadcast Satellite (DBS) consumer receivers. In volume, user the user terminal
cost will be only hundreds of dollars. Such an attractive system will provide a complete
range of high speed Internet applications into every household and public institution.
Telesat and a number of Canadian partners have been actively developing Ka-band user
terminal technology for the past several years. Details may be found in Appendix 4.
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2.3 SPECTRUM REQUIREMENTS
As shown in Figure 2.2, the satellite requires a total of 1 GHz in each of the Earth-to-space
and space-to-Earth directions, and will use orthogonal circular polarization over the entire
spectrum.
Figure 2.2 Spectrum Requirements Summary
User links will be provided in the 29.5 – 30.0 GHz (Earth-to-space) and 19.7 – 20.2 GHz(space-to-Earth) bands. Feeder links will be provided in the 28.35 – 28.6 GHz and
29.25 - 29.5 GHz (Earth-to-space) and 18.3 – 18.8 GHz (space-to-Earth) bands. Such
usage is consistent with the approvals already granted by Industry Canada for Ka-bandsatellites at three other orbital locations.
(i) Small Spot Beam Networks
Figure 2.3 illustrates how the spectrum will be used by a given network and its three
associated small spot beams. Each gateway will uplink into the two segmentslabelled ‘A’ (28.35-28.6 GHz and 29.25-29.5 GHz) which provide a total of
2 x 250 MHz in each polarization. Each 250 MHz is further channelized into
channels with usable bandwidths of 180 MHz and 36 MHz. Each gateway willtransmit three of the four wideband 180 MHz channels available over the two ‘A’
segments (both polarizations) to the three beams in a network, one channel to each.
Telesat is considering various approaches for the fourth wideband channel (e.g.,allocating it to one of the three beams or sharing it over the three beams using
onboard switching).
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Figure 2.3 Network Connectivity
The small spot beam forward link channels will be translated into the ‘B’ segments
(19.7-20.2 GHz ) for the downlinks, using a similar channelization scheme.
On the return links, the user terminals will transmit in the ‘C’ segments
(29.5-30.0 GHz). This band will be further channelized into 36 MHz channels to
effectively handle the large number of small carriers from the user terminals. This
yields a total of 24 channels (both polarizations). Fifteen of these channels will be
assigned to the three beams in groups of five to match the three 180 MHz channels on
the forward link. Another 5 x 36 MHz channels will be allocated among the three
beams to match the fourth allocatable forward uplink of 180 MHz.
The satellite will translate the 36 MHz return link channels for reception by the
gateways in the ‘D’ segments (18.3-18.8 GHz). This entire scheme, forward and
reverse, is repeated for each of the nine networks.
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ii) Northern and National Service
The channelization scheme allocates a further four channels of 36 MHz bandwidth in
both the forward and return links to provide half-Canada and national service. These
services are provided through two half-Canada beams and one national beam. On theforward uplink, one channel is available on each polarization in each of the
28.35-28.6 GHz and the 29.25-29.5 GHz ‘A’ segments, for a total of four channels.
Each half-Canada beam will be assigned one of the four channels, and the other twochannels will be assigned to the national beam. Only the half-Canada beams will
have return links (the national beam is for broadcast (forward-link only)
applications). In the return link, the two half-Canada channels will be transmittedfrom the user terminal in the ‘C’ segment and translated into the ‘D’ segment for
reception by the designated gateways for the half-Canada beams.
Table 2-4 summarizes the design parameters for the entire system. On the forwardlink, the 180 MHz channels in each small spot beam will be implemented as
individual transponders, for a system total of 27 transponders. The implementation
of the remaining 5 x 36 MHz is still under consideration. The half-Canada andnational channels will be implemented as individual 36 MHz transponders, yielding
two national transponders and two half-Canada transponders.
On the return link, the downlink 12 x 36 MHz = 432 MHz of usable spectrum oneach polarization will be handled as a single 500 MHz transponder, resulting in a
total of 18 such transponders in the system.
Table 2-4 also shows the Travelling Wave Tube Amplifier (TWTA) requirements ofthe satellite. The satellite will use 120 W TWTAs. For the forward links of the 18
“dry” small beams (unshaded in Figure 2.1), each TWTA will be shared by two
180 MHz transponders, requiring 12 TWTAs. For the nine small “wet” beams(shaded in Figure 2.1), the required 3 dB of additional EIRP is achieved by allocating
one 120W TWTA per transponder, resulting in 12 “wet” TWTAs, for a total
requirement of 24. The half-Canada forward links will require one TWTA for eachof the two half-Canada beams and the national beam will require two sets of four
TWTAs, phase-combined, to provide the required EIRP for each of the channels.
The return links require one TWTA per transponder, for a total of 18 TWTAs. AllTWTA's are linearized (LTWTA) to achieve the maximum utilization of satellite
resources.
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Table 2-4 Payload Parameter Summary
Beams- Feeder-link- User-link- National
9 beams: 0.7º x 0.3º27 small beams: 0.7º x 0.3º + 2 half-Canada beams1 beam
Transponders- Forward- Return- Total
27 small + 2 half-Canada + 2 national1849
TWTAs (all 120 W)- Forward- Return- Total
12 wet + 12 dry + 2 half-Canada + 8 national = 341852 active + 13 redundant
EIRP- Forward- Forward- Return- National
65 dBW (wet) and 62 dBW (dry) per 180 MHz usable BW54 dBW (half-Canada) per 36 MHz usable BW65 dBW per 432 MHz usable BW54 dBW per 36 MHz usable BW
G/T- Forward- Return- National
19 dB/K small beams, 9 dB/K half-Canada beams19 dB/K4 dB/K (select areas)
C/I- Co-pol- X-pol- Intermod
18 dB – aggregate25 dB – aggregate16.5 dB for forward with 2.5 dB output backoff15.5 dB for return with 3.5 dB output backoff
2.4 SATELLITE DESIGN
2.4.1 Payload Overview
The Ka-band satellite is designed to provide coverage throughout Canada via 27 small spot
beams, two half-Canada beams and one overlaid national beam.
The spot beam system design is similar to that currently being implemented on Anik F2.
The main difference is the size of the beams (approximately 0.3° x 0.7° versus 0.8° in
diameter for Anik F2). In order to create beams of this size, the satellite will require
Ka-band transmit antennas with diameters in the range of 2 m. The 27 spot beams will be
used for nine separate star networks, each of which will operate independently with its own
gateway in an area covered by three beams.
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The half-Canada beams and the national beam are referred to as the Large Beam Network
(LBN). Since the coverage area of these larger beams overlaps that of the spot beams, the
frequency spectrum allocated to the LBN cannot be reused in the spot beams.
2.4.2 Functional Description
Figure 2.4 is a block diagram of the payload. The following sections provide a functional
description of the system.
Figure 2.4 Ka-band Payload Functional Block Diagram
2.4.2.1 The Ka-band Antennas
The antenna farm on the spacecraft will consist of seven reflectors with associated feeds.
Three 1.6 m reflectors will be used for the 27 satellite receive spot beams; i.e., nine feeds
per reflector. Similarly, on the satellite transmit side, 27 spot beams will also be created
using three reflectors, each 2 m in diameter. In both cases, the spot beams will be created
in both right-hand circular polarization and left-hand circular polarization for frequency
reuse.
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The seventh reflector of diameter 1 m will be part of a transmit/receive antenna for the
LBN. This antenna will have three separate feeds, using right-hand circular polarization for
the half-Canada beams and left-hand circular polarization for the national beam.
In order to maintain the pointing accuracy of the Ka-band spot beams, beacon tracking will
be necessary, requiring small beacon antennas as part of the antenna subsystem.
2.4.2.2 The Forward Link
The Forward Link consists of the Forward Uplink (satellite receive from the gateways) and
the Forward Downlink (satellite transmit to the users).
Each of the nine gateways will transmit four 180 MHz channels for its spot beam network
on the Forward Uplink, with each gateway using the same two non-contiguous raw
spectrum segments in two polarizations. The four channels from each gateway will be
received at the satellite by a separate feed of one of the 1.6 m receive antennas. An
orthomode transducer on the feed (or polarizer) will separate the received signal based on
polarization, producing the two co-frequency segments which will then be amplified by a
dual Low Noise Amplifier (LNA). A total of 18 dual LNAs (36 LNAs) is therefore
required for the spot beam Forward Uplink.
The two output segments of each dual LNA package will require separate Ka-to-Ka
downconverters with different translation frequencies. The resulting 36 channels will then
be filtered and amplified for downlink transmission on the Forward Downlink via the 2 m
transmit antennas. Each ‘wet-beam’ carrier (in the two eastern networks) will have a
dedicated 120W LTWTA; the dry channels will share LTWTAs in pairs. A total of
24 LTWTAs is therefore required for the spot beam Forward Uplink.
As noted above, the LBN will use dedicated spectrum, with polarization isolation between
the national beam and the two half-Canada beams. There will be one 36 MHz channel for
each of the half-Canada beams using right-hand circular polarization, and two 36 MHz
channels for the national beam using left-hand circular polarization. One of the gateways,
could act as the gateway for the LBN, and uplink these four 36 MHz channels along with
its 180 MHz channels. It should be noted that each of the LBN beams could also be
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assigned to a different gateway. The LBN 36 MHz channels will follow the same front-end
path as the spot beam channels transmitted by the gateway. However, after amplification
by the LNAs, they will be directed to separate output muxes and transmitted on the LBN
Forward Downlink by the 1 m antenna. A single LTWTA will be used for each carrier in
the half-Canada beams. The national beam channels will each require four phase-combined
LTWTAs to provide the required national EIRP.
