Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Preface to Ka-band Application

Telesat is pleased to submit its response to Industry Canada’s Call for Applications to Develop and Operate Fixed-Satellite Space Stations in the 118.7° W Longitude Orbital Position (Canada Gazette Notice DGRB-008-00).

This application for the C and Ku-band licence at 118.7° West Longitude (WL) is submitted in four volumes: an Executive Summary; Volume 1 – Qualification; Volume 2 – Telesat's Solution; and Letters of Support.

Telesat claims confidentiality for the Executive Summary, Volume 2 – Telesat’s Solution, and portions of the appendices of Volume 1- Qualifications, whereas the remainder of Volume 1- Qualifications is not considered to be confidential. The confidentiality claim is based on Telesat’s operation in a competitive market. Disclosure of the information would prejudice the Company’s competitive position. Abridged versions have been submitted separately.

Telesat has also submitted under separate cover an application for the C and Ku-band licence at 118.7° WL. It is the Company's position that its acceptance of the Ka-band licence is contingent on Telesat obtaining the C and Ku-band licence.

For ease of reference, a Cross Reference and Compliance Table is included as Appendix 1 to both Volume 1 and Volume 2. This table relates each section of the Call for Applications to the relevant section(s) of Telesat’s response.

The contact regarding this application is:

Mr. John Forsey, P.Eng. Director, New Satellite Ventures and International Coordination Telesat Canada 1601 Telesat Court Ottawa, Ontario K1B 5P4

Telephone: (613) 748-8700 ext. 2530 Fax: (613) 748-8712 e-mail: [email protected]

Telesat Canada - ii - March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

TABLE OF CONTENTS

SECTION PAGE

1.0 INTRODUCTION ...... 1-1 2.0 TELESAT - AN OVERVIEW ...... 2-1 2.1 TELESAT’S EVOLUTION...... 2-1 2.2 TELESAT’S TRANSITION STRATEGY...... 2-2 2.3 TELESAT’S PRIMARY BUSINESS - CANADA FIRST...... 2-6 3.0 LEGAL QUALIFICATIONS...... 3-1 3.1 INTRODUCTION...... 3-1 3.2 TELESAT’S LEGAL HISTORY AND STATUS...... 3-1 3.3 CANADIAN OWNERSHIP AND CONTROL...... 3-2 4.0 FINANCIAL QUALIFICATIONS...... 4-1 4.1 INTRODUCTION...... 4-1 4.2 FINANCING...... 4-1 4.3 RISK MANAGEMENT ...... 4-3 5.0 TECHNICAL QUALIFICATIONS...... 5-1 5.1 INTRODUCTION...... 5-1 5.1.1 Telesat’s Satellites...... 5-1 5.1.2 Telesat’s Services - A History of Connecting Canada...... 5-3 5.1.3 Technical Innovations - Keeping Canada in the Lead...... 5-10 5.2 TELESAT’S ENGINEERING EXPERTISE...... 5-12 5.2.1 Systems Engineering...... 5-12 5.2.1.1 Traffic Planning and Systems Design...... 5-12 5.2.1.2 The Traffic Planning Committee...... 5-13 5.2.1.3 The Emergency Committee...... 5-15 5.2.1.4 Access Engineering...... 5-17 5.2.1.5 Frequency Coordination...... 5-17 5.2.2 Space Segment Engineering and Operations...... 5-20 5.2.2.1 Introduction...... 5-20 5.2.2.2 Satellite Procurements...... 5-20 5.2.3 Satellite Operations and Ground Support Infrastructure ...... 5-25 5.3 TELESAT’S EARTH SEGMENT EXPERTISE...... 5-33 5.3.1 Introduction...... 5-33 5.3.2 Teleport Infrastructure...... 5-34 5.3.3 Standard Services ...... 5-34 5.3.4 Shared VSAT Hubs...... 5-35

Telesat Canada - iii - March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

5.3.5 Shared Voice Network...... 5-36 5.3.6 Video Uplink Service...... 5-37 5.3.7 Best-in-Class Hardware ...... 5-38 5.3.8 Emergency Restorations ...... 5-38 5.3.9 Satellite Resource Management...... 5-38 5.3.10 Manufacturer Developments ...... 5-39 5.4 NETWORK OPERATIONS...... 5-39 5.4.1 Introduction...... 5-39 5.4.2 Operating and Maintaining Telesat’s Earth Station Network ...... 5-40 5.4.3 Satellite Network Operations Centre (SNOC)...... 5-41 5.4.4 Training and Development...... 5-42 5.4.5 Repair Facility...... 5-42 5.4.6 Conclusion...... 5-43 5.5 CONNECTEDNESS AGENDA ...... 5-43 5.5.1 Introduction...... 5-43 5.5.2 Advanced Satellite Systems ...... 5-44 5.5.3 Schoolnet ...... 5-45 5.5.4 Smart Communities/Community Access Program...... 5-48 5.5.5 Applications Development...... 5-49 5.5.6 R&D Lab...... 5-50 6.0 SERVICE TO NORTHERN AND REMOTE AREAS...... 6-1 6.1 INTRODUCTION...... 6-1 6.2 TELEPHONE COMPANY NETWORKS...... 6-1 6.3 BROADCAST...... 6-3 6.4 BUSINESS AND GOVERNMENT...... 6-4 7.0 INTERNATIONAL ACTIVITY...... 7-1 7.1 INTRODUCTION...... 7-1 7.2 TELESAT - SERVICES IN THE U.S. AND THE AMERICAS...... 7-2 7.2.1 Satellite Restoral/Back-up Capacity...... 7-2 7.2.2 Cross-Border Links ...... 7-3 7.2.3 Facilities Engineering ...... 7-3 7.2.4 VSAT Network Maintenance...... 7-4 7.2.5 South America...... 7-4 7.3 INTERNATIONAL CONSULTING...... 7-5 8.0 FOSTERING A CANADIAN SATELLITE INDUSTRY ...... 8-1 8.1 INTRODUCTION...... 8-1 8.2 SPACE SEGMENT...... 8-2 8.2.1 Support of the Canadian Space Industry ...... 8-2 8.2.2 The Anik F and Nimiq Examples ...... 8-3

Telesat Canada - iv - March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

8.3 EARTH SEGMENT...... 8-4 8.3.1 Telesat R&D Lab...... 8-5 8.3.2 Advanced Satcom Trials Program...... 8-5 8.3.3 Anik F2 Ground Network...... 8-7 9.0 A HISTORY OF COMMITMENT - COMMITTED TO THE FUTURE...... 9-1

APPENDIX 1 - CROSS REFERENCE AND COMPLIANCE TABLE APPENDIX 2 - CANADIAN OWNERSHIP AND CONTROL APPENDIX 3 - TELESAT FINANCIAL STATEMENTS APPENDIX 4 - LIST OF ACRONYMS APPENDIX 5 - SELECTED CURRICULA VITAE

LIST OF TABLES

Table 2.1 Existing Fleets of Satellites...... 2-4 Table 5.1 Overview of Telesat Satellites...... 5-2 Table 5.2 Telesat Firsts ...... 5-11 Table 7.1 Spacecraft Programs Consulting Experience...... 7-6

LIST OF FIGURES

Figure 2.1 Operating Revenues by Business Unit For 2000...... 2-7

Telesat Canada - v - March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

1.0 INTRODUCTION

“We must ensure that all Canadian communities, no matter where they are, can reap the benefits of broadband Internet service. Access to high-speed broadband will provide the foundation for improved services such as distance learning and tele-health, and will foster both regional and local economic development.”

Brian Tobin, Minister of Industry January 11, 2001

Telesat has the experience and the qualifications to realize Minister Tobin's broadband vision for Canadians in every corner of this country.

Canada’s satellite system, built and operated by Telesat, has been, and continues to be, a critical component of this country’s infrastructure. From Anik A to Nimiq and Anik F, Telesat’s satellites have been important national building blocks.

In an age of broadband Internet communications, it is essential that Canada expand and enhance its telecommunications and broadcast infrastructure as a critical foundation for building the nation. This can be achieved by maintaining Telesat as a strong and effective, truly Canadian satellite company.

For nearly 30 years, since its first services were offered, Telesat Canada has been connecting Canadians and bringing Canada closer together. Providing telecommunications services to all Canadians, including those in the North and in remote areas of the country, has always been the underlying

principle of Telesat’s operations. Eureka, Nunavut

Telesat Canada 1-1 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

The Honourable Eric Kierans, Canada's first Minister of Communications, in 1969 considered the alternatives that he saw for Telesat Canada. “Telesat Canada may orbit just a single satellite, it may serve its primary function of service to the North and supplementary east-west traffic, but never grow substantially beyond those limits. At the other end of the scale, Telesat may accomplish a great deal more.”

Eric Kierans' vision of what Telesat might accomplish encompassed such applications as satellite-linked data banks in universities and libraries, nationwide electronic newspaper publishing, tele-medicine and tele-education services, electronic funds transfer and direct-to-home satellite signal reception.

While even the primary objective seemed ambitious in 1969, Telesat has achieved even more than what Mr. Kierans deemed to be visionary. Telesat's original raison d’être was to bring English and French CBC broadcast signals and basic telephone services to a handful of remote and northern communities. Since then, Telesat’s achievements in service and innovation - described more fully in Section 5.1.2, Telesat's Services - A History of Connecting Canada - have contributed significantly to the enhancement of Canada’s social and economic fabric.

Telesat has consistently been at the forefront in the development of state-of-the art satellite technologies utilizing technological innovations to improve the scope, uniqueness, performance and cost-effectiveness of satellite-based solutions. The results are evident in the high-quality satellite services available to all Canadians. Moreover, Telesat has contributed significantly to the creation of indigenous Canadian skills and expertise in the satellite communications field. As a result, Canada is recognized today as a centre of excellence throughout the global satellite industry.

Telesat Canada 1-2 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Over the past 30 years, Telesat has developed the solid satellite infrastructure that Canadians now enjoy. Telesat is Canada’s satellite operator in today’s global satellite marketplace. However, the forces of global competition and the economies of scale inherent in the operations of much larger players in the marketplace dictate that Telesat must now expand on its established satellite facilities base. No other Canadian company can match Telesat's technical expertise, satellite systems knowledge, or financial depth. No other Canadian company can design, build, launch, and operate a next generation satellite system to meet the current and future needs of Canadians, while also moving boldly into new markets. This is particularly true when one considers the very aggressive development schedule required for the 118.7° WL orbital position.

Today, there are three satellite operators serving the United States’ (U.S.) market of 280 million. The Canadian market, with a population of 30 million, cannot sustain more than one strong operator. Awarding the spectrum at the 118.7° WL orbital position to a so-called 'Canadian' entity with no experience in the satellite industry is likely to lead to foreign control of this Canadian natural resource. Telesat is the only truly Canadian entity with the experience and capability to ensure a strong Canadian satellite system for the future.

Telesat

Telesat Canada 1-3 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Spectrum is the raw material of the satellite industry, a natural resource that is finite. While access to the 118.7° WL orbital position cannot in itself sustain a strong Canadian presence, this resource is critical to building the Canadian satellite fleet needed for the future. Access to 118.7° WL by Telesat is absolutely essential to its ability to remain financially viable in the satellite services business. By augmenting its current satellite infrastructure with the orbital spectrum at 118.7° WL, Telesat will continue to add the satellite infrastructure it needs to prosper and grow from its Canadian base. Not only will Telesat access to 118.7° WL maintain Canada’s strong position in the satellite industry, it will also:

· ensure success for the Government of Canada's Connecting Canada commitment; · ensure that existing Canadian services have capacity for expansion and are adequately backed up; · safeguard highly skilled jobs in Canada; and · foster export opportunities for Canadian companies.

This application will demonstrate that Telesat is the best qualified Canadian company to deliver on all of Industry Canada’s goals outlined in the current Call for Applications. Telesat will deliver to Canada a comprehensive mix of satellite services through the establishment of a diverse fleet of Canadian satellites owned and operated by a world- renowned Canadian satellite operator.

Canadians overwhelmingly support Telesat's application to develop the 118.7° WL orbital position. This support reflects Telesat's history of commitment to Canada and its ability to continue to build the satellite facilities critical to our nation's development. Quotes from our supporters may be found throughout this application. A selection of letters of support is provided in a separately-bound volume.

Volume 1 of this application provides detail on Telesat’s qualifications, its long history of service to Canadians and its record of growth around the world. Volume 1 also highlights Telesat's pursuit of new opportunities through research and development, and its relationship with Canadian industry. The companion Volume 2 of Telesat’s application provides details of the technical plan and business case for innovative use of the spectrum at 118.7° WL - a plan that will help realize the broadband vision of the Government of Canada.

Telesat Canada 1-4 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

2.0 TELESAT - AN OVERVIEW

“Through the responsiveness and willingness of Telesat resources, we have been successful in developing and deploying a satellite network for video conferencing applications to address the communication requirements for enhancing health and education with the First Nations communities.” Cindy Chandler, Director - Business Solutions Bell Canada January 23, 2001

2.1 TELESAT’S EVOLUTION

In March 1968, the Government’s White Paper entitled A Domestic Satellite Communications System for Canada, concluded that in view of Canada’s particular geographic, economic and social features,

“…. a domestic satellite communications system is of vital importance for the growth, prosperity and unity of Canada, and should be established as a matter of priority…”

As a result, Telesat was incorporated by Act of Parliament in September 1969. Among the key objectives for the Company, clearly enunciated in the statute was:

“5. (1) The object of the company is to establish satellite telecommunication systems providing, on a commercial basis, telecommunication services between locations in Canada.”

From its beginnings as a Company employing a small number of engineers and other professionals tasked to plan the launch and operation of one satellite and a handful of earth stations, Telesat has grown into one of the most respected satellite operators in the world. Telesat’s sixth generation Anik F satellites and its Nimiq Direct Broadcast Satellite (DBS) are among the most powerful and innovative communications spacecraft ever to be designed. The knowledge and expertise that Telesat employees possess are highly respected around the world, and Telesat has competitively won satellite procurement monitoring and operations contracts on six continents. This success has continued to provide important opportunities for further skills development and significant export earnings.

