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Ciel Satellite Communications ABRIDGED Canada's Rising Star PART I Expression of Interest to Utilize the 12 GHz Broadcasting Satellite Service (BSS) Frequency Band at the 129OW Orbital Position May 14, 2004 5570 Pettapiece Cr. Manotick, Ontario Canada K4M 1C5 ABRIDGED May 20, 2004 Ms. Chantal Beaumier Director, Space & International Regulatory Activities Radiocommunication & Broadcasting Regulatory Branch Industry Canada 15 `" Floor - Jean Edmonds Tower North 300 Slater Street Ottawa, Ontario K1 A 0C8 Dear Ms . Beaumier: Re: Gazette Notice No. DGRB-001-04 - Calf for Interest in 12 GHz Broadcasting Satellite Orbital Positions This submission is filed by Ciel Satellite Communications Inc., in response to the above- referenced call for interest, in which Industry Canada ("the Department") announced the release of a paper inviting interested parties to submit expressions of interest for utilizing the 12 GHz Broadcasting Satellite Service (BSS). The shareholders and management of Ciel include experienced Canadian satellite experts and users, *** and a well-respected international satellite operating company with an exemplary record of service worldwide. Through its shareholders, Ciel possesses substantial Canadian financial, technical and operating resources and is uniquely positioned to introduce the benefits of competition to the domestic satellite industry. Indeed, Ciel firmly believes that if sustainable domestic satellite competition among Canadian service licensees is to be attained, the time is now or the opportunity will be lost. In addition to the enclosed expression of interest for utilizing the 12 GHz BSS at 129°W, Ciel is also filing letters of intent relating to the 118.7°W FSS Ka band and to 109.2°W at ABRIDGED the FSS C and Ku bands . Ciel intends to operate as a full-service new entrant in the Canadian satellite industry with a long-term commitment to providing an array of services across the country. This submission, then, consists of four parts: Part I : Expression of Interest to Utilize the 12 GHz Broadcasting Satellite Service (BSS) Frequency Band at the 129°W Orbital Position; Part II : Letter of Intent to Develop and Operate a Ka Band Fixed Satellite Space Station in the 118.7°W Orbital Position ; Part III : Letter of Intent to Develop and Operate a C and Ku Band Fixed Satellite Space Station in the 109.2°W Orbital Position; and Part IV: *** *** . Ciel believes that only with a plurality of orbital positions will a new entrant be able to provide the range and quality of service offerings necessary to sustain real competition in the domestic satellite industry. In view of the benefits to Canada that the presence of a new Canadian satellite operator would provide, and the specific commitments and plans contained in this multi-part submission, the Applicant urges Industry Canada to grant the licences requested so that Ciel may begin to implement its plans for the provision of service throughout Canada and beyond its borders. This submission contains (i) trade secrets of Ciel, and its shareholders, Barrett Corporation, Smyth Satellite Holdings Inc., SES Americom, Inc. and *** and their respective affiliates (collectively "Ciel et al") ; (ii) financial, commercial, scientific or technical information that is confidential information of Ciel et al and treated consistently in a confidential manner by Ciel et al ; (iii) information the disclosure of which would prejudice the competitive position of Ciel et al; and (iv) information the disclosure of which would interfere with contractual or other negotiations of Ciel et al., all within the meaning of subsection 20(1) of the Access to Information Act (Canada) . Ciel et al. claims confidentiality with respect to the entire submission, except ABRIDGED to the extent such confidentiality is explicitly waived by Ciel or disclosure is required by operation of law. Ciel is very pleased to have the opportunity to participate in this process. Should it receive a favourable licensing decision, Ciel looks forward to a long and productive relationship with the Department both as a strong new force in the Canadian satellite industry and as an important new player in the communications sector in Canada. Sincerely, David Lewis Kevin B. Smyth Director Director ABRIDGED CONTACT INFORMATION Any inquiries regarding this submission should be addressed to one of the following : - and - ABRIDGED Table of Contents EXECUTIVE SUMMARY INTRODUCTION Ill . THE APPLICANT 1 .0 Introduction 2.0 Barren Corporation 2.1 Background 2.2 Barren Xplore 2.3 *** 2.4 A Unique Infrastructure Built to Reach Rural and Remote Communities 3 .0 Smyth Satellite Holdings (SSH) 3.1 Experience and Expertise 41 SES 4.1 SES Americom 4.2 SES Attributes 5.0 6 .0 Senior Management Team 7 .0 Ownership and Control IV. THE BUSINESS