Telesat's innovative system design permits total useable Forward Link spectrum, including
frequency re-use, of 6.624 GHz (i.e., 36 x 180 MHz + 4 x 36 MHz).
2.4.2.3 The Return Link
The Return Link consists of the Return Uplink (satellite receive from the users) and the
Return Downlink (satellite transmit to the gateways).
The Return Link will carry a large number of small channels, typically 500 kHz to 2 MHz
in bandwidth. Each of the 27 spot beams will have a spectrum allocation of 180 MHz,
channelized at 36 MHz. Additional spectrum of 180 MHz will also be made available to
each network for allocation among the beams in increments of 36 MHz. This allocation
will be implemented through a version of the COM DEV Beam*Link subsystem which is
also part of the Anik F2 payload. Beam*Link will provide the flexibility to increase the
uplink capacity of any one beam by 180 MHz, or to share the 180 MHz between the three
beams within the network, in increments of 36 MHz, as required to meet traffic demand
across the network’s coverage area.
The total usable network bandwidth of 720 MHz will be uplinked by the users in both
polarizations. Similar to the Forward Link, this uplink spectrum will be received through a
dual-polarized feed at the three 1.6 m reflectors, and an orthomode transducer, followed by
two dual LNAs, that will segregate and amplify each polarization. At the output of the
LNAs, the fixed-assigned spectrum of 180 MHz per beam will be directed to Ka-to-Ka
downconverters and input muxes for filtering prior to amplification by the LTWTAs.
Taking into account the dual polarization, this leads to a requirement of 54 downconverters
for the 27 beams.
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The payload will require one Beam*Link for each network, to handle the assignable
180 MHz of spectrum per network. The output of each LNA for the left-hand circular
polarization will be divided into two parts, and one part will be downconverted to L-band
before being fed to the appropriate Beam*Link. A 5-by-5 switch inside the Beam*Link
will be commanded on a semi-static basis to assign bandwidth in blocks of 36 MHz to one
or to all beams within one network. The output of each Beam*Link will then be
upconverted from L-band to Ka-band and re-combined with the permanently assigned
Return Link traffic intended for left-hand circular polarization. This is followed by
amplification before transmission to the gateways via the 2 m reflector.
For the half-Canada beam Return Link, the users will uplink the small channels for
reception at the satellite through the 1 m transmit/receive antenna. The half-Canada
coverage will use right-hand circular polarization. Capacity equivalent to 2 x 36 MHz will
be assigned, one per half-Canada beam. After the signals are received by the antenna,
dual-LNAs will amplify the signals, downconverters will translate frequencies, and input
muxes will filter the assigned bandwidth. The two frequency blocks of 36 MHz will be
combined into the spot beam Return Link before being amplified and transmitted to the
assigned gateway. A total of 18 LTWTAs is required for the Return Link, amplifying a
total usable spectrum, including frequency reuse, of 6.624 GHz.
2.4.4 Bus and Launcher Compatibility
The mass estimate for the payload is 900 kg. This includes 140 kg for the antennas,
Ka-band tracking beacon and 12-for-9 COM DEV Beam*Links. The power estimate is
10.5 kW.
Figures 2.5 and 2.6 show the types of buses that can accommodate a payload of these mass
and power requirements.
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Figure 2.5 Payload Mass Capabilities of Current Spacecraft Buses
Figure 2.6 Payload Power Capabilities of Current Spacecraft Buses
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All major manufacturers have at least one bus that can accommodate the Ka-band payload.
Table 2-5 presents the wide range of available compatible launch vehicles.
Table 2-5 Compatible Launch Vehicles
Compatible Spacecraft Buses Compatible Launch Vehicles
SB4000 Proton, Ariane 5, Delta IV, ATLAS V, Sea Launch
FS1300S Proton, Ariane 5, Delta IV, ATLAS V, Sea Launch
E 3000 Proton, Ariane 4/5, Delta III, IV, ATLAS III, V, Sea Launch
E 3000+ Proton, Ariane 5, Delta IV, ATLAS V, Sea Launch
BS702 GEM Proton, Ariane 5, Delta IV, ATLAS V, Sea Launch
A2100AXX Proton, Ariane 5, Delta IV, ATLAS V, Sea Launch
2.5 SATELLITE PROGRAM
Telesat has a worldwide reputation for excellence in the way in which it manages a satellite
program, as evidenced by the success of its own satellite programs and the considerable
demand for its consulting expertise. Further detail is provided in Section 5.2.2 of the
companion Volume 1- Qualifications of this application.
The satellite program typically starts with the preparation of a Request for Proposal (RFP)
for the spacecraft and associated ground equipment; and continues through to the satellite
end-of-life. This section deals specifically with the procurement cycle for the Ka-band
satellite to be launched into 118.7º WL, up to hand-over for commercial operations.
Awarding the licence to Telesat to develop the 118.7º WL orbital position will give
Industry Canada the assurance of meeting the in-service date established in the Call for
Applications . No other operator has such an enviable track record of satellite program
performance.
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2.5.1 RFP Preparation Stage
Telesat has a well-established system for preparing an RFP for a spacecraft procurement.
Typically, this process takes six to eight weeks to complete.
The RFP consists of six parts, as follows:
PART I Instructions to Bidders, which is generic.
PART II Statement of Work , which is generic, with minor changes to accommodate thespecific spacecraft design.
PART III Spacecraft Technical Specifications, which include the spacecraft technical
specifications, the test requirements and the product assurance requirements.The bus and product assurance requirements are generic but are updated as
required. The payload technical requirements are specific to the payload
design and traffic requirements. The test requirements are derived from ageneric outline, but are tailored to the payload design. These sections take the
longest time to prepare.
PART IV Satellite Control and Operations Technical Specifications, which define all the
requirements for the satellite control ground system, are mostly generic.
PART V Pro Forma Contract Terms & Conditions is a generic document with minor
changes to accommodate the specific spacecraft design. These form the basis
for contract negotiations.
PART VI Price Proposal Format, which is generic.
2.5.2 Proposal Evaluation and Negotiations Stage
The RFP requires that the proposal be submitted in a standard format, which allows easy
dissemination of the data to the evaluation team. The sections are as follows:
PART A Technical PART B Program Management PART C Price PART D Compliance
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Telesat creates an evaluation team under a Team Leader and prepares an initial evaluation
within the first three days. The purpose of the initial evaluation is to determine the overall
compliance of each proposal, the major risk areas and any major omissions. This results in
the first round of questions to the bidders and the creation of a schedule for the detailed
assessment. The detailed assessment typically takes a further 10 to 14 days and generates
additional, more detailed, questions relating to the design. The results of the evaluation are
then presented to Telesat senior management for review. Representatives of a short list of
bidders are then invited to Telesat, in sequence, for a maximum of three days each to
negotiate an Authorization to Proceed (ATP).
Following the selection of the successful contractor, negotiations continue in order to
complete the technical specification and contract documents.
This approach has been used successfully on Telesat’s most recent satellite procurements.
It has been shown to provide the best quality spacecraft within the minimum time period.
2.5.2.1 Contract Provisions to Enforce Schedule and Quality
To obtain a commitment from the satellite contractor on delivery, Telesat includes a
liquidated-damages provision. Should the satellite be delivered later than the contractual
delivery date, the contract price would be reduced by a pre-agreed amount. Telesat also has
provisions in its satellite contracts allowing termination of the contract in the event that the
contractor fails to meet pre-agreed defined events within a specific period. Payment
milestone requirements of the contract also encourage adherence to the delivery schedule.
Telesat will make milestone payments to the contractor only as program milestones are
achieved, in accordance with the Statement of Work .
Telesat contracts specify monitoring by Telesat of all the key aspects of the spacecraft
development, manufacture, integration and test. This enables early identification of
potentially serious engineering or schedule problems and ensures that corrective actions are
taken to minimize the impact on performance and schedule.
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2.5.3 Procurement Stage
2.5.3.1 Schedule
A typical schedule for a standard fixed satellite service (FSS) spacecraft is 20 to 24 months.
The proposed Ka-band spacecraft is considerably more complex than a standard FSS
spacecraft, so the schedule to completion will be longer. In addition, very few Ka-bandspacecraft have been built to date and schedules are typically 32 to 36 months in duration.
Based on the Anik F2 program, Telesat will request a 32 month program for delivery to the
launch site. Telesat will allow for the launch to be three months after the projectedspacecraft completion date for contingency. Following delivery to the launch site there is
an additional month for the launch campaign, 10 days for the mission and a further month
for in-orbit testing (IOT).
The resulting top-level schedule for the Ka-band satellite at 118.7º WL is shown in
Table 2-5.