Telesat Canada 2-1 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Throughout its history, Telesat has contributed to the achievement of a multitude of government objectives by working closely with government departments and research agencies, such as the Communications Research Centre (CRC) and the Canadian Space Agency (CSA). In addition to advancing the capabilities of satellite communications, Telesat has forged close ties with Canada’s aerospace industry. For example, Telesat was selected under the CSA/CRC Payload Flight Demonstration Program to space-qualify, on its Anik F2 program, leading-edge components from Canadian industry. These components will lead the way in the development of high capacity payloads for multimedia applications. Initial work on Telesat projects has enhanced export opportunities for Canadian firms in the past and will continue to provide opportunities into the future.

2.2 TELESAT’S TRANSITION STRATEGY

Telesat has welcomed the liberalization of the satellite services market. It recognizes the very substantial opportunities that it will be afforded as an efficient satellite operator in the broader market of the Americas. Consequently, Telesat has not passively waited to respond to competition resulting from a liberalized trade environment. Instead, it has aggressively expanded its market horizons and is building on its Canadian expertise to broaden its service offerings throughout the United States, Mexico, and South America.

In 1996, Telesat, anticipating the implementation of the proposed World Trade Organization’s (WTO) Basic Agreement on Telecommunications and the resulting fundamental changes to global satellite markets, developed a bold plan to position Canadian satellites to provide services throughout the Americas.

Telesat Canada 2-2 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

The transition plan called for a transformation of both the scope and the scale of Telesat. The Company’s scope would be expanded beyond Canada to include new geographic satellite markets throughout North and South America. To accomplish this, the scale of Telesat’s space segment infrastructure (i.e. satellites) would have to be augmented substantially with new satellite facilities and additional capacity.

The first milestone of Telesat’s transition strategy came with the successful launch and commercial operation of Canada’s first Direct Broadcast Satellite, Nimiq. Nimiq delivers services to all parts of Canada, and today over 750,000 households are viewing Canadian programming carried on the Nimiq satellite. Nimiq also has coverage of the U.S., which permits future facilities competition in that DBS market. Telesat recently committed to build a second DBS satellite to provide the necessary back-up capacity to restore Nimiq services in the event of a failure, and to provide additional capacity for service expansion.

The next milestone in the plan was the design, construction, launch and operation of Anik F1, the largest, most powerful and versatile satellite ever to serve Canada. Anik F1 is uniquely designed to advance Telesat’s transition strategy of expanding its scope throughout the Americas, as it is the only satellite offering full coverage of Canada,

continental U.S., Mexico, and all of South Anik F1 America.

With Nimiq and Anik F1, Telesat has provided new and innovative Direct-to-Home (DTH) services, additional broadcasting services and telecommunications applications to Canadian broadcasters and enterprises across the country.

Telesat Canada 2-3 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

In perhaps the most ambitious step in its transition strategy, Telesat is currently completing the construction of Anik F2. Not only will Anik F2 provide enhanced facilities in the C and Ku-bands, but this satellite will also bring advanced Ka-band multimedia capacity to Canada and to North America. In the process, it will facilitate the Canadian government’s Connecting Canada agenda. Moreover, Anik F2 will provide the development of ground-breaking new satellite products by COM DEV and EMS Technologies - companies that employ highly-skilled Canadians.

Anik F2 Despite its long and successful history in the industry, Telesat remains a small player, dwarfed both in revenues and the size of its fleet by firms based in the United States and Europe (see Table 2.1).

Table 2.1 Existing Fleets of Satellites FSS Satellite North American Global Presence Fleet in 2000 Slots* PanAmSat 21 12 North & South America, Asia/Pacific Loral (Skynet, 12 10 North America, Brazil, Europe, Middle East, Asia Orion, SatMex) GE Americom 18 14 North & South America, Europe (incl Columbia) Intelsat 18 12 All Regions SES Astra 10 BSS/ FSS (Note 2) Europe, Asia/Pacific New Skies 5 7 (Note 3) North America, Europe, Asia Eutelsat 18 (Note 1) (Note 2) Europe, Asia, Middle East, Africa Telesat 3 2 (Note 4) North & South America *Slots may have full or partial coverage of North America.

Note 1: Current fleet of satellites does not serve North America, but company has indicated interest /or has been authorized for entry. Note 2: Current satellite fleet accesses spectrum in regions other than North America. Note 3: New Skies has four FSS satellites accessing three slots with North American coverage; it is also currently frequency coordinating an additional four North American orbital locations. Note 4: Telesat has a temporary authorization to a third slot.

Sources: Company Web Sites Euroconsult, World Satellite Communications & Broadcasting Markets, 2000 Edition Merrill Lynch, Global Satellite Marketplace 2001

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Satellite programs entail large investments, complex technology, and long lead times. Consequently, the relative strength of national satellite sectors will be largely determined by factors such as access to financial resources, the level of technological innovation, and, of prime importance, access to the raw material of satellite services - spectrum. These factors become even more important in an open and competitive satellite services environment.

Rationalization and consolidation in the satellite industries of both the United States and Europe have created trans-national giants with global reach. The competitive dynamics of today’s global satellite market and the relative small size of the Canadian market, require Canada to act strategically to ensure the maintenance of a strong Canadian presence. That presence can be achieved by fostering the development of a comprehensive fleet of Telesat’s Canadian satellites to meet the diverse and evolving needs of Canadians, both today and in the future - a fleet that will provide satellite services throughout all of Canada, enable Canadian businesses to extend their reach throughout the Americas, and have adequate capacity to effectively back up all of these services.

While Anik F1 and Anik F2 will increase the scope of Telesat’s geographic reach and introduce new applications for satellites, their primary role will be as replacement satellites for the existing Anik E’s that are approaching the end of their service lives. Consequently, Telesat’s transition strategy involves further expansion of Telesat’s satellite infrastructure to achieve the fleet size necessary to effectively compete in the satellite market of the Americas. Expansion of Telesat’s existing satellite system will not be possible without access to additional Canadian orbital positions. The success of Telesat’s transition strategy will rely upon Telesat’s proven ability to innovate and create new, low-cost and effective services to Canadians. Most important, it is contingent upon necessary additional spectrum resources.

Telesat Canada 2-5 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

2.3 TELESAT’S PRIMARY BUSINESS - CANADA FIRST

Today, Telesat is Canada’s sole owner and operator of fixed and broadcast geostationary satellites. Telesat’s primary focus is its core Canadian business. The Company has established strong, long- term relationships with many Canadian customer groups and is committed to

serving all parts of Canada, including the Ogoki, Ontario Far North. In addition, the Company offers satellite facilities for the delivery of telecommunications services beyond Canada, to foreign markets within the Americas.

Far more than a provider of space segment, Telesat is a provider of end-to-end satellite services. Indeed, 40% of Telesat’s revenues and half of its employee body are related to the provision of these value-added services.

Although Telesat’s historic position in Canada is unique, the current competitive market is by no means a captive one. With the introduction of full fixed satellite service (FSS) satellite competition to the Canadian market, Telesat’s existing fleet of three Anik satellites is now competing for market share with nearly 50 foreign satellites that have been authorized by Industry Canada to provide FSS satellite services in Canada.

Telesat has successfully managed the construction, launch and operation of 13 FSS and broadcast satellite service (BSS) Canadian satellites since its inception in 1969. From its Satellite Control Centre (SCC) in Ottawa, the Company controls and operates its own fleet of satellites (Nimiq, Anik E1, E2, F1), as well as Anik C1 and MSAT which are owned by other organizations.

In addition to its primary role of service provider to Canadians, Telesat also provides satellite-related services to customers around the world. The scope of Telesat’s business is broadened by its envied international reputation for its satellite procurement and operations expertise. The Company’s consulting work includes managing spacecraft construction and launch programs and the operation and control of satellites around the world.

Telesat Canada 2-6 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Telesat is one of only a handful of satellite operators in the world that has in place a full complement of staff and the infrastructure to procure, launch and operate geostationary communications satellites.

Telesat’s consulting business also extends to furnishing documentation, software, training, and support services to other satellite operators around the world; including flight dynamics systems, launch and early operations, and mission analysis and planning.

Telesat’s business has traditionally been divided into four distinct business units: broadcasting, carriers, business/government networks, and international consulting. Figure 2.1 illustrates the percentage of revenues generated by each of these business units in 2000.

Figure 2.1 Operating Revenues by Business Unit For 2000

Telesat has evolved from its beginnings as a telecommunications carrier serving other carriers within the Canadian market. Telesat welcomes the liberalization of the satellite services market and has expanded its horizons worldwide. However, Telesat's primary focus is, and will continue to be, the Canadian market. Access to the spectrum at the 118.7° WL orbital position will enhance Telesat's commitment to Canada.

Telesat Canada 2-7 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

3.0 LEGAL QUALIFICAT IONS “Canadian orbital slots are natural resources for Canadian enterprises to develop. CHUM does not see the merit in allocating a crucial Canadian natural resource to a numbered company that will ultimately be controlled by a foreign entity.” Mark Lewis, Senior Legal Counsel CHUM Television March 1, 2001

3.1 INTRODUCTION

Throughout its history, Telesat has been owned and controlled by Canadians. Moreover, Telesat has always based its operations in Canada, where the vast majority of its employees reside. Consequently, Telesat has contributed to the establishment in Canada of a unique base of highly-skilled engineers and technicians. Through its cooperation with, and nurturing of, indigenous Canadian manufacturers, Telesat continues to encourage the development of Canadian suppliers to the satellite industry.

3.2 TELESAT’S LEGAL HISTORY AND STATUS

Telesat Canada was incorporated on September 1, 1969 by the Telesat Canada Act, a special act of the Parliament of Canada. In March 1992, the Government of Canada sold its 49.3 percent interest and the Canadian National Railway Company’s 3.7 percent interest in the Company to Alouette Telecommunications Inc. (Alouette). At that time, Alouette was owned by: Canadian Telephone and Supplies Ltd., a subsidiary of BC Tel (formerly the British Columbia Telephone Company); AGT Limited (formerly Alberta Government Telephones); Saskatchewan Telecommunications; The Manitoba Telephone Systems; Tele-Direct (Publications) Inc., a subsidiary of BCE Inc.; The New Brunswick Telephone Company Limited; Maritime Telegraph & Telephone Company Limited; The Island Telephone Company Limited; Newfoundland Telephone Company Limited; Quebec Telephone; and Spar Aerospace Limited.

Telesat Canada 3-1 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

At the time of the divestiture by the Government of Canada of its interest in the Company, the Telesat Canada Act was repealed and the Company was continued on March 27, 1992 under the Canada Business Corporations Act pursuant to the Telesat Canada Reorganization and Divestiture Act.

Since May 1998, Bell Canada Enterprises (BCE) has indirectly owned 100% of the voting shares of the Company. More specifically, 100% of the voting shares of the Company are owned by Alouette. In turn, 75% of the voting shares of Alouette are held directly by BCE and the remaining 25% of the Alouette voting shares are held indirectly by BCE through its wholly-owned subsidiary, 3588513 Canada Inc. BCE is publicly traded on both the Toronto and New York Stock Exchanges.

The principal and head offices of the Company and Alouette are located at 1601 Telesat Court, Ottawa, Ontario, K1B 5P4.

The Company has three subsidiaries in which it controls 100 percent of the voting stock: Infosat Communications Inc., 3484203 Canada Inc., and a Brazilian subsidiary known as Telesat Brasil Ltda. 3484203 Canada Inc. is the owner of 100% of the limited partnership units in TMI Communications and Company, Limited Partnership (TMI).

3.3 CANADIAN OWNERSHIP AND CONTROL

Telesat is fully compliant with the Canadian ownership and control requirements of a radiocommunication carrier, as set out in the Radiocommunication Regulations. All of its officers and directors are Canadian citizens, more than 80% of its voting shares are owned by Canadians, and Telesat is not in any way subject to foreign control. The Declaration of Ownership and Control of the Applicant (contained at Appendix C of the Call for Applications) and associated documentation may be found at Appendix 2 of this volume.

Telesat Canada 3-2 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

4.0 FINANCIAL QUALIFICATIONS

“The Company is perceived as one of the leading satellite companies with a highly respected management team... Given Telesat's history of successful operations and its strong credit profile with financial institutions, we are highly confident that Telesat is very well positioned to finance its continued growth and expansion plans.” Daniel R. Coholan, Managing Director RBC Dominion Securities Inc. February 25, 2001 4.1 INTRODUCTION

Undertaking a satellite construction program places significant demands on a company’s financial resources. Telesat has demonstrated through the procurement of 14 satellites to date (13 of which have been placed into orbit and one of which is under construction) that it has the financial strength and flexibility, the support of the financial community, and the management expertise required to effectively implement substantial capital expenditure programs. Telesat has also paid close attention to protecting itself and its stakeholders against undue financial risk. As a result of its unique expertise and proven technical success, the Company is well-regarded in the insurance community. Such demonstrated financial strength and stability will be essential to successfully procure and launch a satellite for the 118.7° WL orbital position within the required milestone dates.

4.2 FINANCING

Telesat has substantial assets (in excess of $1 billion) and an established revenue base. Furthermore, Telesat’s existing capital structure is well diversified. The Company’s capital structure includes private and public debt, preferred shares, and common shares. Other sources of financing for the Company include its customers, through prepayment arrangements for satellite capacity, and satellite and launch services vendors, through deferred milestone payment programs.

Telesat’s common shares are indirectly 100% owned by BCE Inc. BCE, together with its subsidiaries and associated companies, is Canada’s largest telecommunications company. The Company’s preferred shares are cumulative redeemable auction perpetual senior preferred shares. These shares, which are non-voting, are held by Canadian financial institutions and are redeemable at Telesat’s option.

Telesat Canada 4-1 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Telesat has a BBB corporate credit rating from Dominion Bond Rating Service Limited (DBRS) and Standard & Poor’s (S&P) Ratings Group, a division of McGraw Hill Inc. Companies with a credit rating of BBB or better qualify as investment grade credits, and benefit from lower borrowing rates and greater market accessibility than non-investment-grade companies. Telesat is a public debt reporting issuer.

Telesat has a $250 million revolving credit facility with a syndicate of Canadian chartered banks. The facility is unsecured and ranks pari passu with the Company’s other unsecured debt. The facility expires in June 2003. Telesat has shown it is resourceful and creative in its approach to financing. For example, by selling its satellite capacity partially on a condominium basis, the Company has decreased its overall financing requirements and reduced its exposure to technological risk. Telesat had in excess of $150 million in customer prepayments on its books at December 31, 2000.

