Eutelsat and SES Settle their dispute at the 28.5 degrees East Orbital Position
Luxembourg, January 30, 2014--Satellite operators Eutelsat and SES announced today that they have concluded a series of agreements including a comprehensive settlement concerning the right to operate at the 28.5 degrees East orbital position and long-term commercial as well as frequency coordination elements.
The first agreement ends the arbitral procedure between Eutelsat and SES that was initiated in October 2012 under the rules of the International Chamber of Commerce (ICC) in Paris. The dispute concerned a right of use of 500 MHz spectrum at the 28.5 degrees East orbital position. Eutelsat ceased to operate this spectrum on 3 October 2013 and SES has operated this spectrum since that date. The dispute over this right of use has now been resolved, with SES continuing to operate its satellites at this location, and Eutelsat independently commercializing part of the capacity of the previously disputed frequencies.
According to the second agreement between both companies, Eutelsat has therefore contracted long-term satellite capacity on the SES satellite fleet at the 28.5 degrees East orbital position. Eutelsat will commercialise over Europe on the SES fleet 125 MHz (eight transponders) of the formerly disputed 500 MHz. Eutelsat will also commercialize on the SES fleet the 250 MHz (12 transponders) which was not the subject of the legal proceedings. The 20 transponders will be operated on three new satellites which SES is deploying at the 28.2/28.5 degrees East neighbourhood – ASTRA 2F, ASTRA 2E and ASTRA 2G – of which the first two have been launched and are operational, while the third is planned for launch for later this year.
The third agreement between the two companies addresses technical frequency coordination under the rules of the International Telecommunication Union (ITU). It will allow both parties an optimised use of their respective spectrum at a number of orbital positions over Europe, the Middle East and Africa. It confirms and clarifies in technical terms the geographic coverage and transmission power levels for frequencies at these positions.
Michel de Rosen, Chairman and CEO of Eutelsat, said: "Guided by key objectives to deliver clients impeccable service and to optimise spectrum use, Eutelsat and SES have taken a pragmatic and business-like approach to reaching this settlement. These long-term agreements clarify the conditions for interference-free operations, enabling each company to independently expand its commercial activity in a competitive environment. Eutelsat is committed to delivering innovative services at one of the most vibrant neighbourhoods in the broadcasting market and can now further improve the productivity of its in-orbit resources and future investments."
"The agreements with Eutelsat create a secure framework for operations in major broadcasting and data markets in Europe, Middle East and Africa" said Romain Bausch, President and CEO of SES.
Following the settlement of the dispute, Eutelsat estimates the impact on revenues for its fiscal year 2013-2014 at approximately -5 million euros. There will be no impact on revenues in the two following years. Eutelsat will publish H1 2013-14 results on February 14, 2014.
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