Table 2-5 Program Schedule
Event Duration Completion DateAward of 118.7º WL Ka-band licenceto Telesat
No later than July 1, 2001
RFP Issued 2 months September 1, 2001Proposal preparation 2 months November 1, 2001Evaluation of proposals 10 weeks January 15, 2002Final design specifications submitted toIndustry Canada
No later than February 1, 2002
Final contract for spacecraft and launch February 15, 2002Spacecraft procurement 32 months October 15, 2004Contingency 3 months January 15, 2005Launch campaign 1 month February 15, 2005Mission and In-Orbit Testing 45 days April 1, 2005Delivery on orbit April 1, 2005
Telesat will take all necessary steps to ensure deliver on-orbit of the satellite as early as
possible.
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2.5.3.2 Program Management
The Telesat Program Manager will be appointed following the completion of the proposal
review and upon selection of a contractor for negotiations. The Program Manager is
responsible for regular contact with the contractor’s Program Manager, and also coordinates
the activities of the Telesat team at the manufacturer’s site and Telesat’s headquarters.
In Telesat’s experience, the most cost-effective approach to satellite monitoring is to have
bus and payload experts permanently on-site at the manufacturer’s facilities, supported by
experts from headquarters, as required for key events. These Resident Engineers, by
focusing on areas of spacecraft design, manufacturing, assembly and test, performance,
reliability, Product Assurance and schedule, ensure that the Contractor carries out its
contractual obligations.
2.5.3.3 Design Assurance
Telesat will arrange for a Preliminary Design Review (PDR) to be held within the first three
months of the program and a Critical Design Review (CDR) to be held within nine months
of the start of the program. The Telesat engineering team will review the design data
provided up to the PDR, as well as the PDR data packages, to ensure compliance with the
performance requirements and to identify any risk areas. The progress of the design and
procurement will be closely monitored up to the CDR and any issues identified will be
added to the CDR agenda. Key specialists in each of the subsystem areas will participate in
the design reviews, raising issues and action items as required.
2.5.3.4 Assembly, Integration and Test
Telesat will monitor and review all the pertinent fabrication, assembly and test operations at
unit level for the antennas, transponders, batteries, solar panels, power electronics, telemetry
and command electronics, thermal control system, attitude control system, propulsion
system, structures and mechanisms. During the payload integration, Telesat will monitor
and review all test data to ensure that the payload performance meets the contractual
requirements. Telesat will also monitor the spacecraft-level integration and test program
including pre-environmental system performance tests, environmental testing,
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-22 March 15, 2001
post-environmental testing, and range testing. Telesat will also participate in all the
contractor status reviews, test readiness reviews, test data reviews, and any technical
reviews related to anomalies or problem resolution. This active participation allows early
identification of performance issues and allows Telesat to work closely with the contractor
in problem resolution.
2.5.4 Launch and Mission Stage
2.5.4.1 Launch Operations
Telesat will monitor the launch vehicle progress throughout the spacecraft build program
and will participate in all interface meetings between the spacecraft contractor and launch
agency up to the launch date. When the spacecraft is shipped to the launch site, a Telesat
technical team will accompany it to a field office at the launch site. The Telesat team will
monitor the final spacecraft integration, fueling, mating to the launch vehicle, and all
combined operations.
2.5.4.2 Mission Support
Telesat will participate in all mission planning activities and mission rehearsals. Telesat
will also provide a team to monitor the transfer orbit mission between the time of separation
from the launch vehicle to achieving the geostationary orbital location of 118.7° WL.
2.5.4.3 In-Orbit Test (IOT)
Telesat defines the IOT requirements in the contract. Acceptance of the spacecraft by
Telesat will occur upon successful completion of the IOT. The bus testing will be
performed from the contractor’s facility, whereas the payload testing will be performed
from Telesat’s Allan Park facility using Telesat equipment. The Telesat team monitors the
contractor’s preparations for IOT, reviews the IOT plan and procedures, and participates in
the actual tests.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-23 March 15, 2001
2.6 INTERIM USE OF KA-BAND SPECTRUM
Telesat has developed a Ka-band satellite design and program that will comfortably meet
the implementation milestones as outlined in the Call for Applications. Furthermore,
Telesat has committed to incorporate a small Ka-band payload aboard the C and Ku-band
satellite that it has proposed for the 118.7º WL orbital location.
If awarded the C and Ku-band licence at the 118.7º WL orbital location, Telesat will be
able to make some early-entry Ka-band services available to Canadians as early as 2003.
In addition, the Ka-band payload on the C and Ku-band satellite will be a safeguard to
ensure that the Ka-band spectrum at the 118.7º WL orbital location remains in Canadian
hands, even in the event of unforeseen delays in the in-service date of the Ka-band satellite.
Moreover, Telesat's Anik F2 satellite which contains a Ka-band payload, is currently under
construction and will be in service in early 2003. Anik F2 will provide the initial Ka-band
multimedia services to Canadians. The Ka-band payload and associated ground segment
for Anik F2 are being developed by Telesat and its partners: the Canadian Space Agency
(CSA), the Communications Research Centre (CRC), EMS and COM DEV.
Only Telesat is in a position to ensure retention of Canada’s international priority for the
118.7° WL orbital position. Only Telesat can build on its long-term vision for Ka-band
services at the 118.7° WL orbital position beginning in 2003.
2.7 FREQUENCY CO-ORDINATION & REGULATORY REQUIREMENTS
As outlined more fully in Volume 1 of this application, Telesat has a division of
experienced engineering staff dedicated to satellite coordination and International
Telecommunications Union (ITU) activities, and is active in both domestic and
international co-ordination of its earth stations.
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Telesat Canada Abridged 2-24 March 15, 2001
The design of the Ka-band satellite to be located at the 118.7° WL orbital position has
been carefully considered to ensure full compliance with the ITU Radio Regulations
(and, in particular, with Articles S21 and S22) and with domestic regulations. Service
links will occupy the bands 19.7 – 20.21 GHz on the downlink and 29.5 – 30.0 GHz on
the uplink. Feeder links will occupy the bands 18.3 – 18.8 GHz on the downlink and
28.35 - 28.6 GHz, 29.25 – 29.5 GHz on the uplink.
In the band 18.3 – 18.8 GHz, which is shared with the Fixed Service, the regulatory flux
density limits as outlined in Table S21-4 of the Radio Regulations will not be exceeded. In
the sub-band of 18.6 – 18.8 GHz, which is shared with the Space Research and Earth
Exploration Satellite services, the additional limits of Article S21.16.2 will not be
exceeded.
After it is awarded the Ka-band licence at 118.7° WL, Telesat will begin operator-to-
operator discussions, and support bilateral discussions undertaken by Industry Canada, in
order to successfully coordinate its proposed satellite. Telesat notes that there have been a
number of ITU filings within the coordination arc of 118.7° WL, by the administration of
the United States (U.S.), and by Intelsat. The only other domestic Ka-band system within
the coordination arc of 118.7° WL is also operated by Telesat.
As outlined in Section 2.5.3.1, Schedule , Telesat will ensure that the satellite program is
managed so that the satellite is in service prior to May 14, 2005, consistent with the latest
in-service date of the CANSAT-KA-5 filing. In fact, Telesat will drive the schedule so that
the in-service date will occur by the end of the first quarter of 2005. Telesat also notes that
portions of the Ka-band that it proposes to use are covered by the filing CANSAT-KA-5X,
which was received by the ITU-BR on February 16, 2000. The in-service date for
CANSAT-KA-5X, as published by the ITU, is June 30, 2004. Telesat will work closely
with Industry Canada in developing a strategy to protect access to all relevant portions of
the Ka-band at the 118.7º WL orbital position.
1 Telesat notes a typographical error in the table contained within Section 5.2 of the Call for Applications. Theupper limit for the Ka service downlink should be 20.2 GHz, and not 20.3 GHz.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 2-25 March 15, 2001
The gateway earth stations, which operate in frequency bands that are shared on a
co-primary basis with other services, will be frequency coordinated in accordance with
Industry Canada’s Procedure for the Submission of Applications to License Fixed Earth
Stations and to Approve the Use of Foreign Fixed Satellite Service (FSS) Satellites in
Canada (CPC-2-6-01). The user terminals will operate in bands that are allocated on a
primary basis only to the FSS and Mobile Satellite Services.
Telesat’s 30 years of proven technical excellence in satellite design, procurement and
satellite operation make it the most experienced domestic satellite operator in the world.
Telesat is the only Canadian entity with the in-house expertise and capability to developand operate the proposed satellite network at the 118.7° WL position within the schedule
constraints.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-1 March 15, 2001
3.0 BENEFITS TO CANADA
Telesat has a long-standing tradition of delivering on its commitments to its customers, its
shareholders and to Canada. Telesat’s proposed Ka-band satellite is a uniquely Canadian
solution to the challenges arising from the new information-based economy. Telesat’s
proposed solution will enable high-speed connectivity to all Canadians, regardless of
location. It will be the vehicle to deliver innovative, broadband satellite services to foster
economic growth and improve the standard of living of individuals and the quality of life in
communities throughout the country. Telesat’s Ka-band satellite solution takes into
account where Canadians live, and is designed to provide broadband services to those areas
that will not otherwise be served adequately, if at all, by terrestrial means.
It is estimated that 15-20% of Canadians will not have access to terrestrial broadband
services, because they are outside the urban corridors that are well-served by fibre, Digital
Subscriber Loop (DSL), and cable. A comparable percentage of Canadian public and
private institutions will also lack such access. Telesat’s Ka-band satellite design has been
developed to provide services specifically to those non-urban areas of Canada. The
Canadian households that will benefit most from Telesat’s Ka-band satellite offering are
identified as predominately rural in Figure 3.1. The geographic location of these non-urban
regions is illustrated in Figure 3.2.