While leverage and other financial ratios are important in evaluating the credit worthiness of a company, the credibility of senior management within the financial community is also a key determinant. Telesat is recognized as a world leader in the satellite communications and systems management industry. This leadership has been recognized by the financial community and is reflected in the Company’s dealings with financial markets, rating agencies, and the banking community.

In combination, the Nimiq and Anik F1 programs required investments in excess of $700 million. Over the last three years, the Company has successfully completed these programs, while remaining in a strong financial position. Currently, the Company has sufficient cash flow, customer prepayment commitments, and existing credit facilities to complete construction of Anik F2. The Anik F2 program will require additional investment of approximately $575 million.

Further details of Telesat’s finances may be found at Appendix 3, which contains the audited statements.

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4.3 RISK MANAGEMENT

It is essential that satellite operators adequately protect the assets employed in the business, particularly the huge space segment investment. Telesat takes extreme care in its technical operations to minimize risk of satellite loss or failure. However, to further protect its equity and debt holders and to ensure the ongoing financial viability of the Company for its customers, Telesat also pays close attention to all aspects of financial risk management.

Satellite insurance procurement requires in-depth technical and regulatory expertise as well as insurance market exposure and experience. Over the past five years, Telesat has procured satellite insurance policies totalling in excess of $1 billion. All of Telesat’s in-orbit satellites are covered by policies that have been secured at attractive rates which reflect the confidence of the insurance community in Telesat’s technical abilities. The Company has extensive internal expertise and exclusive access to expert advice to support the risk management function. Indeed, the Company has for many years provided technical advice, on a consulting basis, to insurers such as Marham Consortium Management Ltd.

Satellites, launch services, and satellite insurance are typically all procured in U.S. dollars, whereas revenues for a Canadian satellite operator are primarily denominated in Canadian dollars. Telesat has foreign exchange lines in place and actively manages foreign exchange exposure for its satellite programs.

Telesat’s solid financial management and its reputation for technical excellence spanning over 30 years have contributed to the Company’s unique position as a small but successful satellite operator among much larger satellite operators around the world. Telesat’s strong financial qualifications and recognized technical expertise make it a compelling, home-grown success story. Given Telesat’s innovative plans, this success story will be further enhanced with the award of access to the 118.7° WL orbital slot.

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5.0 TECHNICAL QUALIFICATIONS “At all times Telesat has been very supportive of all activity we have initiated on behalf of the community. The staff has always responded promptly to requests for information and assistance…They have proven to be a professional organization in the provision of satellite services.” Scott Dawe, Executive Director Marine and Mountain Zone Corporation Port aux Basques, Newfoundland and Labrador January 22, 2001

5.1 INTRODUCTION

Over almost 30 years, Telesat has built an impressive reputation for developing and delivering state-of-the-art satellite services to Canadians. Today, Telesat serves the telecommunications needs of a wide range of customers in the voice, data and broadcast markets. Telesat has all of the technical skills and experience to ensure that the requirements and schedule, as outlined in the Call for Applications, are successfully met.

This section provides an overview of the evolutionary development of Telesat satellites, and presents the services and technical innovations offered to Canadians by Telesat since its inception. Also described are the key technical resources within Telesat that will be marshalled to fully meet the technical requirements and program schedule for the successful operation of Telesat's satellite at the 118.7° WL orbital position.

5.1.1 Telesat’s Satellites

Telesat has an enviable international reputation as a world leader in satellite systems procurement, launch and operations, and has an unblemished record of success. Telesat has procured and successfully launched and operated 13 Canadian geostationary satellites, one more is under construction, and another will soon be in the procurement stage. Telesat has never permanently lost any of its own satellites.

An overview of Telesat’s satellites (past, present and planned) is furnished in Table 5.1. A full description of the satellite proposed for the 118.7° WL orbit position is contained in Volume 2.

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Table 5.1 Overview of Telesat Satellites

Orbital Prime Contractor Radiated Mass Payload Launch Satellite Launch / In-Service Dates Position Coverage & Bus Power (kg) Transponder Vehicle Anik A1 Retired Canada Hughes Aircraft 35 dBW 295 12 C-band Delta November 1972/ January 1973 A2 Retired HS 333 12 C-band April 1973/ August 1973 A3 Retired 12 C-band May 1975/ November 1975 Anik B Retired Canada RCA 36 dBW 474 12 C / Delta December 1978/ February 1979 RCA 3000 4 Ku-band Anik C3 Retired Canada & parts of Hughes Aircraft 45 dBW 563 16 Ku-band Shuttle November 1982/ January 1983 C2 Retired United States HS 376 (half Canada) 563 16 Ku-band Shuttle June 1983/ July 1983 C1 Sold HS 376 563 16 Ku-band Shuttle April 1985/ April 1989 Anik D1 Retired Canada & parts of Spar Aerospace 37 dBW 633 24 C-band Delta August 1982/ September 1982 D2 Retired United States HS 376 24 C-band Shuttle November 1984/ November 1986 Anik E2 107.3° WL Canada & parts of Spar Aerospace 48 dBW @Ku 1781 24 C / Ariane April 1991/ September 1991 E1 111.1° WL United States GE 5000 38 dBW @ C 16 Ku-band Ariane September 1991/ November 1991 24 C / 16 Ku-band Nimiq 91° WL Canada & United Lockheed Martin 46 dBW 3600 32 Ku Proton May 1999 States A2100 (BSS) band Nimiq 2 82° WL Canada & United TBD 46 dBW TBD 32 Ku TBD 2002/2002 States (BSS) band Anik F1 107.3° WL North & South Hughes Aircraft 42/46 dBW @ 4570 36 C / Ariane November 2000/ February 2001 America HS 702 C/Ku (North 48 Ku-band America) 41/46 dBW @ C/Ku (South America) Anik F2 111.1° WL North America Hughes Aircraft 42/46 dBW @ 5500 52 Ka-band Ariane 2002/2003 HS 702 C/Ku 24 C /32 Ku-band 56/59 dBW @ Ka Anik F3 118.7° WL North America TBD Refer to Vol. 2 TBD Refer to Vol. 2 TBD Late 2004 or early 2005

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5.1.2 Telesat’s Services - A History of Connecting Canada

Prior to 1973, telecommunications services across Canada relied upon terrestrial microwave systems for the distribution of voice, data, television and radio programming across southern Canada. Services to the more northerly and remote regions of Canada had to rely upon a mixture of low capacity landline, or High Frequency (HF) radio facilities to provide even the most basic of services. Television programming to the North was provided by means of pre-taped material flown into the northern communities for play-back on small community broadcast transmitters. Radio services relied for the most part on spare telephony trunks to provide basic radio services.

The inauguration of Telesat’s satellite network in 1973 meant that, for the first time, Canadians in the North were able to view CBC Television programming at the same time as other Canadians in the South. CBC Radio listeners were treated to higher quality sound. Also in 1973, the CBC’s national network distribution for both radio and television was carried for the first time by satellite. Network services were provided to all major regional centres across southern Canada, as well as to several northern communities, appropriately adjusted for time zones and regional content.

1973 - Telesat served 37 communities in Canada

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In January 1973, the first reliable, long distance telephone service to Resolute Bay and Frobisher Bay (now Iqaluit) was established over satellite, replacing radio circuits. One month later, the first of several ‘Thin Route’ services was provided to Igloolik and Pangnirtung, providing long distance service to these communities for the first time. Using the Anik A1 satellite, telephone subscribers in the North were able to make long distance calls to the South over satellite toll trunks providing the same quality as those in the South, with the added benefit of increased reliability. Also in 1973, a 960-circuit message service between Toronto and Vancouver was introduced to provide additional capacity to the existing terrestrial-based toll trunk network.

In 1974, Telesat inaugurated service for the Canadian Overseas Telecommunications Corporation (now Teleglobe). This service was used to interconnect overseas long distance calls from central and western Canada to the transatlantic cable terminating near Halifax. By November of 1974, CBC had commenced its ‘accelerated coverage’ plan to extend the reach of CBC network programming to many more of the smaller communities in the North than had ever been reached previously. All communities with a population of over 200 people were provided CBC Network Television programming, while communities of over 500 people were provided CBC Radio programming.

With the establishment of major satellite earth stations across Canada, Telesat began to implement ‘transportable’ earth stations for TV transmission as well as remote/transportable telephony transmission.

In 1976, working with the CBC, Telesat relayed live remote television transmissions from Banff, Alberta, the site of the Provincial Premier’s Conference. Later that year, Telesat’s satellite facilities also played a major role in providing live television coverage for the Olympic Games held in Montreal.

In 1977, a six-month pilot project was initiated to provide a video teleconference link between Calgary, Toronto and other cities. This was the first video conferencing link of its kind and proved to be the forerunner of one of today’s common applications of satellite communications technology.

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In 1978, within hours of the crash of a Russian nuclear powered satellite in the Northwest Territories (NWT), Telesat installed a transportable telephony earth station for the coordination of recovery activities. A year later, Telesat had 19 such transportable telephony earth stations in operation throughout the country. Global and CTV television networks made the move to satellite transmission in 1978, both making extensive use of satellite transmission for news gathering and program Transportable telephony earth station - coordinating international recovery efforts syndication purposes.

With the launch of Anik B, Telesat’s move into the 14/12 GHz Ku-band began. Initially, experiments were carried out in close co-operation with the Communications Research Centre. By 1980, the French language broadcaster SETTE began commercial programming services to 25 locations throughout Quebec using this new technology. In the same year, the Knowledge Network and TV Ontario began English Telesat and CRC - a close partnership language educational programming services, also using Ku-band. Telesat introduced a special discounted tariff in order to promote the use of satellites by regional and educational broadcasters. Also in 1980, the Globe and Mail began to use data transmission of their national edition to printing plants in Montreal and Calgary, to enable the timely daily distribution of the Globe and Mail across Canada.

Commencing with an interim service in 1981, Cancom began a new era in the distribution of television programming in Canada. With the distribution of three off-air signals of Canadian independent stations, remote and under-served communities across the country were provided with additional programming choice. Coupled with the relaxation of regulations allowing private ownership of satellite earth stations, the concept of satellite-to-cable or satellite-to-home distribution blossomed. By 1983, this concept had been further developed, with the introduction of Pay Television in Canada using the newly-launched Anik C satellites, which provided Ku-band service on a commercial basis. As a result, by the end of 1983, a full complement of Canadian programming was available on Telesat satellites: the CBC, educational networks, Pay TV services, and Canadian

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independent stations. The use of Ku-band satellite TV transportable earth stations developed into a flourishing business.

In 1984, Telesat introduced the teleport concept which would first be applied to carry the new Canadian specialty services. Given the developing market for the uplinking of television programming from major centres, Telesat developed an infrastructure of teleports (major earth station facilities within an urban centre) with the first such facility in Toronto. The Toronto Teleport began carrying the new specialty services such as MUCH MUSIC and The Sports Network in September 1984. The teleport network was later expanded to include Montreal, Edmonton, Calgary, Vancouver, Ottawa, Iqaluit and Halifax. Encryption services were introduced to protect the specialty signals from unauthorized reception.

Also in 1984, Telesat established a leading-edge Time Division Multiple Access (TDMA) system connecting Imperial Oil locations in Toronto, Calgary, Norman Wells, and Tuktoyaktuk, Northwest Territories.

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Telesat developed and launched a new service for the radio market, named RadioNet, in 1985. This service provided low-cost, satellite-based networking capability that would have a significant impact on radio broadcasting in Canada. By 1986, the CKO radio network had implemented an all-news national radio network with stations in every major city across the country, all linked together by means of RadioNet. A few years later, Telesat customer Novanet launched a service to provide audio and data distribution services from the Toronto Teleport. Through this satellite network, news and program syndication services are furnished to individual radio stations across the country, marking a major change in the way radio stations operate.

A contract to engineer, furnish, install, and maintain a network of 70 stations used to distribute meteorological information was awarded by Canada's Atmospheric Environment Service to Telesat in 1985.

Telesat, in 1986, introduced Anikom 1000, a nationally available T-1 carrier service, designed to provide high-capacity digital data streams for businesses and government. The Hudson’s Bay Company was the first customer for this service. In 1987, Telesat introduced Anikom 500 which extended the benefits of satellite data transmission to lower volume private network users requiring speeds between 56 and 512 kilobits per second (kbps). Telesat’s customers for these new services included Canadian Tire Corporation, Home Hardware, the Toronto Sun, Imperial Oil, and CP Limited. Also in 1987, Telesat introduced the Anikom 200 Very Small Aperture Terminal (VSAT) service, providing two-way interactive data transmission at speeds of up to 64 kbits/sec. Direct installation on customer premises provides Anikom 200 users with a competitive alternative to terrestrial facilities, avoiding local loop bottlenecks, extra costs and provisioning delays. The low cost, small size and dependability of VSATs make satellite communications practical for both large and small organizations.

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In 1988, CTV made the decision to transfer its network television distribution from terrestrial microwave to Telesat’s satellite facilities. Since that year, all of Canada’s national television signals have been distributed by satellite. Occasional use services doubled in 1988. Significant events such as the Calgary Olympics, the Federal Election and the G7 Economic Summit in Toronto, all relied extensively on the use of satellite facilities for their transmission.

In 1989, the Banque Nationale contracted with Telesat for Canada's first national VSAT banking network.

As part of Telesat’s continued support of new technology development, Telesat began its Advanced Television Experimental Program in 1989. Advanced Television (or High Definition Television) was, and is still, seen as a technology relying heavily on satellite distribution for its success. In order to foster its development, Telesat constructed the world’s first mobile High Definition HDTV mobile production facility Television (HDTV) mobile production facility. With a series of HDTV events and demonstrations, Telesat was in the forefront of the development of this new technology. Telesat’s conventional broadcast marketplace also continued to grow in 1989 with the addition of CBC Newsworld and Réseau Des Sports.

1990 and 1991 were years of significant expansion for Telesat's VSAT network, with large networks established for Transport Canada, Energy Mines and Resources, Ducks Unlimited, and Chevron Canada.

In support of the major terrestrial carriers in Canada, Telesat provided a diversity and restoration service for the Canadian telephone industry’s fibre network for several years in the early 1990’s, pending completion of a second nationwide fibre route. At the same time, telephony service to remote communities was modernized and expanded with the introduction of Anikom Access. Telesat worked very closely with its customer, Bell Canada, to transform a product that had been designed for private network use to the more rigourous demands of network telephony.