PLAN 1 .0 Business Plan Outline 2.0 Capital Expenditures 3.0 Financials Annex to Financial Model - Assumptions V. BENEFITS TO CANADA 1 .0 Introduction 2.0 General Public Policy Objectives 2.1 Introduction 2.2 Radiocommunication Act 2.3 Telecommunications Act 2.4 Broadcasting Act 2.5 *** 2 .5.1 *** ABRIDGED 2.5.2 2.5.3 2.6 Innovation 3.0 Competition/Innovation 3.1 Introduction 3.2 Competition in Telecom Services 3.3 Proposed Benefits to 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 3 .4 Barriers to Entry 3.5 The Benefits of Competition 4.0 Public Benefits/Benefits to *** 5.0 Benefits to Canadian Suppliers and Manufacturers 6 .0 Conclusion V1 . THE TECHNICAL PLAN 1 .0 Overall Description 1 .1 In-Service Date 1 .2 Procurement and Launch 2.0 Communications Payload 2.1 Transponder Characteristics 2.1 .1 Transponder Frequency Plan 2 .2 Emission Designators 2 .3 Communications Coverage 2 .3 .1 Canadian Coverage Area 2 .3 .2 Potential non-Canadian Coverage Area 2 .4 Noise Temperatures 2 .5 Gain 2 .6 Flux Control 2 .7 Saturation Flux Density 2.8 Transponder Gain 2.9 Spurious Emissions 2.10 Cross Polarization Isolation 2.11 Frequency Tolerance 2.12 Link Budgets 2.13 Cessation of Emissions 3.0 Spacecraft Bus Description 3.1 Tracking, Telemetry, and Command (TT&C) Subsystem 3.2 Attitude Control and Station keeping Subsystem 3.3 Electrical Power Subsystem 3.4 Propulsion 3.5 Structural Compatibility, Dimensions and Mass Budget 3.6 Thermal Control Subsystem 3.7 Reliability and Operational Life 4.0 ITU and Regulatory Considerations ABRIDGED 4.1 Undertaking to not Cause Harmful Interference 4.2 Undertaking to Conform to Existing Canadian Coordination Agreements 4 .3 Frequency Coordination Plan 5.0 Ku Band BSS Payload 1290 W - ***; *** VII . CONSOLIDATED STATEMENT OF COMMITMENTS APPENDICES A Certificates of Incorporation C Letters of Support D E F SES Global - 2003, 2002 & 2001 Annual Reports G Barren Corporation - Consolidated Financial Statements - 2003, 2002 & 2001 H I Biographies of Management (Board of Directors, Senior Management) i Glossary Abridged Version Canada’s Rising Star Canada’s Rising Star Licence Application for 129ºW Ku Band BSS Executive Summary CIEL PROPRIETARY INFORMATION 1 Abridged Version Canada’s Rising Star Executive Summary - Outline Vision Benefits of Ciel’s Entry Company Shareholders Senior Management/Board of Directors BSS Strategy Space & Ground Segment Services & Demand Financial Summary Widespread Support Public Benefits CIEL PROPRIETARY INFORMATION 2 Abridged Version Canada’s Rising Star Vision Canada’s first real competitive alternative for Ku band BSS satellite capacity: Enables Direct-to-Home video and/or Ciel 2 content distribution through a new Ku satellite platform BSS 129ºW Maximizes the value of Canada’s remaining nationwide BSS orbital Direct-to- location to launch a new wholesale Home Video platform Brings into commercial use for Canada the 129ºW slot to meet ITU deadline New Satellite Platform Enabling a Full Range of BSS Services CIEL PROPRIETARY INFORMATION 3 Abridged Version Canada’s Rising Star Benefits of Ciel’s Entry Canadian owned and controlled Creates choice of space segment providers Motivated entrant*** Extensive knowledge of Canadian market Backed by credible, proven partners Canada-wide coverage Competitive pricing Innovative services Highly responsive to customer needs Significant public benefits*** CIEL PROPRIETARY INFORMATION 4 Abridged Version Canada’s Rising Star Company Shareholders Barrett Corp *** Smyth Satellite SES Americom Holdings Proven Canadian provider of satellite communication Proven Canadian Wholly-owned services satellite entrepreneur subsidiary of SES Global Pioneer of Direct-to- Experience in Home video and managing and Leading global satellite broadband services developing satellite operator with 16 to remote areas businesses satellites in operation Established Strong international Strong design, distribution network experience in satellite procurement and for new satellite communication operations experience services industry – industry leading reliability/quality Leader in satellite communication research and innovation Leading Satellite Industry Partners Committed to New Operator CIEL PROPRIETARY INFORMATION 5 Abridged Version Canada’s Rising Star Senior Management/Board of Directors Ciel Satellite Holdings Inc.*** CIEL PROPRIETARY INFORMATION 6 Abridged Version Canada’s Rising Star Senior Management/Board of Directors Ciel Satellite Communications Inc.*** CIEL PROPRIETARY INFORMATION 7 Abridged Version Canada’s Rising Star BSS Strategy*** CIEL PROPRIETARY INFORMATION 8 Abridged Version Canada’s Rising Star Space & Ground Segment Ciel 2 – 129ºW Ku Band BSS Downlink *** CIEL PROPRIETARY INFORMATION 9 Abridged Version Canada’s Rising Star Services & Demand Ciel 2 at
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