Figure 3.1 Rural vs. Urban Households
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-2 March 15, 2001
Figure 3.2 Predominantly Rural Regions
“STEM~Net has established a working relation with Telesat beginningwith the Internet for Schools project sponsored by Industry Canada.Newfoundland and Labrador has a small population spread over a largegeographic area and the majority of our schools are rural in nature.Except for a few cities and towns along the Trans Canada corridor, theonly connection to the Internet is via dial-up modem. Approximately170 (of 345) schools are currently using the DirecPC system, which is thelargest per capita installation in Canada. Since the inception of thisprogram, Telesat has assisted us in the setup and deployment…
STEM~Net has also been involved with Telesat since 1999 in a specialCanarie Satellite Caching Project to test the applicability of satellitedelivered caching to rural schools. Along with several other partners,Telesat has taken the initiative to determine if this system can improve theeffective bandwidth to schools whose only access to the Internet, in thisprovince, is through the DirecPC system.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-3 March 15, 2001
Again Telesat, and in particular Mr. Fred Markhauser, the project leader,have shown a high degree of professionalism, innovation and support inthis project. Satellite technology will play a significant role in the ruralparts of our province for the foreseeable future.”
Frank Shapleigh, Professional Development OfficerSTEM~Net
February 24, 2001
“IDC is currently working with Telesat to develop an efficient approach toproviding high speed Internet to schools and institutions across thecountry.”
Ron Clifton, President and CEOInternational Datacasting Corporation
February 26, 2001
Telesat’s proposed solution will help to overcome the digital divide in Canada and will
advance the government’s objective of making Canada the world’s most connected
nation. Telesat is confident that no other company can offer Canada and all of its
citizens the substantial benefits proposed by Telesat’s Ka-band satellite plan for the
118.7° WL orbital position.
3.1 BRIDGING THE DIGITAL DIVIDE
“The growing digital divide between Nunavut and the rest of Canada can
be closed, if we successfully meet three principal challenges:
1. Satellite Technology: Cost of Access, and Affordability of Use
2. Value and Benefit of Connectivity
3. Literacy: Creating a Bridge to the Information Culture
In Nunavut, guaranteed bandwidth costs $1704 per month in 64K
increments. At this rate, an equivalent Bell Canada ADSL connection in
the South would cost more than $25,000 per month.”
Preliminary Report to the National Broadband Task Force
Government of Nunavut
February 9, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-4 March 15, 2001
Telesat’s proposed Ka-band satellite is uniquely Canadian. Its entire payload and coverage
footprint is dedicated to serving Canada. It is specifically designed to bridge distances and
improve the quality of services and information flow. Telesat’s proposed Ka-band satellite
will bring the benefits of better services, new features and cost-effective broadband
connectivity to all Canadians and, in particular, to Canadians in remote, underserved areas,
including the North.
Specifically, Telesat’s Ka-band proposal will:
• enable end-to-end transmission of broadband satellite services to remote areas including
Canada’s North at the lowest possible price per user;
• provide research and development opportunities to the public and private sector entitiesthat will provide a strong foundation for the continued growth of the Canadian satellite
industry in decades to come;
• provide to public institutions access to Ka-band satellite capacity to advance thegovernment’s initiatives regarding its Connecting Canadians initiative and Smart
Communities Program.
Building on its numerous successes in serving remote regions of Canada and the North,
Telesat’s Ka-band satellite will enhance current programs and pilot projects. New
capabilities and features will make possible the delivery of more and better on-line services,
such as: distant and continuing education; emergency services; and citizen participation in
community, provincial or national events. In doing so, “communities that take advantage of
these new technologies will create jobs and economic growth, as well as improve the overall
quality of life of their citizens.”2
“As we continue to reach out to the Far North to offer opportunities forpeople to improve their lives, we know how important satellite technologywill be in this process. Telesat’s current and past contributions to ournetwork’s aims have shown us that they are excellent partners in findinginnovative solutions to the challenges of serving the North…”
Maxim Jean-Louis, President & CEOContact North
January 18, 2001
2 Government of Canada, Connecting Canadians – Smart Communities: Creating a Sum that is Greater thanits Parts, April 2000.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-5 March 15, 2001
3.2 BENEFITS TO CANADIAN STAKEHOLDERS
“Telesat is a Canadian success story in the international satellite industry.Through its initiative, technological advances and commitment toconsistently delivering superior satellite services to all parts of Canada,Telesat is the Canadian broadcasters’ carrier of choice. Today, Telesat’ssatellites deliver virtually all of Canada’s programming to networks,cable-headends and DTH consumers across the country.
…[I]t is the CAB’s view that with Telesat’s long tradition of innovative andhigh quality service, price competitiveness, along with its substantialsatellite and ground infrastructure, are difficult to match in NorthAmerica. In addition, with so much of Canadian programming alreadydelivered on Telesat’s satellites, licensing another company to operate asatellite at the 118.7º WL location is not feasible given the relative smallsize of Canada’s market.”
Michael McCabe, President and CEOCanadian Association of Broadcasters
March 2, 2001
Today, over 95% of the capacity of Telesat’s fleet is dedicated to Canadian-based
customers. In the future, while Telesat will extend the scope of its business to new
geographic markets, the Canadian market will always remain the core business of the
Company.
Telesat has always been mindful of ensuring that its business direction provides benefits to
all stakeholders in the Canadian satellite communications industry. Telesat’s plans for the
use of the 118.7º WL orbital position will further benefit these diverse groups.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-6 March 15, 2001
The fundamentals of Telesat’s proposed Ka-band satellite program are:
• to deliver high-quality, affordable, broadband services to all parts of Canada;
• to establish a co-operative venture between Canadian public and private
stakeholders to ensure that Canada garners the direct and indirect economic
benefits of the new knowledge-based economy, using the latest in broadband
satellite technologies; and
• to provide the Canadian satellite industry with new avenues to export its skills
and products to markets around the world.
Throughout its history, Telesat has contributed to the achievement of a multitude of public
policy objectives through co-operative efforts with the government and by working closely
with government agencies. Telesat’s proposed Ka-band satellite provides a vehicle to
address the challenges of the increasing service isolation and the disenfranchisement from
the information economy that is experienced by Canadians living in rural and northern
communities. Telesat’s Ka-band satellite program offers solutions to these challenges by
creating partnerships between private and public institutions to develop and implement
exciting new broadband services to communities throughout Canada.
Telesat is pleased that an overwhelming number of key stakeholders in the Canadian
satellite industry have expressed their unequivocal support of the Company’s application.
These letters are provided in a separately-bound volume included with this application.
Telesat takes particular pride in the fact that much of this tremendous support comes from
the Company’s customers. It is gratifying and illustrative of the high quality of Telesat
services that Canadian satellite users who can now choose from several service providers
(including both foreign satellite operators authorized to operate in Canada and terrestrial
carriers), continue to select Telesat as their carrier of choice.
For Canadian satellite subsystem and equipment manufacturers, Telesat’s commitment to
use Canadian-developed components and equipment in its infrastructure will continue, as it
develops the 118.7° WL orbital position. With the award of the Ka-band spectrum licence
at 118.7° WL, Telesat will provide Canadian equipment suppliers with additional
opportunities to apply their skills and expertise in developing products for the Telesat
program, as well as for export opportunities to satellite markets around the world.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-7 March 15, 2001
“SpaceBridge believes that Telesat’s vision for the development of the118.7° orbital position provides the best opportunity to serve all Canadians.Furthermore, the technical innovations contained in their proposal willprovide the Canadian space industry the opportunity to continue to developleading-edge products for both the Canadian and export market, therebyensuring that this industry continues to thrive and grow. By awarding the118.7° licences to an established Canadian satellite operator, Telesat’sleading position will be strengthened in the North American satellitemarket, along with those of Canadian business such as SpaceBridge, whohave worked together with Telesat in the development of expertise insatellite communications that is recognized worldwide.”
Avedis Menechian, President and CEOSpaceBridge
February 19, 2001
With the award to Telesat of the Ka-band satellite licence at 118.7° WL, the Company
will continue to work with these stakeholders in the Canadian satellite industry to foster
a strong Canadian industry capable of providing leading-edge technologies and services
to markets throughout the Americas, and around the world.
3.3 BENEFITS TO FIRST NATIONS COMMUNITIES
“In Nunavut we rely completely on satellite technology within the Territory,and for contact with the rest of the planet…To fully participate with allCanadians in the e-World created by high-speed Internet access, we inNunavut need a new business model that addresses the high operating costof satellite-based systems…The business models used in the rest of Canadato support the development of high-speed Internet services simply cannot beapplied to Nunavut.”
Preliminary Report to the National Broadband Task ForceGovernment of Nunavut
February 9, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-8 March 15, 2001
Approximately 4.5% of Canada’s population are aboriginal. The birth rate for aboriginal
Canadians is double that of non-aboriginals. Canada’s aboriginal population is distributed
across the country, with a large number living in rural and remote areas, and some living in
Canada’s most remote settlements.