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In 1992, Telesat again led the way with the test and development of Digital Video Compression (DVC) technology, and initiated North America’s first field trials with Canadian program providers. It was quickly seen that, with this new technology, opportunities opened for new Canadian broadcast services, as transmission efficiencies increased and costs were lowered. Also in 1992, Telesat implemented the first technology trials to determine the earth station antenna size required for DTH reception of digitally compressed programming services. In order to meet the continued growth of the burgeoning Canadian broadcast business and its demand for capacity, Telesat developed and introduced new commercial services based on DVC technology. Beginning in 1995, services were gradually transferred from the analogue technology that had been in use for over twenty years, to the new DVC technology. The introduction of DVC not only allowed customers to expand and grow their existing services, but also provided the opportunity for the Canadian Radio-television and Telecommunications Commission (CRTC) to license even more specialty television services, increasing programming choice to all Canadians.

DVC also enabled Star Choice and ExpressVu to launch their DTH businesses based on the use of Telesat’s facilities in 1998. In May 1999, Telesat’s high-power BSS satellite, Nimiq, was launched, with ExpressVu transferring its service to that satellite. Currently, Star Choice and ExpressVu DTH services reach a total of approximately 1.3 million Canadian households.

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In 2000, Telesat’s initiative and technological innovation allowed the CBC to adopt the newest and latest technological advances for their conversion to DVC, with significantly increased capacity. The CBC now operates one of the most advanced DVC satellite networks in the world, using Telesat facilities and expertise.

Telesat is building the foundation for further growth in its services to Canadians. Examples of Telesat's commitment to Research and Development are given in Section 5.5 of this volume.

2001 - Every Canadian has access to Telesat services

5.1.3 Technical Innovations - Keeping Canada in the Lead

Telesat’s history is accented with a series of technological firsts in the satellite industry (see Table 5.2) - a series of firsts that has ensured that Canadians, regardless of their location, have had access to the most innovative services in the world.

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Table 5.2 Telesat Firsts

Telesat Milestones 1972 Launch of Anik A1 - World’s first commercial domestic communications satellite in geostationary orbit. 1973 Start of Commercial Services - Operation of world’s first national satellite television system. 1976 Development & implementation of world’s first commercial Time Division Multiple Access (TDMA) system. 1977 Implementation of the world’s first earth station employing spatial site diversity at Eureka on Ellesmere Island. 1978 Telesat launches world’s first domestic dual-band satellite. 1980 Telesat begins world’s first commercial Ku-band service. 1981 Telesat is world’s first satellite operator to collocate two satellites in a single orbital slot. 1982 Telesat’s Anik C3 is world’s first commercial satellite to be launched from Space Shuttle. 1983 Telesat develops Canada’s first DTH business model. 1985 Telesat develops and successfully implements ‘storage orbit’ for Anik C1 and C2. This innovative manoeuvre is later used by other operators. 1989 Telesat inaugurates its new satellite monitor & control facility in Ottawa, the world’s most advanced satellite control facility. 1991 Telesat successfully rescues Anik E2 from operational failure; Telesat’s satellite recovery was recognized by several prestigious international awards. 1992 Telesat begins North America’s first digital video compression market trials. 1994 Telesat recognized internationally for dramatic recovery of Anik E2 using Ground Loop Attitude Control System (GLACS) developed and implemented by Telesat. Anik E2 remains the only satellite in the world to continue

operating after the loss of main and back- Space Mission Recovery Award from up momentum wheels. La Réunion Spatiale 1999 Telesat’s Nimiq satellite begins commercial service as Canada’s first DBS satellite. 2000 Telesat begins construction on Anik F2 incorporating North America’s first Ka-band multimedia payload with on-board processing.

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5.2 TELESAT’S ENGINEERING EXPERTISE

Telesat’s outstanding record of success has, to a large extent, been driven by the capabilities and experience of its engineering resources. This cadre of engineers and technologists, many with skills unique in Canada, is at the foundation of Telesat’s plans to implement a successful program to fully develop the 118.7° WL orbital position.

5.2.1 Systems Engineering

Beginning with a core group of its original employees in 1969, Telesat has built and maintained a world-class group of system engineers responsible for the design and integrity of the entire satellite network - both earth and space segments. Their tasks have been to analyze earth/space tradeoffs, develop link budgets, assess service quality and availability, ensure equitable treatment of all customers through traffic planning, and minimize intra- and inter-system interference. Close contact with customers is essential for undertaking such systems design work. Liaison is carried out informally through telephone and face-to-face meetings, as well as through formal presentations to individual customers and industry associations.

Today, this work is undertaken by highly trained individuals who possess extensive experience in satellite communications.

5.2.1.1 Traffic Planning and Systems Design

Telesat offers a variety of standard services, as well as special-assembly designs in response to the procurement needs of governments and industry. Telesat’s Traffic Planning and Systems Design Division has the overall responsibility for specifying appropriate design guidelines and parameters to be used by both customers and Telesat to ensure optimum performance for each service type.

The Division also produces the system designs for the standard services that Telesat provides to its customers. These designs take into consideration the characteristics of typical earth stations and the effects of interferences from other channels, both on the same satellite and on satellites in adjacent orbital positions. Such design work requires

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experienced engineers who have a thorough understanding of earth station and systems designs, performance specifications, inter and intra-satellite interference analysis, and terrestrial interference analysis. Canadian customers and businesses have greatly benefitted from the extensive knowledge of Telesat’s system engineers, many of whom have decades of experience in satellite communications. Telesat’s Network Engineering Division provides direct support to sales staff and to customers for the specific services to be provided. They carry out customized design work and hardware selection and oversee the installation and initiation of new services. The Division has also been successful in winning a number of significant projects outside of Canada, leveraging Telesat’s considerable domestic expertise into export opportunities abroad.

5.2.1.2 The Traffic Planning Committee

Traffic planning is an on-going process through which a satellite system operator is able to meet and plan for customers' space segment capacity needs. The primary objective of the process is to maximize space segment utilization. However, achievement of this objective is complicated by the fact that the available space segment capacity and the orbital arc resources are shared between many users. Responsible and effective traffic planning therefore involves tradeoffs between the service needs of the customer, the business and economic needs of the operator, and the technical constraints imposed by the sharing of spectrum with other users.

Responsible traffic planning ensures achievement of customer needs

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In 1992, Telesat Canada became the first company in the world to operate a domestic geostationary satellite communications system. Since then, Telesat has developed considerable experience in traffic planning and has established fundamental principles to guide as well as simplify the process. Enforcement of these principles is the responsibility of the Traffic Planning Committee, which regularly reviews capacity allocations and resolves related customer and satellite problems as they arise. Telesat has provided training courses and instruction in this area to other satellite operators around the world as part of its consulting activities.

The Committee is also responsible for other areas such as developing restoration plans for potential emergency situations as well as planning for satellite replacement and traffic transfers between satellites. Major decisions require the approval of the Company's senior management and issues requiring extensive investigations are handled off-line by ad hoc working groups which report to the Committee. The Committee carries out its mandate subject to guidelines defined by the Radio Regulations of the International Telecommunications Union (ITU), international coordination agreements with foreign satellite operators, Canadian regulatory policy, system design considerations, inter- and intra-satellite interference limitations, customer specific requirements, and many other operational constraints.

Traffic transfers are meticulously planned

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Given the wide range of issues that have to be addressed, the Committee membership represents a cross-section of Telesat's expertise, and is selected from senior levels to facilitate decision-making. Systems design considerations are covered by members of Telesat’s Traffic Planning Division. A Satellite Systems representative advises the Committee on the health of Telesat satellites and on any constraints required to maintain satellite performance. A Network Services Department representative is responsible for network maintenance issues, traffic monitoring and the technical interface to the customer. A Network Engineering representative reports on problems and progress with respect to new service implementation and ensures that constraints imposed by earth station hardware on traffic assignments are taken into account. An International Coordination member advises the Committee when coordination agreements with foreign satellite system operators may affect traffic assignments and also works to modify such agreements, where possible, to minimize the impact of such restrictions. A sales representative identifies near-term capacity requirements as well as longer-term forecast requirements as inputs to the development of traffic assignment plans. A regulatory representative advises the Committee on issues of a public policy and regulatory nature.

In summary, the important process of traffic planning requires a wide range of expertise to enable quick resolution of all of the issues which may arise. The multi-disciplined Committee provides a forum for discussion and resolution of these issues by quickly focusing the required expertise on the problem. At the same time, the Committee provides the documentation of various traffic planning activities which are critical inputs to other areas of the business, such as billing, customer interactions, network operations and emergency planning. All of the pertinent information and plans are recorded in the Traffic Planning Document which is a continuously updated reference manual for capacity allocation guidelines and restrictions, current assignment plans, future assignment plans, satellite configurations, emergency restoration plans, etc. This information is also made available to the Emergency Committee.

5.2.1.3 The Emergency Committee

The Emergency Committee is convened in response to an unforeseen event that has the potential to seriously disrupt Telesat’s services to its customers. Telesat’s Emergency Committee is comprised of senior representatives of all Telesat departments. It has been

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consistently demonstrated that the combined experience and creativity of members of Telesat’s Emergency Committee is the most effective way to minimize or eliminate service disruptions. The mandate of the Committee is not only to resolve or minimize the technical impacts of the event, but also to initiate consultations with customers, senior government officials, and the media, as well as with other satellite operators when temporary replacement capacity is required.

The work of the Emergency Committee is facilitated by the maintenance of databases containing traffic planning information, technical details of Telesat’s earth and space segments, and contact lists. Members of the Emergency Committee work closely with Telesat's customers to ensure that the most effective and efficient restoration plans are in place.

To ensure that the Emergency Committee functions smoothly in the unlikely event of a real emergency, simulations are carried out from time to time to test the response of the Committee to a hypothetical situation. A member of Telesat’s Executive Management develops and monitors these simulations.

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5.2.1.4 Access Engineering

Access Engineering is a process whereby Telesat ensures that earth stations accessing its satellites have appropriate technical specifications and systems parameters to operate without causing harm to the satellite itself, to other services on the satellite, or to services on adjacent satellites. This applies to all customer-owned earth stations as well as to those owned by Telesat. In addition, the granting of Telesat’s Access Agreement requires the earth station operator to adhere to the technical parameters they have provided and to cease transmission should their station be the cause of interference into other services.

Telesat requires that earth station operators submit technical parameters and operating characteristics of each transmitting earth station. Prior to approval of an Access Request, this documentation is reviewed by Telesat’s competent systems engineer to determine if there could be any adverse effects from the station’s transmissions. In many cases, further information must be solicited from the customer to clarify the system design and operating parameters. In some instances, testing may be carried out on the earth station to ensure that it complies with the submitted information. In addition, all TV transmit earth stations are required to undergo testing.

Telesat's Satellite Access Agreement is tied to, or directly related to, the earth station operating licence issued by Industry Canada. Access approval from Telesat is a condition for licensing any earth station that accesses Telesat space segment.

Telesat’s access process continues to be an extremely important safeguard that serves to maintain the integrity of the Canadian satellite system and to ensure that Canada's international commitments are met.

5.2.1.5 Frequency Coordination

Due to the broad coverage of satellite footprints, frequency coordination of both earth and space segments is of critical importance to any satellite operator. Closely related to this is the need to be familiar with, and participate in the evolution of, the Radio Regulations and associated technical work of the ITU.

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To that end, Telesat undertook to develop in-house expertise, rather than rely on external consultants, in the critical frequency coordination field. Today, Telesat has a director, three technical specialists, and support staff who are dedicated full-time to frequency coordination and ITU-related work. These resources are supplemented, as required, by a Telesat senior technical specialist and a senior Telesat dedicates in-house resources to frequency coordination manager from Telesat’s sister company, TMI Communications. Together, these six professional engineers have more than 75 person-years of experience in frequency coordination and ITU work, and close to 100 person-years total experience in satellite communications. This expertise has served Telesat and Canada well in protecting valuable spectral resources. Indeed, Canada would not have the orbital resources it enjoys today, without Telesat's efforts and active support of Industry Canada. Furthermore, international coordination expertise has enabled Telesat to secure consulting and training assignments abroad that are often the first step in export opportunities for the Canadian satellite industry and that also establish new professional contacts for ITU activities.

Telesat, from its earliest days, has been active in developing criteria and methodologies for spectrum sharing between satellite and other services. From the early work on sharing with the terrestrial radio relay stations at C-band, to today’s activities relating to sharing of high density satellite and fixed services in bands above 15 GHz, Telesat has been committed to developing the most efficient means of using the radio spectrum. Telesat was a founding member of the Frequency Coordination Systems Association (FCSA) and has served on its committees and executive. The FCSA greatly facilitates domestic frequency coordination within Canada. Telesat has also been active in the Radio Advisory Board of Canada (RABC) and actively supports the RABC mandate of providing advice to Industry Canada on radio matters. Currently, a Telesat officer is a member of the RABC Board and Telesat is an active participant in the Fixed Wireless Communications Committee.

Internationally, Telesat has worked very closely with Industry Canada and its predecessors in international forums. Telesat is a Sector Member of the ITU and has attended ITU World Radio Conferences (WRC) as part of the Canadian delegation in 1971, 1977, 1979, 1983, 1985, 1987, 1988, 1992, 1995, 1997 and 2000. Telesat staff is very active at these conferences, often chairing drafting groups, and providing advice and support to Industry Canada. Telesat has also participated in the technical work of the Radiocommunication

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Sector of the ITU (ITU-R), particularly in Study Group (SG) 4 and its Working Parties, but also in SG 6, SG 8, Joint Working Party (JWP) 4/9S and other Working Parties, Task Groups and Rapporteur Groups. This ITU work is supplemented within Canada by Telesat’s participation in the ITU-related Canadian National Organizations (CNOs), such as the CNO ITU Executive Committee, the CNO WRC preparation committees and subcommittees, and the ITU-R National Study Groups.

With the growing role of regional organizations in radio communications, Telesat has joined the Radiocommunications Permanent Consultative Committee (PCC-III) of the Inter-American Telecommunication Commission (CITEL) as an Associate Member, and has participated in the two most recent meetings of PCC III as part of the Canadian delegation. Telesat, through its Ottawa office and also through its staff located in South America, plans to remain active in this important regional forum.

