Loral Space & Communications got another big boost in its liftoff from bankruptcy when a massive broadband-communications satellite built by its Palo Alto subsidiary for Asia rocketed into space Thursday.
The 14,300-pound device -- dubbed Thiacom 4 (IPSTAR) is the heaviest commercial satellite ever placed in geosynchronous orbit, which is an orbit that follows the Earth's rotation, said Pat DeWitt, president of Loral's Space Systems unit in Palo Alto.
He said it was heavy because it was packed with electronic gear needed to provide broadband service to a wide area covering more than a dozen countries across Asia and the Pacific Rim.
``It's a major shift in the capabilities we were providing our customers,'' said DeWitt, who noted that the satellite can transmit 10 to 20 times the data of typical communications satellites. ``It demonstrates once again that we have the capacity to design and deliver very sophisticated satellites.''
More importantly, he added, because the satellite will provide Internet connections, the launch could generate more business for Loral from customers who now can't get on the Web.
``In the United States there are a lot of people who are not served by DSL or by cable modems, and there's a lot of pent-up demand for Internet services,'' he said.
The satellite was purchased by Shin Satellite of Thailand for about $200 million, said DeWitt, who added that most of Loral's satellites cost ``in the low $100 million range.'' Loral typically earns 15 percent profit on such sales, he said.
Loral, which filed for Chapter 11 protection in July 2003, last month obtained court approval for its plan to reorganize its finances, which could enable it to emerge from bankruptcy later this year. The company is counting on its Space Systems subsidiary to help it get back on its feet.
The $300 million in satellite revenues that Loral earned last year was one-third what it earned from satellites in 2002. And while the Space Systems subsidiary has contracts to build 15 satellites, it had about 25 such contracts three years ago.
But DeWitt said he expects business to pick up. Loral last month announced plans to hire 600 workers over the next 18 months at its Palo Alto subsidiary, most of whom will be involved in designing and building satellites, he said.
http://news.yahoo.com/s/sv/20050812/tc_siliconvalley/_www12368034;_ylt=Ah.eBA8dRyJt6RFqNpu13rgjtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
The 14,300-pound device -- dubbed Thiacom 4 (IPSTAR) is the heaviest commercial satellite ever placed in geosynchronous orbit, which is an orbit that follows the Earth's rotation, said Pat DeWitt, president of Loral's Space Systems unit in Palo Alto.
He said it was heavy because it was packed with electronic gear needed to provide broadband service to a wide area covering more than a dozen countries across Asia and the Pacific Rim.
``It's a major shift in the capabilities we were providing our customers,'' said DeWitt, who noted that the satellite can transmit 10 to 20 times the data of typical communications satellites. ``It demonstrates once again that we have the capacity to design and deliver very sophisticated satellites.''
More importantly, he added, because the satellite will provide Internet connections, the launch could generate more business for Loral from customers who now can't get on the Web.
``In the United States there are a lot of people who are not served by DSL or by cable modems, and there's a lot of pent-up demand for Internet services,'' he said.
The satellite was purchased by Shin Satellite of Thailand for about $200 million, said DeWitt, who added that most of Loral's satellites cost ``in the low $100 million range.'' Loral typically earns 15 percent profit on such sales, he said.
Loral, which filed for Chapter 11 protection in July 2003, last month obtained court approval for its plan to reorganize its finances, which could enable it to emerge from bankruptcy later this year. The company is counting on its Space Systems subsidiary to help it get back on its feet.
The $300 million in satellite revenues that Loral earned last year was one-third what it earned from satellites in 2002. And while the Space Systems subsidiary has contracts to build 15 satellites, it had about 25 such contracts three years ago.
But DeWitt said he expects business to pick up. Loral last month announced plans to hire 600 workers over the next 18 months at its Palo Alto subsidiary, most of whom will be involved in designing and building satellites, he said.
http://news.yahoo.com/s/sv/20050812/tc_siliconvalley/_www12368034;_ylt=Ah.eBA8dRyJt6RFqNpu13rgjtBAF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