When compared to other demographic groups, the desperate reality of aboriginal life in
Canada is reflected in:
• lower life expectancies;
• higher suicide rates;
• lower mean incomes; and
• higher rates of dependence on welfare.
While telecommunications does not provide a panacea for the challenges faced by
Canada’s aboriginals, a widening digital divide will further alienate this segment of society
and hinder its development.
Telesat’s firm commitment to delivering communications services to Canada’s First
Nations communities has been in place from Telesat’s first day of commercial operation in
1973. Telesat’s Ka-band satellite at the 118.7° WL orbital position will continue this
tradition of affordable service delivery using partnership and innovation to help improve
the quality of life in Canada’s First Nations communities.
“We missed the Industrial Revolution. I don’t think we want to miss theInformation Highway.”
Matthew Coon ComeQuoted by Shirley Serafini, Deputy Minister
Indian and Northern Affairs Canadain
Connecting Aboriginal and Northern CanadiansPresentation to the National Broadband Task Force
March 7, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-9 March 15, 2001
In a recent initiative, Telesat partnered with Keewaytinook Okimakanak in a research and
development initiative to provide a variety of high-speed data applications in the Fort
Severn First Nation. These telecommunications applications will help to address social and
economic needs in other First Nations communities.
Telesat is uniquely positioned to deliver on its promise to enhance services for Canada’s
aboriginals because of its long-standing involvement in the North and among First Nations
peoples. Telesat is the only satellite service provider with extensive satellite infrastructure
in Canada’s remote communities. Because of its unique position, only Telesat can deliver
the multitude of benefits, derived from satellite communications, that the First Nations are
seeking.
“FNIHB strongly supports Telesat’s application in response to Industry Canada’sCall for Applications for the 118.7 degree orbital position. We encourage Telesatto continue to provide sustainable telecommunications solutions to rural andremote areas across Canada. We recognize that satellite communications are theonly option available to many remote First Nations and Inuit communities whomay wish to implement telehealth in the future. Providing telecommunicationsservices to these communities requires innovative technological development andflexible procurement mechanisms. Telesat has demonstrated to FNIHB itscommitment to respond to both challenges.”
Ernie Dal Grande, Telehealth Program ManagerFirst Nations and Inuit Health Branch (FNIHB), Health Canada
January 23, 2001
3.4 BENEFIT TO PUBLIC INSTITUTIONS
Telesat’s proposed Ka-band satellite for the 118.7° WL orbital position will provide distinct
benefits to further the government’s initiatives on Connectedness. Telesat proposes to use
a portion of the Ka-band payload to further develop and enhance the Anik E trial programs
which Telesat has been implementing in close co-operation with the Communications
Research Centre, the Canadian Space Agency, and other public agencies and institutions.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-10 March 15, 2001
These programs are discussed in further detail in Volume 1, Section 5.5 of this application.
The continuation and expansion of these programs are critical to the government’s
Connectedness Agenda. They will also provide the ability for all Canadians, regardless of
location, to be active participants in Canada’s knowledge-based economy.
The launch of Anik F2 in late 2002 will start the next phase of broadband connectivity for
remote public institutions. It is estimated that over 1800 public institutions will begin
receiving the benefits of broadband connectivity via Anik F2. Telesat has proposed a small
Ka-band payload as part of its C and Ku-band satellite to be launched into the 118.7º WL
orbital position in 2003. This payload will provide further opportunities for service
provision and back-up to remote public institutions.
Telesat’s Ka-band satellite at the 118.7º WL orbital position will complete the task. It will
facilitate development of these services, allowing the government to move from the trial
and pilot-program phase, carried out on the Anik E and Anik F2 satellites, to the more
extensive rollout of multimedia services to every remote household and public institution,
beginning in early 2005.
“Canada must ensure it has a high-speed, high-growth economy and animproved quality of life. Access to high speed broadband networks willtranslate into strong investments across Canada and opportunities for allCanadians…It will address the digital divide in this country that separatesurban from rural and remote communities. These small communitieswhich stand to benefit the most from high-speed broadband services maybe the last to have these services available to them without governmentinvolvement. Access to high-speed broadband will provide the foundationfor improved services such as distance learning and telehealth as well asprovide small business with access to broader markets.”
Government of Canada Announces Commitment to BringingHigh-Speed Broadband Internet Services to all Canadian Communities
Press Release, Industry CanadaOctober 16, 2000
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-11 March 15, 2001
Telesat has conducted an analysis of the health and educational institutions in rural and
remote communities across Canada. Figure 3.3 outlines the large number of schools,
libraries, hospitals and clinics which are located in predominately rural areas.
Figure 3.3 Rural Vs. Urban Institutions
Telesat’s Ka-band satellite solution provides the capability to serve Canadian institutions
regardless of their location in Canada. Telesat commits to provide a minimum of 2% of
the space segment revenues it will realize over the life of the satellite in order to support
broadband access for Canadian public institutions.
“We would welcome the granting of the requested orbital position at118.7 degrees West Longitude to enable Telesat to validate and later deployadvanced broadband satellite-based services. These services will ensurethat Canada remains a leader in communication services and it willstrengthen Canada’s position as the most connected nation in the world.”
Paul Wilker, Executive DirectorSmartCapital, OCRI
January 19, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-12 March 15, 2001
Telesat’s Ka-band satellite at 118.7° WL will have a Canada-only service footprint.Telesat believes that this satellite will be the principal vehicle to deliver high-speedbroadband services to remote and underserved areas, including Canada’s North.Telesat’s Ka-band satellite solution for the 118.7° WL position will provide the means tomeet the immediate needs of these communities. It will also provide the platform forCanadians in these remote and northern areas to have access to new broadbandapplications as they are developed in the future.
3.5 BENEFIT TO CANADIAN MANUFACTURERS
Since the inception of the Company, all of Telesat’s satellite procurements have, to themaximum extent possible and commercially feasible, endeavoured to incorporate Canadian
expertise and technology into the design and construction of its satellites.
By working closely with Canadian suppliers, Telesat has contributed substantially to thedevelopment of enhanced technological capabilities within the Canadian space industry.
The Anik F1, Anik F2 and Nimiq programs have resulted in over $250 million of direct
economic benefit to Canadian industry, contributing substantially to the development ofworld-leading technical capabilities.
The Ka-band satellite program for the 118.7° WL orbital position will be conducted in
cooperation with COM DEV and EMS. In addition to working jointly with thesecompanies in developing the final design, Telesat will commit to the following provisions
during the procurement of the Ka-band satellite for the 118.7º WL orbital position:
• Telesat will advise prospective bidders in its RFP process that Canadian content will be
an evaluation criterion. The prospective prime contractor will be required to state an
amount of Canadian content for the program;
• The type of Canadian content will be broken out into four elements:
i) design and engineering labour; ii) manufacturing labour; iii) materials and components; and iv) other.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-13 March 15, 2001
• The contractor will be required to keep accounts and records so that an audit could be
completed on the Canadian content achieved at the end of the program;
• Should the audit determine that the contractor has failed to achieve the minimumCanadian content agreed to under the contract, the contract price would be reduced by
the amount of the Canadian content not achieved;
• In addition to the committed Canadian content for the 118.7° WL program, thecontractor will be required to enter into valid and binding contracts with Canadian
sources for the procurement of goods and services pertaining to satellite
communications-related work for markets other than Canada. The contract will requirethe contractor to state the value of contracts that it would commit to within a set period
of time from the contract signing. Again, if the contractor fails to achieve this
commitment within a specified period, Telesat shall be rebated the difference betweenthe committed and actual Canadian-content values. Reports from the contractor will be
required to determine whether this commitment is being attained.
Telesat’s plan also provides the opportunity to ensure that Canadian ground segment
suppliers obtain a head-start on foreign competitors by first supplying the Canadian market.
Telesat has actively promoted and supported such initiatives in the past and views its
Ka-band plan as a natural evolution of this work. The beneficial results of close
cooperation between Telesat, EMS and the Canadian Space Agency are outlined in
Appendix 4, where the Digital Video Broadcast Return Channel System (DVB-RCS)
example is described.
Telesat has a strong track record of working well with Canadian suppliers and satellite
manufacturers to realize a good representation of Canadian content in each satellite
program, and has received the full and unequivocal endorsement of leading Canadian
companies in the space systems and subsystems manufacturing sector.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-14 March 15, 2001
“Telesat has a track record of delivering on its commitments to incorporateCanadian technology into its satellite systems. In COM DEV’s case, wehave supplied hardware on every Telesat satellite since 1979. Even moreimportantly, this has included the ‘first flight’ of several new technologiesdeveloped by COM DEV. In the highly conservative global space industry,the opportunity to fly newly developed and qualified space technologies isextremely critical – without the flight opportunity provided by Telesat,COM DEV would not have been able to secure follow on sales from theglobal prime contractors. To date, COM DEV has provided more than$40M of hardware on Telesat programs and has secured more than $300Mof follow on sales of this technology on international satellite programs.These sales have contributed significantly to COM DEV building a $100Mspace business in Canada which currently employs more than 500employees in Cambridge, Ontario.”