Telesat has been a key contributor in preparing satellite filings for eventual submission by Industry Canada to the ITU. Indeed, the filings that established the basis for operating at C and Ku and Ka-bands at 118.7° WL were prepared by Telesat. It is through the close cooperation of Telesat and Industry Canada staff over the years that Canada was able to secure four well-positioned orbital positions at C and Ku-band in the Canada/USA/Mexico Trilateral Arrangement, as well as timely filings at critical orbital positions in the Ka and V-bands. Telesat has also participated with Industry Canada in securing amendments to the Region 2 BSS Plan to enable the coverage of all Canadian households, and indeed all of North America, from two of Canada’s orbital positions in the Plan.

Telesat has also been diligent in protecting the Canadian filings, through review of the ITU’s International Frequency Information Circulars (IFICs), and in its operator-to-operator coordination activity. Again, in close cooperation with Industry Canada staff, Telesat has reached a comprehensive coordination agreement with Satmex of Mexico - a difficult task that required detailed analysis conducted over a period of nearly three years. Telesat has also reached coordination agreements with the major operators in the United States and, with the liberalization of the WTO/GATS agreement, has been actively coordinating with other operators having ITU filings in the arc of interest.

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In international coordination activity, only Telesat has the benefit of 30 years’ close cooperation with Industry Canada, access to experienced systems and spacecraft engineers, and, first and foremost, a dedication to securing sufficient orbital and spectrum resources for Canadians. Telesat's expertise and personnel will be needed if Canada is to maintain and expand its access to spectrum - the raw material for growth in the satellite Telesat supports Industry Canada in ITU activities business.

5.2.2 Space Segment Engineering and Operations

5.2.2.1 Introduction

A well-designed and carefully operated space segment is the key to success in the satellite communications business. When Telesat was established, the necessary skills were not available and a deliberate decision was made to develop an in-house staff with the required expertise. This decision has proved to be extremely beneficial, in terms of Telesat’s ability to stay abreast of developing technology, to maintain independence from spacecraft suppliers, and to promote the opportunity to export Canadian know-how to satellite operators around the world.

Telesat has procured and successfully launched 13 Canadian satellites. This, coupled with more than 29 years of smooth satellite operations, has made Telesat one of the world’s leading satellite authorities. Telesat possesses the expertise necessary to get a satellite system ‘off the ground’ and sustain it through its useful life. This highly sought-after experience will be applied to meet the demands of the program for the satellite to be launched into the 118.7° WL orbital position.

5.2.2.2 Satellite Procurements

The skills required to manage a satellite procurement program are complex and highly specialized. Telesat is one of the few companies in the world that has developed this unique expertise as a result of its own programs and of having successfully consulted on more than 82 satellite programs over the past 30 years. These include 14 satellites (13 launched and one under construction) for Telesat's own requirements and more than 68 satellites for other satellite operators in over 26 countries.

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Telesat is very proud of the fact that it has neither permanently lost a satellite in-orbit nor ever experienced a launch failure on any of the programs it has supported. Telesat’s extensive procurement experience has brought it into contact with every major spacecraft manufacturer and launch vehicle provider.

An overview of Telesat’s past and current satellite procurements is given in Table 5.1 - Overview of Telesat Satellites. Further detail on Telesat’s international consulting activity is given in Section 7 of this volume.

Anik F1 at the Ariane launch facility in Kourou, French Guiana i) Procurement Monitoring

Telesat monitors all critical aspects of the spacecraft development to enable early identification of potentially serious engineering or schedule problems so that corrective actions are taken to minimize the impact on performance, cost and schedule.

Telesat also assesses the schedule and technical performance status by participating in regular program status, technical status and management review meetings. The Telesat team reviews all relevant program information to ensure any potential problems are identified and effective corrective action is taken.

Telesat's satellite procurement management is based upon the following principles:

· Telesat will effectively monitor the program without disruption to the contractor, with the ability to monitor down to units and parts level in high risk/problem areas and

· Telesat will, when required, involve its technical and operational resources to benefit from experience gained over several generations of satellites.

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Telesat’s procurement monitoring approach is designed to ensure that the satellite design, construction, and testing meet the requirements of the spacecraft procurement specification and the overall objectives of the program. Selected professional engineers from Telesat provide the monitoring service skills in the specialties needed. They include:

· Systems and Bus Payload Integration and Testing; · Payload Hardware Performance; · Antenna Subsystems; · Payload Engineering; · Bus & Launch Vehicles; · Bus Subsystems; · Attitude Control; · Thermal/Mechanisms; · Satellite Dynamics; and · Tracking Telemetry and Command (TT&C) Ground Systems Engineering. As Telesat is in the business of operating satellites, satellite monitoring is approached from an operator perspective. The monitoring goal is to ensure that Telesat procures a long-lasting, healthy satellite.

ii) Telesat Program Management

In Telesat’s experience, the most cost-effective approach to satellite monitoring is to have one or two resident engineers permanently on-site at the contractor’s facilities, supported by a multi-disciplinary core team and a Program Manager based at its headquarters. This team becomes intimately familiar with all aspects of the satellite program. The core team consists of specialists in each of the key space disciplines who support the activities of the resident engineers at the contractor’s plant during specific events, such as design reviews, testing, and integration activities.

The Telesat resident engineers monitor all design, manufacturing, assembly and test activities at the manufacturer’s facility. Telesat resident engineers review the design (i.e. at the Preliminary and Critical Design Reviews and at the Pre-Shipment Review) and

the documentation in order to determine the status of Anik E1 at the manufacturer's facility the hardware with respect to the specifications.

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During the spacecraft construction period, the Telesat resident engineers monitor the assembly, acceptance testing, selected analyses and integration activities on the spacecraft. The qualification and flight acceptance data are reviewed for compliance with the performance requirements, and, as part of this process, the spacecraft configuration is verified, the status of contractual tests determined, and the satisfactory closure of all anomalies or failures ensured.

The Telesat resident engineers also support the launch campaign and provide engineering support at the Telesat Satellite Control Facility to support in-orbit tests and performance verification of the payload and bus systems.

Telesat’s Program Manager is the main point of contact with the contractor’s Program Manager and oversees all Telesat activities on the program.

Telesat requires that the contractor hold Quarterly Management Reviews to brief Telesat senior management on the program status and provide recommendations on actions to be taken to minimize risk. The Telesat Program Manager also prepares periodic reports, when required, to cover outstanding issues including design, schedule, performance, and manufacturing concerns. Weekly progress review conference calls are also held between the resident engineers and the core team at headquarters to allow issues raised in the reports to be discussed.

iii) Design Assurance

Telesat participates in all Design Reviews to determine the status of the spacecraft design. This involves reviewing all the spacecraft specifications and any related test data to ensure consistency and compliance with the overall space segment performance requirements of the contract. This work is typically carried out upon receipt of the Design Review data package. Key specialists in each of the subsystem areas, product assurance, and reliability, attend and participate at the design reviews.

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iv) Assembly, Integration and Test

During the spacecraft construction period, Telesat monitors the assembly, acceptance testing, and integration activities of the spacecraft. Telesat also reviews the qualification and flight acceptance data for compliance with the performance requirements and attends the associated reviews. Upon completion of the test

program, a Pre-Shipment Review is Anik E2 being prepared for shipment to normally conducted by the contractor to Kourou, French Guiana obtain authority to ship the satellites to the launch site. As part of this process, Telesat participates in the verification of the spacecraft configuration, the status of contractual tests, and the satisfactory closure of all anomalies or failures.

v) Spacecraft Performance Verification Program

Telesat requires that the contractor establish and manage a performance verification program. This program provides for the qualification, protoflight or acceptance verification of spacecraft equipment at the unit, subsystem, and spacecraft system level. The performance verification program includes those tests and analyses necessary to demonstrate compliance with the technical specification for the spacecraft.

vi) Life Tests

Telesat monitors detailed life tests which are performed on units with identified wearout and degradation mechanisms, such as battery cells, thrusters, solar cells, solar array drives, gyros, and Radio Frequency (RF) power amplifiers.

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vii) Launch Operations

Telesat typically procures its own launch vehicle from the launch agency and manages the interface in conjunction with the satellite contractor. For the launch campaign, Telesat accompanies the spacecraft to the launch site. A small team of specialists monitors the activities carried out on the spacecraft and the launch vehicle through to separation. These activities are centered on the spacecraft functionality.

Nimiq at the Baikonur facility viii) Product Assurance in Kazakhstan

Telesat requires that the contractor have an active Product Assurance (PA) organization. Telesat Product Assurance representatives participate in the contractor’s PA meetings. Specifically, Telesat PA representatives attend those meetings which review high-risk or problem areas to ensure a satisfactory resolution of the issue.

5.2.3 Satellite Operations and Ground Support Infrastructure

Following a successful launch, close attention to the operation of the satellite in-orbit is required throughout its lifetime. Telesat's satellite operating ingenuity is recognized the world over. The Company has received numerous awards for its world-class operating abilities and continues to receive industry accolades.

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Past awards include:

· The 1998 Industry Innovator Award Society of Satellite Professionals International (SSPI);

· The 1994 Laurels Award (Aviation Week & Space Technology); and

· The 1992 Space Mission Recovery Prize (La Space Mission Recovery Award from Réunion Spatiale) La Réunion Spatiale

The 1998 SSPI Industry Innovator Award was given to Telesat for having restored commercial service on Anik E2 within six months of losing both momentum wheels on the satellite in 1994 due to an electromagnetic storm. This was achieved through a Ground Loop Attitude Control System (GLACS) designed and developed by Telesat engineers and the satellite manufacturer. GLACS is a ground-based system that determines and maintains satellite pointing through frequent, short-duration thruster firing. The E2 satellite was restored to full service with minimal loss of fuel and is still in operation today.

Telesat has followed a policy of maintaining a team of experienced managers and specialist engineers to ensure reliable service from its space segment. Being the first commercial domestic satellite operator, Telesat assembled a team of pioneers to build the initial system which made many innovations in the satellite control and operations fields. These include developing tight control over satellite position to permit operation without tracking earth stations. The engineering team has continued to improve the design and effectiveness of this control system, resulting in operating efficiencies not yet fully attained by other operators, and continues to be a leader in the development of satellite control systems. Allan Park, Ontario

Telesat has successfully operated 13 of its own satellites over a period of 29 years, including both spin and three-axis stabilized types. The Company has simultaneously managed multiple satellites and satellite generations, including satellites in normal operating assignments, collocated satellites, inclined orbit satellites, and satellites in storage orbits.

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Telesat is unique amongst commercial satellite operators in its approach to system construction. Instead of procuring costly new control systems for each new satellite, Telesat makes incremental additions to its existing system. Since the launch of Anik A1 in 1972, Telesat has expanded and modified its satellite control system to accommodate six satellite generations using the same control system platform.

Telesat is frequently approached by other satellite operators to provide consulting services in the field of space segment operations and satellite engineering. The expertise available includes documentation, software, training and support services for flight dynamics systems, launch and early operations, and mission analysis and planning.

Telesat continuously monitors the health and performance of its satellites from its state-of-the-art Satellite Control Centre (SCC) located at Telesat’s headquarters. Using advanced real-time and flight dynamics software developed in-house, satellites are monitored and kept in their proper orbital positions 24 hours a day, 365 days a year. This

SCC will be described in more detail below. SCC - the nerve centre of satellite operations

Telesat currently operates four satellites, Anik E1, Anik E2, Anik F1 and Nimiq for its own requirements and is under contract to operate the MSAT satellite for TMI Communications and the Anik C1 satellite for Loral Spacecom. In 2001, Telesat will also be operating two additional satellites for XM Satellite Radio, a U.S. digital audio radio service provider. Telesat is also under contract with Wildblue Communications Inc. to provide this U.S. company with the ground infrastructure and satellite operations support for its Ka-band satellite.

i) Satellite Control

The primary responsibility of Telesat’s SCC is to constantly monitor performance of the satellites and to maintain their orbit through the timely execution of thruster firing manoeuvres.

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Telesat’s SCC is located at its headquarters in Ottawa. This facility is comprised of Satellite Control Consoles, Status Boards, and a Satellite Engineering Console. The Satellite Control Consoles are equipped with all the facilities to command the satellites and monitor their performance. The Status Boards provide status information on all the satellites under Telesat’s control. The Satellite Engineering Console is used mainly during launch missions to monitor satellite health and attitude.

The SCC facility is staffed on a 24-hour, 7-day per week basis with four controllers on duty at all times. The satellite controllers who operate the consoles are engineering technologists who have undergone extensive training by Telesat specialists. Several satellite controllers have in excess of 20 years of operations experience. The SCC is the Telesat facility from which satellite control commands are issued. The back-up site is located at Allan Park, Ontario, approximately 120 kilometres northwest of Toronto. Telesat’s satellite controllers constantly monitor satellite data for anomalous situations and do the initial analysis and reporting of current and potential problems. All operations in the SCC are facilitated through Telesat’s strictly-controlled Satellite Operating Procedures addressing all normal and contingency scenarios. The SCC staff are also responsible for the training of new satellite controllers, and an extensive formal and on-the-job training (OJT) program has been developed and enhanced over 25 years of satellite operations.

Since its inception, Telesat has developed its own software for satellite control. This software has also been adapted for export. The major functions of the Telesat satellite control system are:

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· Telesat’s Real Time System (RTS), which provides all ‘front-end’ control capabilities. These include data acquisition and conversion to engineering units, spacecraft commanding, alphanumeric data displays, satellite controller operator interfaces, and spacecraft alarms.

· Telesat’s Scaleable Data Management (SDM) system, which provides support for ‘back-end’ telemetry archiving and distribution. Telesat’s flight recorders constantly gather raw data from the spacecraft. The raw data is forwarded to SDM for storage. In the event of a spacecraft anomaly, the raw data may be played back through a telemetry interpreter and converted into engineering units for close analysis by the spacecraft engineers.

Telesat’s satellite control system undergoes a continuous program of improvements and updates to accommodate new spacecraft technologies and advances in computer software and hardware.

ii) Satellite Engineering

Telesat’s satellite engineers are responsible for ensuring the health of the Company’s satellites and ensuring that the ground control system design is optimized to fully support in-service operations. Satellite engineers play a key role in the development and technical verification of all satellite operating procedures and are present in the Satellite Control Centre for all non-routine activities. Satellite engineers provide technical leadership for anomaly response and resolution, are responsible for payload reconfigurations approved by the Traffic Planning Committee, and have responsibility for all technical interfaces with the satellite manufacturer, once a satellite is in service. In the event of major satellite anomalies, the satellite engineers draw upon the expertise of the bus and payload subsystem engineers within Telesat, in addition to the assistance received from the satellite manufacturer. At a minimum, two engineers are assigned responsibility for each satellite bus type.

iii) Flight Dynamics

Telesat has developed its own technologically advanced Flight Dynamics System (FDS) to support all aspects of geosynchronous missions from transfer orbit injection through to arrival on-station, equatorial and inclined stationkeeping, orbit relocation, and eventual satellite retirement.

