Intelsat’s Satellite Loss Isolates Pacific, Antarctic Areas

Intelsat’s IS-804 was manufactured by Lockheed Martin Corp. (Lockheed Martin photo)

Pembroke, Bermuda, Jan. 18/Satnews Daily/ — The loss of Intelsat’s IS-804 satellite has left the Pacific Island nations of Cook Islands, Western Samoa, Solomon Islands, Kiribati, Niue, Vanuatu, Tokelau, Tuvalu, Tonga and the US territory of American Samoa without communications links to other states, according to wire reports.

Other countries, including New Caledonia, Tahiti, Papua New Guinea, Fiji, East Timor, Vietnam, Korea and Saipan were also affected but could plug into backup systems. New Zealand territories of Scott Base in Antarctica and Chatham Islands, 500 kilometers to the east, also lost all phone links, according to Reuters.

An AFP report said many remote areas in the South Pacific remained without telephone communications to the outside world three days after the loss of IS-804. But quoting an official of Telecom New Zealand, AFP reported that communications were restored to Rarotonga in the Cook Islands, Western Samoa and the Solomon Islands through alternative satellite options. Telecom New Zealand rents capacity on the lost satellite.

Intelsat announced on Sunday IS-804 satellite experienced a sudden and unexpected electrical power system anomaly on Jan. 14 at 5:32 p.m. causing the total loss of the spacecraft.

The satellite, launched in 1997, provides telecommunications and media delivery services to customers in the South Pacific.

Launched atop a European Ariane 4 rocket on December 1997, IS-804 originally served the Indian Ocean region before being replaced by the newer IS-906 two years ago. In August 2002, Intelsat applied to relocate the satellite from 295.85 WL to 184 WL to provide telecommunications and media delivery services to customers in the South Pacific.

Only two months ago, Intelsat’s Americas-7 satellite also experienced a sudden and unexpected electrical distribution anomaly causing permanent loss of the spacecraft on Nov. 28, 2004 at approximately 2:30 am EST.

IA-7, which operated at 129 West, was launched in September 1999 and covered the continental U.S., Alaska, Hawaii, Canada, Central America, and parts of South America. The satellite was self-insured by Intelsat.

Intelsat said it believes there is no connection between the loss of IS-804 and IA-7 satellites as the two satellites were manufactured by two different companies and their designs are different. Space/Systems Loral manufactured IA-7 while Lockheed Martin Corp. manufactured IS-804.

Intelsat said a number of Intelsat-operated satellites in the region are being utilized to restore service to affected customers, and many end users of IS-804 capacity are already operating normally using replacement capacity. Intelsat added it has also begun working with other fleet operators where necessary to ensure the quickest possible restoration of service for customers.

Meanwhile, the second satellite loss may threaten the sale of $5 billion sale of Intelsat, Ltd to a consortium of four private investors. The sale, unanimously approved by the company’s Board of Directors on October 2004 provides for the “amalgamation” under Bermuda law of Intelsat and a subsidiary of Zeus Holdings Limited, a company formed by a consortium of private equity groups: Apax Partners, Apollo Management, Madison Dearborn Partners and Permira.

The total value of the transaction, including approximately $2 billion of existing debt, is approximately $5 billion.

Under the terms of the agreement dated August 16, 2004, among Intelsat, Ltd., Intelsat (Bermuda), Ltd., Zeus Holdings Limited, Zeus Merger One Limited and Zeus Merger Two Limited, the total loss of IS-804 or IA-7 satellite would give the purchasers the right not to consummate the acquisition of Intelsat. The purchaser, Zeus Holdings Limited, has advised Intelsat it is evaluating the impact of the IS-804 failure.

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