Paradigm Signs 2-Year Extension to Skynet 5 Contract

LONDON, Dec. 21, 2005/Satnews Daily/ — Paradigm Secure Communications Ltd, a subsidiary of EADS Space Services, signed on Tuesday an amendment with the UK Ministry of Defence (DoD) to extend the 15 year Skynet 5 PFI service contract for military communications.

Paradigm said the extension will provide the UK MoD with increased value for money through increased assurance and extended capability. A key feature of the extension is that Paradigm will order construction and launch of a third satellite, Skynet 5C, to be manufactured by EADS Astrium.

According to Paradigm, there is no cost increase to the MoD when comparing the common 15-year baseline periods of the old and the new deals.

“Savings from insurance costs and a cutting edge refinancing scheme are at the heart of the approach,” the company said. “A three-satellite constellation means better performance, more efficiency, longer services availability, with a concession period extended from 2018 to 2020.”

Paradigm is also ordering the partial build of a fourth satellite, to be held in reserve. If required, in order to maintain the assurance strategy of having three satellites in orbit, the fourth satellite would be completed and launched in the event that any of the first three satellites were not successfully commissioned after launch. Paradigm said the new agreement will also provide the potential for other customers to benefit from increased coverage and capacity.

Skynet 5A is scheduled for launch in the second half of 2006 with 5B in 2007 and 5C in 2008. EADS Astrium has selected Arianespace for the first two launches.

“This extension takes the groundbreaking Skynet 5 PFI service contract to another level - not only will it provide increased assurance to the UK MoD through reduced risk and provision of a third satellite, but it will also provide greater value for money,” Malcolm Peto, managing director of Paradigm said. “This demonstrates our capability in day-to-day management of complex service contracts with innovative engineering commercial and financial structures whilst securing increased benefits for all our customers.”

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