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The Telesat FDS is recognized throughout the world for its high- fidelity spacecraft models and its wide-ranging functionality. Telesat’s FDS was designed around the guiding principles of:

· maximizing the fuel life of geostationary satellites; · avoiding the violation of operational constraints; and · maximizing user-friendliness.

Telesat’s innovative software system has also been acquired by six other satellite operators in the United States, United Kingdom (U.K.), Germany and the United Arab Emirates (U.A.E).

The primary responsibility of Telesat’s Flight Dynamics Operations (FDO) Group is to stationkeep the fleet of satellites under Telesat’s care. Flight Dynamics Analysts design stationkeeping control strategies to maintain the attitude, latitude and longitude of geostationary satellites within established limits and to optimize fuel usage in planning manoeuvres to meet these objectives. This requires daily monitoring of the orbit and attitude estimation, with periodic updates of tracking station range biases and spacecraft solar array offsets. Manoeuvring of the three-axis spacecraft requires on-site monitoring, together with the spacecraft engineer. Currently, almost 200 orbital and 300 attitude/momentum manoeuvres are performed yearly. These manoeuvres must be planned in detail, be documented to keep the fuel estimate bookkeeping up to date, and then calibrated with the actual post-manoeuvre state. Periodic analysis of overall performance trends yields performance values that are used to predict satellite fuel lifetime from current bookkeeping estimates.

Occasionally, spacecraft relocations must be planned and monitored, with the attendant concerns of interference with other spacecraft operators. Towards a spacecraft’s end of life, fuel depletion concerns require monitoring of all manoeuvres, as do the final de-orbiting manoeuvres to take the spacecraft out of the geostationary arc.

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iv) Operations Support

In support of Telesat’s entire satellite operations system, the Company has in place an Operations and Consulting Support (OCS) team whose primary responsibility is the production and maintenance of all satellite operating procedures and manuals. The procedures have been vetted through Satellite Engineering and Flight Dynamics experts for technical correctness and then verified through a satellite simulator. The group is also responsible for interfacing with the satellite manufacturer for the coordination, scheduling and monitoring of all manufacturer-supplied training.

v) Telemetry, Tracking and Command (TT&C)

Telesat has an international telemetry, tracking and command infrastructure, with its primary station located at Allan Park. The Allan Park site is linked by dedicated communication landlines to Telesat’s Satellite Control Centre. Allan Park has an 11m dual-band monopulse tracking antenna and fixed Ku-band antenna systems that provide telemetry and command to the satellites.

Telesat has implemented a back-up TT&C facility in Edmonton, Alberta, collocated with the Edmonton Teleport communications TT&C antenna, Allan Park equipment. At Ku-band, the facility uses an 8m, limited-motion, step-track antenna to provide the capability for back-up command and telemetry functions, should Allan Park experience a catastrophic failure.

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Telesat also has a 7.3 m tracking station in Perth, Australia that is used primarily to conduct Transfer Orbit Services (TOS). This facility has been in regular operation since 1984. Additional TT&C facilities are located at Gnangara, Western Australia.

All these facilities, including electronics, associated RF buildings, interfacility links, power, and de-icing systems were designed, built, tested, and commissioned by Telesat. All equipment is provided with a Telesat-designed and built monitor Perth, Australia and control system for local and remote operations.

Using its worldwide TT&C network, Telesat controls its own satellites and also has the capability to provide primary and back-up TT&C services to other satellite operators.

Telesat has acquired almost three decades of experience with tracking, telemetry, command and ranging systems, beginning with the launch of Anik A1 in 1972. Telesat’s design and operational TT&C expertise has evolved with each generation of satellites thereafter. Telesat's experience in designing, building, testing, and operating its own TT&C facilities, in addition to providing worldwide tracking networks for a variety of international customers, has contributed to Telesat’s reputation for excellence around the globe.

vi) Control from Canada, by Canadians

Many of the services carried by Telesat’s satellites are critical to the nation. These include services for the Department of National Defence, the RCMP, Atmospheric Environment Service (AES), Nav Canada, the broadcast facilities essential to disseminating information in times of emergency, and critical communications links to many remote communities.

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In recognition of the importance of a highly reliable satellite network, command links to Telesat satellites are provided with encryption capability, and comprehensive physical and electronic security measures are in place to frustrate any malicious attempts to disrupt Telesat’s network.

Only Telesat has the facilities within Canada, controlled by Canadians, to ensure the secure operation of a Canadian satellite network.

5.3 TELESAT’S EARTH SEGMENT EXPERTISE

5.3.1 Introduction

Since 1969, Telesat has provided unique solutions to customers with demanding telecommunication requirements. Over the past thirty years, hundreds of clients have been provided with essential voice and data networks for primary communications or back-up to terrestrial services. Telesat has the necessary skill set to engineer, furnish and install private networks for large clients such as financial institutions, the automotive industry, retail enterprises, and the Government of Canada, as well as for the small enterprise with remote communication requirements beyond the reach of cost effective terrestrial alternatives.

In 1996 Telesat became ISO9001 registered in order to address the quality assurance requirements of its customer base.

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5.3.2 Teleport Infrastructure

In the mid-1980’s Telesat developed the Teleport concept in order to share common infrastructure costs amongst many users in a metropolitan area. Telesat’s network of teleports, with extensive fibre access, provides a shared resource that lowers the per-user costs of satellite communications. The current teleports are located in the major cities of Halifax, Montreal, Ottawa, Toronto, Calgary, Edmonton, and Vancouver, as well as in Iqaluit. Telesat has invested in teleports whenever there Calgary Teleport is sufficient customer demand to warrant a staffed location. Telesat makes use of terrestrial Asynchronous Transfer Mode (ATM), Frame Relay, and Internet Protocol (IP) networks to bring the customer signals to the nearest teleport. While all the teleports are equipped to carry basic services, each teleport is augmented with the unique infrastructure necessary to support regional requirements, such as: off-shore petroleum platforms in Halifax, French language content distribution in Montreal, corporate and internet access in Toronto, and

the oil, gas and forestry industries in the West. Montreal Teleport

Telesat’s teleports are a critical component of Canada’s broadcast infrastructure, being the portals through which virtually every Canadian broadcast signal is transmitted to Telesat’s satellites. The teleports also provide the critical link between remote communities and the communications infrastructure of the major cities.

5.3.3 Standard Services

In the late 1980’s, Telesat recognized the need to lower the per-user cost of satellite communications by establishing standard voice, data and video services. These services are based on the best-in-class hardware and software in the industry with continual improvements in efficiency and features that address the needs of the marketplace. Telesat has developed a number of standard service offerings that continue to develop and evolve to meet Canadian customers’ application requirements.

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Telesat’s standard services include:

· Anikom Select, providing high and low-speed two-way point-to-point and point-to- multi-point data links; · Anikom 200, (VSAT), providing lower speed, two- way interactive data networks (hub/multiple remotes); · FrameCast providing high-speed broadcast data; and · FrameCast Enhanced, combined with Anikom 200, providing high-speed outbound, complemented with low speed return channels.

Telesat standard services have made satellite communications more affordable and accessible to all Canadians.

5.3.4 Shared VSAT Hubs

Few Canadian enterprises are sufficiently large to support a dedicated VSAT system. Canada needed a shared-hub system that would not only share the satellite resources, but also accommodate the variety of data protocols used in the country. Telesat operates the largest shared VSAT system in the world, with six hubs in three major cities across Canada. Over the past twelve years, Telesat has installed and maintained over 4000 VSAT remote terminals throughout Canada, serving a wide range of needs from point-of-sale transactions to demanding back-office applications.

By making the investment in these VSAT hubs, Telesat has lowered the telecommunication costs of operating VSAT hub at Toronto Teleport remote offices for retail organizations, petroleum retailers, financial institutions, and many other Canadian enterprise clients.

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5.3.5 Shared Voice Network

In order to reduce costs for Canadian users, in the early 1990's, Telesat implemented the latest Demand Assigned Multiple Access (DAMA) technology to replace dedicated trunks for telephony circuits. The new DAMA technology enables the use of the satellite resources only for the duration of the call. With Canada’s multiple time zones, it became a natural fit for Telesat to offer a voice service that would substantially reduce the recurring costs of telephony traffic to remote areas. Telesat invested in the Network Control System (NCS) that controls the call routing and manages the satellite resource allocation.

Telesat worked with the system manufacturer over many years to provide the network management capabilities and North American signaling standards that enable Telesat to offer a voice service with a large market requirement in Canada. The evolution of the interoperability has grown from line signaling, to Private Branch Exchange (PBX) signaling, and finally to telco trunk signaling standards.

With trunk signaling support, Telesat offered the DAMA voice service to all the telcos in 1993, and by 1996 most of the major provincial telcos used the service.

In the late 1990s, Telesat developed the DAMA system even further to inter-operate with the most recent international telco switch-signaling standard of SS7, which enables the carriers to provide to remote Canadian communities the most recent features and services, such as caller identification, call transfer and call blocking.

Today, remote communities across Canada’s North enjoy the most modern telephony services as a result of Telesat’s commitment and investment in this essential service. Kasabonika, Ontario

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5.3.6 Video Uplink Service

Telesat’s customer base includes most of Canada’s English and French network television, cable distribution, and radio network broadcasters.

In keeping with the tradition of extending the boundaries of technology, Telesat has been active in researching and implementing both Telesat - at the forefront of video technology video and audio compression technologies. As a result of this research, Telesat has developed a leading position and team of engineering specialists in the study, design and implementation of satellite-based DVC and advanced television services. This expertise was applied to the conversion of Telesat’s TV distribution infrastructure from analogue to DVC technology beginning in 1995.

The early adoption of DVC technologies and the resulting efficient loading of satellite transponders provided immediate cost reductions to Telesat’s Canadian customers. High quality and high service availability was also maintained in the transition process, as demanded by the major programmers.

CBC English Television Network (ETN), Telesat’s remaining analogue customer, awarded Telesat a contract in 2000 that allowed Telesat to once again break new ground with an emerging technology. As part of the DVC transition, ETN required 8 Phase Shift Keyed (8 PSK) modulation for increased capacity. The 8 PSK modulation scheme, although highly sensitive to wideband system nonlinearities, was successfully implemented by Telesat in a manner that exceeds international broadcast standards.

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5.3.7 Best-in-Class Hardware

Over the past thirty years, Telesat has developed, stocked and updated several warehouse facilities across Canada with the latest common satellite subsystems available. By having a program to maintain the necessary ‘building blocks’ of satellite earth stations readily available, Telesat is able to streamline its delivery of solutions to the marketplace. The continual improvement of the hardware through supplier evaluations and competition for Telesat’s volume of purchases provides a cost-effective foundation of satellite ground segment infrastructure.

5.3.8 Emergency Restorations

Telesat satellites and earth segment resources provide a critical component of Canada’s emergency preparedness. As a result of its standard service offerings, Telesat maintains a large stock of satellite equipment that can be readily deployed in an emergency. Telesat has supported numerous emergencies in the past with rapid restoration of communications. Several examples are: the remote flooded town of Winisk, Ontario in 1986; a train derailment with voice service provided within 24 hours in Quebec in 1995; and the community of Churchill, Manitoba restored for a seven month period beginning January 2000 after a weather-related failure of terrestrial communication Winisk, Ontario links to the community.

5.3.9 Satellite Resource Management

In order to use the satellite spectrum efficiently, the ground segment users must operate at their designed operating points. Through either equipment failure or neglect in maintenance, these operating points can change over time and thereby adversely affect the use of the satellite resources and the performance of Allan Park multiple satellite networks. As a solution, Telesat developed an advanced software-based

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system to continually monitor our earth station transmissions to ensure that the satellite transponders operate at the designed operating points. Telesat makes this service available to other satellite users that have dedicated transponders. Similarly, Telesat has a Transmitter Location System that can locate an interfering uplink from any point within North America using sophisticated hardware and software.

5.3.10 Manufacturer Developments

Largely due to Telesat’s volume of purchases and internationally recognized technical expertise, Telesat continually demands quality standards and the development of enhancements from its suppliers.

Due to Telesat’s experience of operating in the harsh environments of northern Canada, as well as operating experience in a multi-client environment, the Company often tests, screens and evaluates the hardware developed by suppliers that is destined for worldwide markets. Telesat openly discloses its findings to the manufacturer in order to promote improvements. With several suppliers, Telesat is the Beta test location for both hardware and software evaluations.

5.4 NETWORK OPERATIONS

5.4.1 Introduction

Telesat is responsible for the day-to-day operation of its extensive earth station network. The Company’s Network Services Department is staffed by technologists, engineers, and support personnel who operate, control, maintain, and repair a network of more than 11,000 telecommunications earth stations in Canada and the United States. Telesat personnel staff field offices in Vancouver, Yellowknife, Edmonton, Calgary, Toronto, Ottawa, Iqaluit, Montreal, Halifax, and Allan Park, as well as an office in the U.S. The Allan Park site houses Telesat's Satellite Network Operations Centre (SNOC), a network monitor and control facility, a logistics and spares handling unit and a state-of-the-art repair facility. As well as field offices, Telesat has a network of 200 local field agents spread across Canada, mostly in small rural communities. These agents, working closely with Telesat staff, allow Telesat to quickly restore key communication links to these communities.

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5.4.2 Operating and Maintaining Telesat’s Earth Station Network

Of Telesat’s large earth station network, about 400 sites are located in remote areas of Canada. In many cases, failure of these remote sites would result in community isolation or other serious disruption. Telesat’s experience in the provision of service to remote areas has engendered a

devotion to the highest possible levels of Fort Severn, Ontario's most northern community service availability.

In 29 years of network operation, Telesat has established a highly experienced operations and maintenance team. Telesat provides maintenance and support service 24 hours a day, seven days a week. Telesat’s 100 technologists and more than 400 maintenance agents give Telesat front-line presence throughout Canada and the United States. Telesat can dispatch maintenance personnel from any field office and tend to customer problems quickly, no matter where they occur.

