Intelsat Seeking Bids to Build Broadband Satellite System

Intelsat will solicit proposals for the purchase of a next-generation multi-beam broadband satellite system. Intelsat plans to begin deployment of the system in 2004. Investment in the next-generation system is expected to total more than US$ 1.5 billion, with Intelsat expecting to sign a contract by mid/late-2001. The system will be deployed on a regional basis starting with Latin America, Asia-Pacific and Europe, followed by expansion to other regions later. One industry source says Intelsat may insist that the winning bidder accept significant vendor-financing provisions, which would permit Intelsat to delay contract payments.

The satellites will operate in the Ka-band portion of the radio spectrum, providing two-way, high-speed Internet links, primarily between businesses. Uplink data rates would range between 128 kilobits and 8 megabits per second, while downlink speeds would range between 34 and 56 megabits per second.

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