John Keating, PresidentCOM DEV Space Group
March 5, 2001
“EMS has benefited from Canadian content requirements and/or directand indirect offsets imposed by Telesat as part of their procurementprocess. EMS has been able to exploit its success on Canadian programsand has evolved over the years, including an investment in DVB-RCSpiloted in Europe, that has resulted in an excellent international reputationdemonstrated by continued and expanding export sales. In order tomaintain this reputation and for continued growth of Canada’s SpaceIndustries, Canada would benefit with having a strong and sizableCanadian satellite service operator that, together with associated Canadianindustry, could compete effectively with the large U.S. corporations.”
Gerry Bush, President, Space and Technology GroupEMS Technologies
March 1, 2001
The award of the 118.7° WL Ka-band licence to Telesat will provide yet another
opportunity, through the procurement of the new satellite and related infrastructure, to
further develop Canadian skills and expertise, and to bolster export opportunities for
Canadian products.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-15 March 15, 2001
3.6 BENEFIT OF MEETING PUBLIC POLICY OBJECTIVES
Telesat’s proposal to develop the Ka-band spectrum at the 118.7° WL orbital location is
fully consistent with, and will further the achievement of, Canadian public policy
objectives. Since its inception in 1969, Telesat has continued to fulfill its commitments in
terms of telecommunications and broadcasting policy, and each successive generation of
satellite has brought new and enhanced services, capabilities, and coverage to all parts of
Canada. Telesat’s plan for the Ka-band satellite at the 118.7° WL orbital position will
expand on this heritage, bringing true broadband connectivity – increasingly a requirement
for participation in 21st century society – to every Canadian household and public
institution.
Telecommunications Policy Objectives
Throughout Telesat’s history, the Company has worked to ensure that Canadians had
access to a satellite system that met Canadian telecommunications public policy objectives.
Telesat’s satellite infrastructure:
• strengthens the social and economic fabric of Canada and all of its regions;
• provides ubiquitous coverage that offers reliable and high-quality services ataffordable rates, equally accessible in urban and rural areas in all regions of Canada;
• responds to the economic and social requirements of telecommunications users bymaking available new services on a national basis; and
• fosters a competitive environment which increasingly relies on market forces toreduce the need for regulation.
Telesat’s Ka-band satellite for the 118.7° WL position will result in direct benefits for
Canadian manufacturers involved in supplying satellite components, and create
highly-skilled employment in Canada. These factors serve to promote Canada’s
telecommunications public policy objectives by:
• enhancing the competitiveness and efficiency of Canadian telecommunications
operators and manufacturers, both nationally and internationally;
• promoting the use of Canadian facilities for services within Canada and to points
outside of Canada;
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 3-16 March 15, 2001
• fostering the ownership of telecommunications facilities by Canadians; and
• stimulating research and development within Canada and encouraging innovation in
the telecommunications field.
The award of the licence for the Ka-band spectrum at the 118.7° WL position should
carry with it not only an obligation to deliver high-quality, innovative satellite services
throughout Canada; but also a commitment to real and measurable benefits to Canada.
Telesat is confident that no other company or satellite operator can match the scale and
scope of the identified benefits to Canada, its citizens, its business enterprises and the
Canadian satellite industry.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-1 March 15, 2001
4.0 BUSINESS SOLUTION
Telesat’s services provide the fundamental underpinnings for a wide range of industries
throughout Canada. A detailed overview of Telesat’s business is provided in Volume 1,
Section 2.3, of this application. The following section is intended to provide a perspective
of the key areas of Telesat’s business in terms of revenues and satellite utilization. This
perspective provides the context for Telesat’s Ka-band plan for the 118.7° WL orbital
position. It also elaborates on the trends and competitive forces emerging in the
North American Ka-band satellite market and their implications for Telesat’s future.
4.1 TELESAT MARKETS
Telesat’s primary market focus has been, and continues to be, Canada. Service
development, Research and Development (R&D), network operations and support, have all
been designed and implemented with Canadian needs in mind.
Telesat’s aggregate revenues have grown by over 25 percent in the past five years.
Figure 4.1 illustrates Telesat’s business growth by its main revenue components.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
1996 1997 1998 1999 2000
Broadcast
Business, Industry &GovtCarrier
International Business
$M CDN
Figure 4.1 Annual Revenues by Business Segment
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-2 March 15, 2001
The manner in which Telesat has achieved significant growth in its key business segments
is remarkable. It must be emphasized that during the five-year period 1996-2000, Telesat’s
satellite infrastructure remained almost constant, with Nimiq being added only in the last
half of 1999. Telesat experienced revenue growth in the broadcast sector, as well as in the
business and government sector, despite operating its fleet at nearly full utilization. This
growth occurred largely as a result of Telesat’s business initiative and technical creativity.
For example, Telesat fostered the introduction of digital video compression (DVC) to the
Canadian broadcast industry during the early to mid-1990’s. By the end of that decade,
Telesat had assisted the vast majority of Canadian broadcasters to convert to DVC
technology, thereby freeing up much sought-after satellite capacity. This capacity, in turn,
was then used by new Canadian programming services licensed by the Canadian
Radio television and Telecommunications Commission (CRTC), and to establish Direct--
to-Home television services in Canada. In addition, some of the newly-available capacity
provided the means to make significant inroads into the business VSAT (very small
aperture terminal) market, both in Canada and throughout North America.
An underlying business assumption by Telesat is that the Company’s core market (Canada)
will continue to grow, and Telesat will continue to support this growth through its R&D
and business development activities. To remain a viable competitor in the Americas,
Telesat plans to augment its current business with new services and applications, as well as
with entry into new markets. Telesat’s market expansion strategy is already underway
using the capacity on Anik F1 and F2, which will extend Telesat’s reach both
geographically, as well as into new service markets such as advanced multimedia services.
Telesat’s Ka-band satellite at 118.7° WL will complement this strategy of growth and
expansion.
Telesat’s proposal for the Ka-band 118.7° WL orbital position has been built upon the
Company’s 30 years of extensive knowledge of the satellite business, its invaluable
insights into Canadian satellite users and its extraordinary experience of operating in all
parts of Canada. This understanding of the Canadian market is unmatched by any other
company. Equally unmatched will be Telesat’s ability to deliver to all existing and future
Canadian satellite users a comprehensive and seamless Canadian satellite system.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-3 March 15, 2001
4.2 TELESAT TRANSPONDER SUPPLY AND DEMAND
Telesat has four geostationary satellites in operation today – Anik E1, Anik E2, Nimiq and
Anik F1. Anik F2 is under construction and Nimiq 2 is expected to be under construction
shortly. Figure 4.2 identifies these satellites and their orbital positions.
Figure 4.2 Canadian Orbital Positions and Satellites
In terms of utilization, it should be noted that available capacity on the two Anik E’s had
been reduced due to in-orbit satellite anomalies. These two satellites have been operating
at nearly 100 percent of this reduced capacity for several years. This level of utilization is
expected to remain through to the end of the Anik E service lives, in 2003.
While not directly related to this application, Telesat’s only Direct Broadcast Satellite
(DBS), Nimiq, is also fully subscribed. Telesat is finalizing plans for Nimiq 2 to provide
back-up/restoration capability to Nimiq, as well as to make additional DBS capacity
available to Canadians. This new capacity will be brought on stream as early as possible to
maintain and grow the DBS services being provided to Canadian subscribers.
With Anik F1, Telesat has launched and is operating one of the largest geostationary
satellites ever constructed. Even as Anik F1 began its commercial operations in
February 2001, little excess capacity was available. Virtually all of the capacity on that
satellite has been contracted by way of several long-term agreements with Canadian
enterprises.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-4 March 15, 2001
Telesat has Anik F2 under construction to replace Anik E2 and to augment its overall
capacity. It is anticipated that when Anik F2 begins commercial service in 2003, 75% to
80% of its capacity will be in service. The Canadian Ka-band payload on Anik F2 offers a
unique opportunity for the development of early-entry multimedia services for government
and business enterprises across Canada. This Ka-band payload and associated ground
infrastructure is being built in co-operation with a wide cross-section of Canadian industry
and in partnership with the CSA and the CRC.
Telesat’s initial application for the 118.7º WL orbital position was made to Industry
Canada in October 1999. Telesat, at that time, forecasted a severe shortage of FSS capacity
in the Canadian market for new service development and back-up. Since that time, the
CRTC has licensed over 260 new broadcasting services, Direct-to-Home (DTH) service
providers need additional capacity for expansion, and new broadband services need
bandwidth. Telesat’s efforts to design, build, and offer broadband services to Canadian
households and public institutions require the additional spectrum that is the subject of this
application.
Operating in the world’s most dynamic and competitive satellite market, Telesat mustcontinue to foster new technological advances. Telesat’s Ka-band satellite will provideinnovative satellite solutions and valuable capacity to the Canadian market and, inparticular, to Canadians living in underserved and remote areas of the country.