Telesat continually evaluates network performance and responds immediately to any service failures. The company’s maintenance program offers the following:

· around-the-clock trouble reporting and dispatch; · Canada-wide service personnel and equipment; · internal escalation of serious problems; · dedicated maintenance engineering staff; and · real-time trouble reporting.

These resources ensure that Telesat corrects service problems within the required period, that Telesat's management and customers are notified of delays, and that service performance meets or exceeds objectives. Furthermore, traffic transfers between satellites are meticulously planned to minimize customer inconvenience.

Telesat supports a proactive approach to identifying network service issues well in advance of any notification from a customer. Through Telesat's internal practice of continuous improvement, technologists are encouraged to find means of improving customer

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satisfaction. A good example of this is the recent design by Telesat technologists of a system that connects automated trouble-reporting systems directly to the pagers carried by technologists on duty, thereby reducing response times to a customer’s service requirements, anywhere in Canada.

In 2000, Telesat Canada provided its customers with an average network reliability of 99.975, making Telesat’s satellite network one of the most reliable in the world.

5.4.3 Satellite Network Operations Centre (SNOC)

Highly qualified and experienced technologists staff the SNOC at Allan Park 24 hours a day, 7 days a week. SNOC provides continuous monitoring and problem reporting for the entire Telesat network.

The Broadcast Video Section of SNOC monitors the quality and availability of video and audio signals for Telesat’s broadcast customers. These customers include network broadcasters, business television users, and Direct to Home service providers. As well

as video and audio monitoring, Broadcast Video Section, SNOC at Allan Park SNOC contains advanced detectors that automatically alert staff to degraded or impaired video and audio.

The Voice/Data Section of SNOC monitors the services of Telesat’s data and voice customers, including the service to remote areas of Canada and Telesat’s VSAT network. Advanced tools such as Network Management Systems, Carrier Monitor Systems and Transmitter Location System, allow SNOC to pro-actively determine potential problems in the network, before they affect customer services. Given the evolution of telecommunication systems, SNOC is in a constant state of change, as Telesat invests to ensure the highest quality monitoring of new services and technologies.

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The SNOC technologists who answer the trouble reporting hot line are often able to determine the cause of a problem and fix it without the help of field personnel. In the rare instances that they are unable to solve a problem by phone, they will dispatch repair technicians and arrange to send spare equipment if necessary. Alarm Centre, SNOC at Allan Park

5.4.4 Training and Development

Telesat ensures that its Network Services personnel are trained in the industry's ever- evolving technologies and applications. This policy equips field service personnel, supported by highly-trained and dedicated maintenance engineers, to deal comfortably with the latest technology. Telesat’s in-house training department has led this initiative. By coordinating external training and providing internal training, Telesat’s staff is one of the best trained in the industry. During 2000, Network Services staff received over 825 days of formal training - more than eight days each, on average - plus additional computer-aided and on-the-job training.

5.4.5 Repair Facility

Fully equipped and automated, Telesat’s repair centre is housed in its Allan Park complex. Allan Park staff have repaired and supported satellite networks for nearly 30 years. The Allan Park repair facility was expanded to over 15,000 square feet in 2000, has 15 full time staff, and represents an investment of over $2 million in test equipment. Further expansion in area, staff and investment is planned for 2001. In 2000, the repair facility processed more than 8000 repairs and is expected to surpass 10,000 by the end of 2001. Because the repair centre is not bound to any particular supplier, it can repair equipment from many different manufacturers. Telesat is able to reduce its repair costs by doing the repairs at

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Allan Park, thus avoiding shipping and brokerage costs when foreign suppliers are involved, as well as reducing the overall service costs through more rapid turnaround, resulting in reduced sparing costs. This capability has proven popular, and Telesat has a number of customers who take advantage of the Company’s repair expertise for their own equipment. Repair Centre at Allan Park

5.4.6 Conclusion

Through the use of highly-skilled and trained staff located across the country, advanced monitoring and diagnostic systems, and its in-house repair facility, Telesat is able to provide its customers with the superior quality service and highly reliable satellite networks, regardless of their location in Canada. The capability to provide end-to-end services is unique in the satellite industry. The expertise nurtured by Telesat has given Canada quality satellite services that are second-to-none in the world.

5.5 CONNECTEDNESS AGENDA

5.5.1 Introduction

The rationale for the creation of Telesat in 1969 was to connect Canadians. Founded by Act of Parliament, Telesat had a mandate to provide basic telecommunications services to all parts of Canada, including many communities in the Far North that would otherwise have been without basic telecommunications services. This important first step represented an important milestone in a national connectedness agenda long before the more recent Connecting Canadians Resolute, Nunavut initiatives, such as Schoolnet, Community Access, and the Broadband Task Force. Further discussion of Telesat services that help provide connectedness to rural and remote areas may be found in Section 6 of this volume.

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Telesat has remained at the forefront of satellite technology development and application, utilizing world-leading expertise, technological advances, innovation and Canadian orbital resources to continually improve the scope and cost-effectiveness of satellite-based solutions for Canadians. Telesat’s constant responsiveness to the needs of Canadian users, through an on-going commitment to investigating, developing and applying key technological advances to provide satellite solutions, has made Canada one of the most connected nations in the world.

Today, Telesat is actively preparing for the next phase of national connectivity enhancements. Anik F2, planned for launch in late 2002, will operate at C-band, Ku-band and Ka-band. Its advanced Ka-band payload with on-board processing will enable high-speed, direct-to-user multimedia interactive services, providing an effective solution to Canada’s need for full national connectivity.

In moving to diversify and expand its own fleet to ensure a sustainable and competitive Canadian satellite system in the global arena, Telesat aims to develop next-generation satellite systems that meet the evolving requirements of Canadian consumers and businesses, while optimizing the use of available spectrum resources. This strategy has been actively supported by a number of key programs undertaken by Telesat. With access to the spectrum at the

118.7° WL orbital position, Telesat will be able to expand and Anik F2 enhance these programs.

5.5.2 Advanced Satellite Systems

Over the past several years, Telesat has actively investigated emerging technologies and developed new system concepts. The recent focus of this activity is the development of high-speed, two-way, multimedia communications facilities, both space and earth-based, to provide low-cost links to any point in the country. Telesat’s participation in the CSA/CRC Advanced Satcom Program, via the Trials Program, is a forerunner to the development of ground-based multimedia platforms to be used with the Company’s future commercial satellites. The objective is to provide affordable, high-speed links to Canadian businesses, institutions, and consumers located in all areas of Canada. The Anik F2 initiative, currently

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being implemented in cooperation with the CSA, will provide an advanced Ka-band multimedia payload starting in early 2003. This multimedia payload will enable a plethora of communications solutions for virtually every application under the government’s Connecting Canada program.

5.5.3 Schoolnet

A few years ago, Telesat became involved in the Schoolnet I initiative by providing a satellite solution to facilitate Internet connectivity to approximately 1600 schools located in remote parts of Canada - approximately 10% of the schools connected under the Schoolnet I initiative. The service is based upon a high- speed satellite connection integrated into the school local area network (LAN) providing the forward link, with a return link via telephone dial-up through an Internet Service Provider

(ISP). Were it not for Telesat’s innovations, Telesat brings Schoolnet to 10% of Canada's schools it would not be possible for many schools located in aboriginal and other remote communities to have access to the critically-important Internet.

In 2000, Telesat expanded its Schoolnet involvement through the Schoolnet II over-the- satellite trial involving a dozen schools in off-net regions of Ontario and another dozen schools in Newfoundland and Labrador. The purpose of this project is to explore the potential advantages of remote caching by combining the strengths of satellite data broadcasting and the broadband content of the fibre-optic backbone systems, such as the CA*Net II & III. Telesat installed a pilot satellite-based caching service to schools and communities to determine how and where this combination of technologies would be most effective. Protocols and connection issues are being studied and an assessment will be made as to the usefulness of incorporating caching into service delivery networks for schools.

The trial network consists of a gateway and remote terminals, twenty of which have been installed at schools in two school districts - the Hastings & Prince Edward district in Ontario, and the Lewisporte & Gander district in Newfoundland and Labrador. A hub

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station has been established at Telesat’s new Research and Development (R&D) Lab in Ottawa incorporating an intelligent caching engine and receivers that have been developed in association with Canadian suppliers Rebel.com and International Datacasting (IDC), respectively. Each school has been equipped with a satellite receiver and a 20 GB cache.

The satellite connection adds a networking element, which effectively ties all the school caches together into a network of common interest. The most popular web objects, as calculated by the intelligence engine at the satellite gateway or the most important web sites, as decided by school administrators and teachers, are retrieved by the Gateway cache on a scheduled basis and transmitted by satellite to every school in the network. Each school cache will accept and store this information, so that it is available for subsequent requests.

75 cm antenna Indoor Receiver

QPSK MPEG decoder Video demod (optional) LNB Audio

FEC data RJ-45 decode Transport Stream Bus extractor

to Switched Dial-up line for internal telco connection maintenance & modem to Gateway configuration

to WAN, or ISP Cache & Server Exit Router

School LAN 10 Base T/100 Base T

Schoolnet II brings the benefit of satellite web caching to off-net schools

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These trials have already demonstrated the substantial benefit of satellite Web caching for schools in off-net areas. The cost of communications has been reduced by 25% and student Web access response times have been vastly improved. An impressive 50% hit rate using the satellite-loaded local caches is expected to improve in 2001 by the development of more intelligence in the caching engine. The Schoolnet II trials will be further enhanced this year with the addition of video streaming. Discussions are currently underway with the National Film Board to distribute their library of movies to schools via an IP-based video streaming multicast configuration.

In terms of a potential future service, this type of network could be used to extend the reach and benefits of the existing high-speed terrestrial fibre networks. Content-specific caching via satellite will extend reach to areas that would otherwise have limited access to high- speed interconnections. The use of a local cache, updated from a large gateway-based cache, on either a real-time basis or an off-hours basis, will leverage the benefits of satellite high-speed broadcast capabilities in a very economical fashion. The benefit to the users would be a significantly enhanced experience with faster access to Internet-based information sources than is possible with the low-speed access technologies currently available to many schools and remote communities.

Given the success of the Schoolnet II trials, Telesat is already planning to provide enhanced connectivity and services to meet the future needs of off-net schools and communities. In the second half of 2001, Telesat plans to undertake a Schoolnet III trial by providing high-speed, two-way multimedia satellite communication links via a suitable ground platform. The high-speed satellite return channel from each of the schools will open up a host of new applications, including collaborative learning, video conferencing, and local Web hosting.

The final stage in this development program will follow the launch of Anik F2 in late 2002. Telesat’s Ka-band payload on Anik F2 will enable Schoolnet III services using small, affordable user terminals in combination with low-cost airtime.

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5.5.4 Smart Communities/Community Access Program

Telesat has been a pioneer in the development of satellite-based smart communities. In remote communities across Canada, satellite terminals are located at community centres to enable high-speed, two-way communication links that provide the same level of communications services as are available in more densely populated parts of the country. The high-speed links can be established on demand and can link any of the remote communities to any other community, as well as to major cities in southern Canada. Telesat has developed a host of applications for these communities, including high-speed Internet access, telemedicine, distance learning, telejustice, remote library access, and other government services such as electronic job searches using Human Resources Development Canada (HRDC) kiosks.

In recognition of its demonstrated expertise in applications development, Telesat has been selected by the European Space Agency (ESA) as a partner in a number of related projects. The Remote Community Services Telecentre (RCST) was one of the first R&D projects in this area. Telesat spearheaded the provision of remote telecentres in several communities in Newfoundland and Labrador, some of which were further provisioned with a local wireless communications system to link various facilities in the community with the main community centre housing the satellite ground station.

This project was followed by the Integrated Emergency Medical Network (IEMN) program, also supported by ESA, which used the same network architecture as the RCST project to extend communications via transportable/mobile facilities to remote locations experiencing medical emergencies. Another ESA-supported project that has just been initiated is called the Marine Interactive Satellite Technologies (MIST) project, which will extend the above-noted communications capabilities to ships and ferries operating anywhere in Canadian waters.

Telesat’s success with these initiatives has recently been recognized by Industry Canada. As part of the SmartCommunity program, $5 M in funding was awarded to 10 consortia to establish a smart community project in each province across the country. Telesat is a

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partner in three of the selected proposals: SmartLabrador, SmartCapital and the SmartCommunity - First Nations project. Telesat’s role in these projects will be to build on its extensive development expertise in the SmartCommunity area to establish satellite-based high-speed communications links to additional remote communities across the country. Telesat will also work closely with the remote communities to develop the various applications that will use these multimedia communications links.

In addition, Telesat is evaluating emerging satellite communications platforms to determine if additional features can be incorporated into second generation versions of SmartCommunities. For example, Telesat is evaluating new Multi-Frequency Time Division Multiple Access (MF-TDMA) systems with the aim of improving networking flexibility compared to current community platforms.

5.5.5 Applications Development

In addition to the host of applications that Telesat has developed as part of the SmartCommunities work, other applications development work has been the subject of extensive investigations by Telesat in its R&D Lab.

One of the key applications pioneered by Telesat is telemedicine via satellite. The company has been involved in satellite field trials in several provinces involving numerous partners such as the Ottawa Heart Institute and Tetra/Memorial University. These trials have used Telesat’s satellite and applications development expertise to demonstrate the value of satellites in providing cost-effective and immediate medical care to Canadians living outside the major population centres, and to bring about needed services in a seamless fashion. Commercial services have resulted from this R&D work in at least two provinces.

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Health Canada has shown interest in establishing further trials this year in Manitoba and British Columbia. A major tele-psychiatry project involving a number of satellite-linked remote regions of Ontario is expected to start this year.

5.5.6 R&D Lab

Recognizing the need to evaluate and test emerging technologies and applications, Telesat has recently made a significant additional investment to its existing R&D lab. The new facility is a 4000 square-foot area dedicated to satellite-based multimedia trials and demonstrations. The R&D Lab hosts active computing platforms that are networked over satellite and linked by a common theme of connecting Canada and Canadians. On-going trials are managed from a hub area and a network control centre within the Lab. The multimedia lab is designed to provide both a development environment and an educational and demonstration area.

The R&D lab is fully equipped with broadband test equipment for MPEG, IP and ATM and wide-area access to the Internet and to Ca*Net III via the BADLAB gateway at CRC. Fibre ring for Gigabit Ethernet is nearing completion that will interconnect high tech companies in Ottawa.