Telesat’s long tradition of serving Canadians from coast-to-coast-to-coast is reflected inthe overwhelming support of Telesat’s application for the 118.7° WL orbital positionfrom Canadian satellite users and, specifically, from those in the North and remote partsof Canada. Evidence of this support is provided in a separate volume of this applicationentitled ‘Letters of Support’.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-5 March 15, 2001
4.3 THE KA-BAND SATELLITE MARKET
4.3.1 Global Trends and North American Market
The broadband revolution continues to take hold in such developed markets as
North America and Europe. The size of the global broadband satellite market is estimated
to be $400 million U.S. in 2001 and growing approximately 100 percent annually to year
2007, where broadband satellite revenues are expected to reach $18 billion U.S.3 However,
the initial flurry of announcements, speculation and business ventures surrounding the
emerging broadband market has subsided. Cooler business heads are now revising plans
for the roll-out of broadband satellite systems. Recent announcements by leading operators
in the market indicate a slowing down in the deployment of Ka-band systems.4 This may
be attributed to the risks present in their business plans and the use of an unproven
technology. Telesat remains committed to developing a realistic business plan so that
Canada may enjoy the benefits of Ka-band satellite services.
Growth is driven by both the number of Internet access users and by the information rate
required by each user. Pioneer Consulting, in a March 2000 report, predicted that the
average information rate in 2005 will exceed 1 Mbps. Satellite ubiquity – the ability to
deliver advanced multimedia services and data at very high data rates to an entire
continent – make broadband satellites an efficient and affordable communications platform.
3 Merrill Lynch, Global Satellite Marketplace 2001 , February 2001, Page 163.
4 “Notably, 43 months after licensing, the only consumer-centric Ka-band system funded and building isWildBlue, a new entrant…”-John Hane, Vice President Business Development, Pegasus Development Corp., quoted in Via SatelliteJanuary 2001“SES Puts Brakes on Broadband Satellite ServiceSES has postponed by nearly a year its next generation satellite system, saying early predictions of a vast newmarket for satellite services were too optimistic…[T]here are too many questions about consumer demand tomove too quickly…”Satellite News, February 26, 2001“Loral Drops Proposal for Satellite SystemThe Company has scrapped plans for a broadband system that would transmit high data rate content directly toconsumers in the Ka-band portion of the radio spectrum.”Space News, February 5, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-6 March 15, 2001
Depending on the satellite operator, the immediate target for new satellite broadband
service offerings will be either the consumer or enterprise. On the heels of the great
successes of DBS in North America, the consumer segment is expected to drive the satellite
broadband business in the initial years, as service providers deliver higher speed, affordable
access to the Internet, interactivity and new multimedia services. This is particularly true
as the terrestrial ‘last-mile’ bottlenecks are bypassed using satellite. Over the next decade,
satellite broadband services used by enterprises can be expected to surpass the consumer
demand. Merrill Lynch has forecast that by 2008, the global enterprise segment of the
market will bring in revenues of over $10 billion U.S. The ability of small and medium-
sized businesses and large multi-national corporations to take advantage of two-way,
high-speed data transmissions will drive the significant growth expected in satellite
broadband applications. Among those applications will be the migration of some of
today’s Ku-band VSAT networks to the Ka-band platform, especially as the current
Ku-band spectrum over North America becomes exhausted.
“Ku-band is already becoming quite crowded, and IP will consume a lot ofbandwidth. The rise of IP data delivered over satellite will outstrip theKu-band bandwidth available.”
Toby Farrand, President & CEO
Broadlogic Network Technologiesquoted in Via Satellite January 2001
The use of Ka-band spot beams and the ability to reuse the frequency (thus expanding
available satellite capacity) make the Ka-band the medium of choice for future multimedia
services, except in applications where high link availabilities are essential.
“For a true connectivity solution via satellite, however, we believe theKa-band is the only logical choice.”
Broadband Over Satellite
C.E.Unterberg, Towbin
October 2000
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-7 March 15, 2001
4.3.2 The Competitive Landscape
All the dominant satellite operators in the North American FSS satellite market have plans
to launch Ka-band satellites. All intend to pursue this market segment either on their own
or in partnership with other players. Figure 4.3 compares Telesat’s 1999 FSS revenues
with those of the current dominant satellite operators in North America, all of whom are
expected to be entrants into the Ka-band market in North America.
0 200 400 600 800 1000 1200
Intelsat
PanamSat
SES Astra
Eutelsat
Loral
GE Americom
Telesat
New Skies
*1998 revenues*
($US M) Sources: Euroconsult, Satellite Communications & Broadcasting Market Survey, 2000 Edition New Skies 1999 Annual Report Loral Space & Communications Annual Segment Analysis, Merrill Lynch, July 2000
Figure 4.3 Revenue Comparison of Satellite Operators (1999- $M US)
Beginning in 1994, Telesat prepared the ITU filings that are the basis for Canada’s Ka-band
spectrum at five orbital locations, including 118.7º WL. The Telesat team, in cooperation
with Industry Canada, has been diligent in maintaining Canada’s priority with regards to
these filings. Anik F2, to be in service at 111.1º WL by early 2003, will be one of the very
first commercial Ka-band systems in North America. Telesat has also proposed a small
Ka-band payload on its C and Ku-band satellite to be in service at 118.7º WL by late 2003.
This payload will provide early-entry service opportunities and ensure the maintenance of
Canada’s rights to Ka-band spectrum at 118.7º WL.
Figure 4.4 provides a snapshot of the Ka-band ITU filings in the North American arc.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-8 March 15, 2001
Figure 4.4 Ka-band ITU Filings in the 80º to 130º WL Orbital Arc
For 30 years, Telesat has been successful and has established a key role in the global
satellite industry through innovation, effective use of spectrum resources and satellite
facilities created by made-in-Canada expertise. Telesat, by working in partnership with
Industry Canada at the ITU, and in coordination activities, has secured and developed
these raw materials for Canada. Although the Company is a small player, it has always
been an innovator, ready to take Canada to the next level of satellite telecommunications
and to compete with U.S. and European satellite operators.
The competitive dynamics of today’s global satellite market, coupled with Canada’s vast
size, require Canada to act with vision and purpose to ensure a strong Canadian
presence. That presence can be achieved only by fostering the development of a
comprehensive fleet of Canadian satellites to meet the diverse needs of Canadians today
and in the future. While the Ka-band 118.7° WL orbital position cannot, in itself, sustain
a strong Canadian presence in North America, this resource is critical to building the
Canadian satellite fleet required for the future. By augmenting its current satellite
infrastructure with the 118.7° WL Ka-band spectrum, Telesat will be able to:
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-9 March 15, 2001
• maintain Canada’s strong position in the satellite industry;• foster the implementation of the Government’s Connectedness and Innovation
initiatives;• ensure that existing and future Canadian services have capacity for expansion;• ensure that valuable Ka-band spectrum remains in Canadian hands for use by
Canadians; and• safeguard highly skilled employment in Canada and foster export opportunities.
4.3.2 The Canadian Broadband Satellite Market
The Connectedness Agenda has put Canada in a leadership position regarding Internet
access. Canada’s leadership results from strong competitive market forces. It is, however,
clear that market forces are not affording the same level of access to services for those in
low-density rural and remote areas, as is available in high-density, urban areas.
Telesat believes that high-speed access in low-density areas must be ubiquitous and as
affordable as that available in urban areas. If Canada is to maintain and build on its
leadership position, it is essential that broadband access be available to all Canadians.
Telesat’s solution addresses this issue and proposes a means to close the ‘digital divide’.
Telesat’s Ka-band satellite, proposed for the 118.7° WL orbital position, is uniquely suited
for Canadian consumers and public institutions. It provides satellite-based broadband
solutions ideal for Canada’s northern and remote areas. Telesat has conducted an extensive
market analysis of the Canadian satellite broadband market to determine the regions of the
country that could benefit from a Ka-band satellite system. It is clear from the analysis of
both households and institutions that 15 – 20% of the Canadian market requires an
innovative satellite solution. Telesat’s solution addresses this need with a uniquely
Canadian approach to provide broadband access to all Canadians. The highlights of this
analysis are provided in Appendix 3.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-10 March 15, 2001
4.4 BUSINESS ECONOMICS
Achieving the laudable objective of delivering to rural and remote Canada services that are
equivalent to the high-speed, high-quality broadband services offered in urban centres will
be possible only through partnerships involving industry and the government. Similar
partnerships in the past have tackled equally ambitious goals, and their successes have
benefitted Canadians. Telesat itself is an example of this Canadian approach. Telesat was
formed through a partnership between the federal government and the Canadian
telecommunications carriers. The initial capital provided by the government, and matched
by the carriers, was used to fund Canada’s satellite system.
The Anik B Ku-band program provides another example of a public/private partnership.
The Ku-band payload, then representing cutting-edge technology, was funded by the
Canadian government. This ensured that Canada operated the first Ku-band satellite in the
world, and paved the way for a variety of services now provided to Canadians in this
band – including DTH and VSAT services across Canada.
Telesat’s application for the Ka-band spectrum at the 118.7° WL orbital location provides
the vision that can enrich Canadian lives in the future, using the same type of partnership.
This partnership will involve the federal government, Telesat as network operator, key
Canadian players in the satellite subsystem and earth segment manufacturing industry, and
a number of service providers who would retail the service and provide customer care.
Telesat expects that a number of the service providers would be aboriginal or
community-based. Telesat’s plan provides the ways and means to deliver high-speed
broadband services to all Canadians in rural and remote Canada, as envisioned by the
government and the National Broadband Task Force. Telesat’s technical solution, as
presented in Section 2.0 of this Volume, provides an innovative approach to broadband
connectivity for all Canadians. Telesat’s business solution is flexible with respect to
building an economic model that makes sense for Canada. Only satellite has the potential
to ensure that all Canadians have broadband connectivity. Telesat is prepared to work with
the government to develop funding and pricing mechanisms that meet its connectedness
objectives.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-11 March 15, 2001
4.4.1 Capital Expenditures
Telesat has a realistic and cost-effective engineering approach to both the satellite and earth
segment design. Telesat's proposed satellite is intended to provide broadband access
throughout Canada with small, low-cost terminals.
The very small spot beams possible at Ka-band enable a high level of frequency reuse
which permits a high capacity system, thereby lowering the cost per bit. Telesat’s solution
proposes full coverage of Canada with 27 small spot beams, two half-Canada beams and
one overlaid national beam. The spectrum will be fully reused over nine independent star
networks, each with its own gateway.
The Ka-band satellite design builds on the heritage of the Anik F2 Ka-band payload. This
experience, coupled with Telesat’s well-established system for spacecraft procurement and
involvement in satellite programs around the world, cannot be replicated by others.
The proposed satellite’s requirements can be satisfied with the use of a medium-size
spacecraft. The estimated payload mass for the satellite is approximately 900 kg. All
major manufacturers have at least one bus that can carry the proposed Ka-band payload.
Further detail of the satellite design is presented in Section 2.0 of this Volume.
The spot beam design requires a gateway infrastructure to take advantage of the frequency
reuse of the satellite. Telesat’s plan for Ka-band at 118.7° WL requires the implementation
of nine gateways. It is proposed to use existing Canadian teleports to house some of the
gateways, and to construct new points of presence in Canada for the remaining gateways.
The gateways are the interface points between the satellite network and the terrestrial
broadband networks, enabling seamless communications support to the end users.
Telesat has a high level of confidence in the accuracy of its capital cost estimates, as a
result of its own 13 successful satellite programs and its consulting experience on over
68 programs around the world. The company believes that the cost estimates shown in
Table 4-1 for the Ka-band satellite at 118.7° WL are both realistic and achievable:
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-12 March 15, 2001
Table 4-1 Capital Expenditure Estimates$millions (CDN)
Spacecraft $295Launch Service 145Launch Insurance 100TT&C Equipment 30
Total Space Segment $570Earth Segment 85
TOTAL $655
To the cost estimates of Table 4-1 must be added Telesat’s engineering and financing costs
on the satellite program, which are capitalized.
4.4.2 Operating Expense
Telesat’s 30 years of operating history allows it to accurately predict future operating costs
and control expenditures as they occur.
Operating expenses are driven by the operations cost of the satellite itself, which includessatellite control, and by earth segment operations and maintenance, traffic management,
international and domestic frequency coordination, licensing, traffic planning and risk
management. Other significant expenses include earth segment licensing, capital andincome taxes, marketing, and customer administration.
4.4.3 Revenues
The Canadian government has publicly announced its commitment to make Canada the
world’s most connected nation, particularly in the area of broadband access. Publicly-announced programs, such as Schoolnet, and broad policy initiatives, such as the National
Broadband Task Force, reinforce the need for high-quality broadband services accessible
throughout the country, regardless of geographic location. Telesat’s business solution aimsspecifically at meeting a service demand that cannot be met by other alternatives. Telesat
estimates that the majority of the Ka-band payload at 118.7° WL will ultimately be used to
provide end-to-end services to households and institutions in Canada that would otherwisenot have broadband access. The government’s objectives will not be met by a satellite
designed so that much of its capacity is required to serve the U.S. market.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-13 March 15, 2001
Given the capital and operating expenses of Telesat’s sophisticated Ka-band satellite, and
the gateways that are essential to serve rural and remote Canada, Telesat estimates that it
will need to generate service revenues of $16 - $17 M each month, over the life of the
satellite. The monthly service fee required per subscriber is highly dependent on the
number of subscribers. For example, with one million users on the system, subscribers
would need to pay approximately $16 per month for the high-speed broadband service to
meet the revenue requirement. With two million subscribers, the cost per subscriber would
drop to approximately $8 per month. With three million subscribers, the cost per
subscriber would drop to below $5.50 per month. Although these costs do not include the
purchase or installation of the user terminals by consumers or institutions, or Internet
Service Provider's (ISP) fees, it is clear that pricing comparable to that in urban areas is
achievable, given an adequate number of subscribers.
Telesat’s market analysis has quantified the expected Ka-band satellite market, comprised
of households and institutions in rural and remote areas of Canada. Further, Telesat has
developed an innovative satellite system design. The satellite system will deliver to these
households and institutions broadband services comparable to those available in urban
locations. Based on the capital and operating costs of the satellite system, a revenue
requirement has been calculated. It will not be possible for private enterprise to meet this
revenue requirement and charge a monthly fee to Canadian households and institutions that
is comparable to what Canadians in urban areas are paying.
Telesat’s business solution has the flexibility to consider a wide range of models for the
implementation of the Ka-band plan for Canada. One option would be for the government
to contribute capital funding to the program. The capital contribution would reduce the
service cost to the end user to levels that would enable the government to realize its
objective of providing Canadian households and institutions, no matter what their location
in this vast country, affordable broadband access.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-14 March 15, 2001
4.4.4 Financing Requirements
“Telesat’s legacy has been an important factor in earning the confidenceof the North American investment community.”
Xavier Guillard, Managing Director, Investment BankingNational Bank Financial
February 27, 2001
Satellite construction programs place significant demands on a company’s financial
resources. A Ka-band satellite program is expected to take 32 to 36 months to complete.
Program delays or unforeseen events can bring significant stress on the organization’s
ability to meet its obligations, if prudent financial management practices are not
consistently observed. Telesat understands well the risks involved in constructing and
operating satellites and is committed to a disciplined financial management approach and a
healthy balance sheet.
“Telesat has demonstrated an ability to execute their business plan and
provide value added services to their customers, while building a strong
suite of assets and capabilities.
Erik Charbonneau, Vice President, Global CommunicationsMerrill Lynch Canada Inc.
February 26, 2001
“RBC DS believes Telesat is well regarded in the industry. The Companyis perceived as one of the leading satellite companies with a highlyrespected management team.”
Daniel R. Coholan, Managing DirectorRBC Dominion Securities Inc.
February 25, 2001
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 4-15 March 15, 2001
Telesat’s target debt-to-capitalization objective is 50-55%. The Company has developed
financing plans that maintain leverage at or about this level throughout the construction of
its existing and planned satellites. The Company believes this capital structure provides
adequate flexibility and is appropriate given its business and industry. Telesat is of the
view that at this level of leverage it can maintain an investment grade credit rating and
hence good access to capital debt markets. This view is shared by the investment
community.
Telesat is confident that the same foresight that brought basic services to all Canadians via
Anik A1 can prevail again with the delivery of affordable, broadband services via Telesat’s
Ka-band satellite solution.
Telesat’s Ka-band satellite business proposal for the 118.7° WL orbital position is
innovative and meets the demands for broadband access by all Canadians. Subscribers
in rural and remote areas will receive services comparable to those provided in urban
areas. This proposal recognizes the challenges of delivering high-quality satellite
services to remote and northern areas.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 5-1 March 15, 2001
5.0 A SOLUTION FOR CANADA - BRIDGING THE DIGITALDIVIDE
Ensuring that all Canadians are on-line and contributing to Canada's information-based
economy is essential to our development and growth as a nation. Canada's unique
challenges require creative solutions that combine innovative technology with a flexible
economic model. All citizens, whether they are in major cities, rural and remote towns,
aboriginal communities, or teachers and healthcare workers in Canada's North, must be
participants in this new economy.
Telesat's Ka-band solution focuses on eliminating the barriers to access for those
constituencies and communities that can benefit most from the new services and
applications that are possible through broadband facilities. Telesat's solution is designed to
enable 'urban-like' services in rural and remote areas. Telesat's plan will enable all
Canadians to reap the benefits of broadband capabilities - not just those who happen to be
in the high-density urban corridors.
Telesat's application to develop the 118.7º WL Ka-band orbital location will:
• provide a made-in-Canada solution to the provision of cost-effective broadband
transmission service to individual Canadians and public institutions located in remote
and underserved areas;
• incorporate an all-Canadian design with industrial partners – COM DEV and EMS;
• create an advanced technology platform that meets the service needs of Canadians
while serving as an excellent demonstration of Canadian technology for export around
the world;
• secure strategically important Ka-band spectrum for development by Canadians; and
• enable a cooperative venture between public and private sectors, establishing a
broadband infrastructure to foster economic growth and to improve the quality of life
for Canadians, regardless of location.
Application to Develop and Operate a Ka-band Fixed-Satellite Space Stationin the 118.7º WL Orbital Position VOLUME 2
Telesat Canada Abridged 5-2 March 15, 2001
Telesat's application provides an opportunity for Canada to overtake other nations in the
development and implementation of broadband infrastructures. It will ensure that all
Canadians are able to enjoy the benefits associated with an information-based Internet
society. It will bridge the digital divide.
“Canada has always faced the challenge of connecting all citizens in its vast
territory. We must ensure that all Canadian communities, no matter where they
are, can reap the benefits of broadband Internet services. Access to high-speed
broadband will provide the foundation for improved services such as distance
learning and tele-health and will foster both regional and local economic
development.”
Hon. Brian TobinMinister of Industry
January 11, 2001
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