Each month over 100 visitors, mostly senior executives and foreign dignitaries, pass through Telesat’s R&D lab taking one to two hours to view selected demonstrations. Since its inception, the new lab has made a significant contribution to changing preconceived notions on the wide-ranging applicability of satellite technology to serve all sectors and all regions of President Fernando De la Rua of Argentina Canada. is greeted by Telesat CEO Larry Boisvert

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Most of the projects supported by the lab are partnerships with industry and research organizations, building a strong foundation for long term cooperation. These include ESA, CSA, Industry Canada, CRC, TETRA and CANARIE. The R&D lab hosts many concurrent applications that are continually updated based on demand and changing priorities.

The current projects include:

i) Trial Network Operations Centre (NOC) for Bandwidth on Demand (BOD)

The NOC and Hub located in the R&D lab currently support over 20 permanent remote sites located in Newfoundland and Labrador, Quebec, Ontario, and Alberta as well as small aircraft transportable terminals. Satellite utilization exceeds 1000 hours per month linking remote communities to metropolitan centres and other remote sites. It is used for medical consultation (telemedicine), police and judiciary (telejustice), emergency services and providing Internet access where it would otherwise not be available. Links vary from 1 Mbps to 128 kbps. In addition, the lab provides an area for Canadian companies to develop an enhanced Bandwidth Management system for this trial network.

ii) Advanced Satcom

The lab is the prime integration area for the first North American multimedia hub based on an MF-TDMA return channel, developed by EMS Technologies (Montreal), Nortel (Ottawa) and SED (Saskatoon). The 384 kbps to 2 Mbps return channel and

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16 Mbps forward link channel, is the most promising standards-based new-generation VSAT, capable of supporting link speeds for multimedia applications using lower cost terminals. The star configuration, combined with the on-demand bandwidth management algorithm, supports many simultaneous users for future services. During 2001, the lab will prime trials targeted to small office home office (SOHO), using Ku-band and this advanced VSAT platform.

iii) Caching

The R&D lab currently dedicates four areas for the caching trials: satellite transmission and MPEG multiplexing, servers, user demo area, and statistics gathering and analysis workstations which service 20 schools in Newfoundland and Labrador and Ontario. The results to date have shown that the caching technology improves performance and provides teacher and school board content control. It will be expanded to provide streaming video and audio (IP multicast). The demo work area emulates a school LAN providing services to an individual student.

iv) IP Telephony

An IP telephony system supplied by the Canadian division of Nokia is set up in the lab to demonstrate this service over satellite. It is fully integrated with the Telesat corporate PBX to allow end-to-end conversations between two parties, one linked via satellite. The IP telephony platform will be expanded to be part of the telecommuting SOHO trials.

v) Information Kiosk

A Government of Canada information kiosk is a permanent fixture of the multimedia lab. It is connected over satellite link and provides immediate access to government services information such as the Job Bank and departmental

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information servers. The kiosk promotes not only accessibility of information to Canadians wherever they are across the country, but also the integration with satellite technology. The satellite link to the kiosk is shared with other traffic to demonstrate the ‘Smart Communities’ concept.

vi) Video Content Streaming

The lab has a functioning real-time MPEG-4 encoding and IP streaming capability. It has clearly shown the quality possible for distribution of broadcasting and other server-based video media, and currently shares the transmission carrier received by schools participating in the caching trial. The synergy of the two initiatives will be the basis for new applications for video content distribution to the educational community.

vii) Small Office Home Office (SOHO)

The SOHO concept for work-at-home is one of the most promising market segments. A SOHO is permanently set up providing IP voice, teleconferencing, e-commerce and Intranet access. The comfortable area simulates a typical Canadian home office environment to test work- at-home concepts and allow network requirement definition and optimization.

viii) Interactive Home Applications

The popularity of the Internet has spawned interactive applications between computer users. The applications include first person target gaming, multi-user racing, and e-conversations such as chat groups. Telesat’s lab demonstration set-up provides an area for users to compare performance between workstations networked to the Internet via satellite and via terrestrial links and for the developers to optimize applications to the characteristics of satellite networks.

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ix) Large Screen Viewing Room

Live programming from Canadian broadcasters that currently transmit high definition programming on Anik and Nimiq are received on a small dish antenna and projected in the lab in a simulated home cinema. The screen viewing angles and multichannel sound are designed for typical HDTV home viewing and future digital cinema. The viewing room also provides a basis for investigation of cinema digital delivery networks.

x) Collaborative Networking

A four-node network connected over Telesat’s satellite is integrated and located throughout the Company’s headquarters building. Each workstation implements open-source software developed by Canadian universities that offers a low-cost platform for remote collaborative work in the areas of tele-education, tele-work, tele- meeting, and tele-conference.

Commitment to R&D

Each year, new R&D projects are being introduced to Telesat’s R&D lab. In this way, Telesat ensures that it continues to stay at the forefront of technology evolution and applications development. To accommodate these new projects, each year Telesat invests labour and capital resources in R&D. It is expected that, in 2001, Telesat will spend in excess of $6 M for R&D activities associated with advanced satellite payloads, applications development and technology trials.

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6.0 SERVICE TO NORTHERN AND REMOTE AREAS

“As we continue to reach out to the Far North to offer opportunities for people to improve their lives, we know how important satellite technology will be in this process. Telesat’s current and past contributions to our network’s aims have shown us that they are excellent partners in finding innovative solutions to the challenges of serving the North, and we would like to see their position as leaders in satellite technology enhanced by the success of their application.” Maxim Jean-Louis, President & Chief Executive Officer Contact North, Thunder Bay, Ontario January 18, 2001

6.1 INTRODUCTION

Telesat has a long-standing commitment to furnishing the most modern communications services to northern and remote areas of Canada. This section provides further detail on the services currently offered. In its plan for use of the 118.7° WL orbital location, Telesat is committed to expanding the communications infrastructure in northern and remote areas.

6.2 TELEPHONE COMPANY NETWORKS

Telesat has been instrumental in assisting telephone companies in serving communities within their service territories, particularly in underserved remote areas. Services provided not only include telephony and data but are also evolving to support Internet applications.

Telesat provides voice, data and image services to Télébec, Québec Téléphone, Aliant, ONTel, MTS, Sasktel, Telus, NWTel and Bell. Canada’s telephone companies have selected Telesat facilities to expand their networks into remote areas of their serving territory because of the optimized coverage, the advantages of dealing with a Canadian company and,

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most importantly, Telesat’s willingness to contribute its expertise and experience in the development of new products to modernize their service offerings (see also Section 5.3.5 of this volume).

Using Telesat’s satellite facilities, NorthwesTel’s earth station network presently consists of 59 earth stations that can be categorized as follows:

· 26 community earth stations in Nunavut providing basic telephony, frame relay data (including telehealth and distance learning), and private wire services. · 22 community earth stations throughout the Northwest Territories providing basic telephony, frame relay data (including telehealth and distance learning), and private wire services. · 5 community earth stations in British Columbia providing basic telephony and private wire services. · 1 community earth station in Yukon providing basic telephony, frame relay data (including telemedicine), and private wire services. · 3 additional earth stations in Yukon extending a regional telemedicine network. · 2 earth stations in the Northwest Territories serving private customers.

In addition, telephony Master Control Stations (MCS) are located in Whitehorse and Yellowknife. These stations also serve as hubs for the data network overlay.

Telesat’s satellite network is essential to the provision by Bell Canada of modern services in the more remote areas of Ontario and Quebec. Twenty-six remote communities obtain Public Switched Telephone Network (PSTN) access to the rest of the world via Telesat’s Montreal Teleport. The technology utilized is based on a Demand Assigned Multiple Access (DAMA) satellite access technique that offers effective utilization of the satellite space segment resource.

This network platform has been recently upgraded so that Bell can offer enhanced services in the most remote parts of its serving area similar to those enjoyed in the urban Telephony Master Control Station, Montreal Teleport areas of Canada. Features such as caller identification, caller name, enhanced 1-800 capabilities, express messaging, call transfer, call forward, as well as other services are now fully supported on this satellite network platform.

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6.3 BROADCAST

Telesat Canada has played a unique role in the growth of the broadcast industry and, in particular, its application to the North and to remote areas of Canada.

Today, many small communities and remote resource camps have access via Telesat satellite to a complete package of Canadian television signals, including: the CBC and Radio Canada public networks; major private networks, such as CTV, Global and TVA; educational networks such as TV Ontario and Knowledge Network; and a host of specialty channels including Newsworld, Much Music and TSN. Radio signals from the CBC, Radio Canada and private broadcasters are also available for off-air rebroadcast or cable distribution.

The launch of Direct-to-Home services in 1998 by StarChoice and ExpressVu further revolutionized the Canadian broadcast industry. Today, even the most isolated home has affordable access to almost unlimited choice of signals, including those of all Canadian broadcasters. Over 1.3 million Canadian households, many of which are located in rural and remote areas that are not served by cable, are subscribers to one of the Canadian DTH services.

Canadians rely on information and news sources using Telesat satellites as the delivery vehicle, no matter whether these sources are accessed by cable, DTH transmission, or via the Internet.

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6.4 BUSINESS AND GOVERNMENT

Many corporate and government clients have made use of Telesat services to provide the most modern communications capabilities to their remote locations.

Customers such as the Canadian Imperial Bank of Commerce, National Research Council, Aeronautical Radio, Inc. and the RCMP have used the Telesat Anikom 200 service to extend their corporate data networks to remote locations. Clients with specialized applications and requirements, such as Nav Canada, the Atmospheric Environment Service (AES) and the Department of National Defence (DND) have used Telesat services for extension of their data networks. AES makes use of Telesat services for the transmission of weather information - a vital service for aviation and safety in remote areas of the country. Other uses of Telesat satellites by AES include the transmission of data from Doppler radar sites located across the country, and for data collection from the 81 site lightning detection network used to track thunderstorms. Nav Canada transmits critical information to Canadian airports via a custom-built network, and also makes use of satellite links in their network used to communicate with aircrews flying within Canadian airspace. DND has used Telesat services for various data connectivity requirements within the Canadian military, including: High Arctic Data Communications System (HADCS), North Warning System (NWS), Forward Operating Locations Satellite Communications System (FOLSATCOM), Defense Integrated Services Digital Network (DISDN), as well as Operation ABACUS, which provided a Y2K back-up network. DND HADCS Station in Eureka, Nunavut

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GTIS, Public Works, Correctional Services, and the Nunavut Territorial Government all make use of Telesat satellite services between Ottawa and Iqaluit, to extend government services to the new Nunavut Territory. Telesat satellites provide the only reliable communications link to this territorial capital.

Legislature Building, Iqaluit Nunavut

Other customers such as the Canadian Department of Fisheries and Oceans and the Canadian Space Agency have opted to purchase Telesat satellite space capacity to fill their needs for data communications requirements.

As a matter of national security and sovereignty, it is important to maintain such critical government services on facilities owned and controlled by Canadians. Only by awarding the licences at the 118.7° WL position to Telesat can the Canadian Government ensure that the satellites at that location are controlled from Canada by Canadians.

“The protection of Canada's critical infrastructure from the risks of failure or disruption is essential to assuring the health, safety, security and economic well-being of Canadians." Prime Minister Jean Chrétien February 5, 2001

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7.0 INTERNATIONAL ACTIVITY

“Telesat’s satellite expertise is well known in the satellite industry throughout the world. The assistance which Telesat was able to provide to our company in its formative years was an important contributor to the technical and business success that S.E.S. has enjoyed.” Aldis Grinbergs, Technical Director Société Européenne des Satellites November 20, 1998 7.1 INTRODUCTION

Telesat’s focus has been on meeting the telecommunication needs of Canadians first and foremost. However, the Company’s satellite expertise and its global reputation for excellence in technology and management of its satellite resources have resulted in Telesat providing services beyond Canada’s borders from its earliest days, providing opportunities to earn export revenue and increase the skills and expertise of Canadians.

Telesat expertise has been employed worldwide - from Tunisia to Guam

With the liberalization of global trade in telecommunication services in the late 1990’s, Telesat, as part of its transition strategy, began to position itself so that it could address the new markets that would be opened in the U.S. and South America. Telesat’s efforts to develop an international business presence have provided the following benefits:

· creation of new jobs in Canada; · export of marketing, technical and operations know-how; · presence and Canadian point of contact for firms located in Canada that need telecommunication services throughout the Americas; · additional consulting work for Canadian companies in U.S. and/or South America markets; · reinforced the reputation of Telesat as a world-class, experienced satellite telecommunications carrier;

Telesat Canada 7-1 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

· exposed Telesat’s employees to the U.S. and South American markets, allowing them to add to their knowledge base; · increased capital expenditures within Canada by Telesat for new systems to handle the Company’s expansion; and · increased operating expenditures within Canada by Telesat as the company increased its business in the U.S. and South America.

7.2 TELESAT - SERVICES IN THE U.S. AND THE AMERICAS

7.2.1 Satellite Restoral/Back-up Capacity

From its beginning, Telesat recognized the importance of fostering a working relationship with U.S. satellite carriers to have ready access to additional capacity for back-up purposes or to temporarily handle unexpected growth. The 1972 Exchange of Letters between Canada and the U.S., and the amendment to these letters in 1982, allowed for back-up, restoral and cross-border services between Canadian and U.S. satellite carriers.

Since 1974, Telesat has leased surplus space segment capacity to several American operators, such as GE Anik E Americom, GTE Spacenet, Argo Communications, AT&T Skynet, GCI of Alaska, and Hughes Communications. In addition, short-term surplus capacity is leased to U.S. customers on an occasional-use basis. Telesat was able to offer the lease of these RF channel services without depriving its Canadian customers of satellite services or capacity. This arrangement for reciprocity worked well for Telesat when, in 1994 during its Anik E2 service interruption period, the Company was able to purchase Telstar 301 from AT&T Skynet and provide continued services to its Canadian broadcasters.

Telesat Canada 7-2 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

7.2.2 Cross-Border Links

The design of the Anik E satellites enabled the Company to provide cross-border services to Canadian companies and their U.S. affiliates needing private links between Canada and the U.S. Satellites have proven to be particularly effective for point-to- multipoint links, or links where one or more nodes are located in remote areas. The enhanced coverage of the Anik F satellites will strengthen Telesat's presence in this market.

In addition to private network cross-border communications, Telesat has provided service to Canadian broadcasters who need to distribute their programming services to locations in the U.S. These types of arrangements provide a valuable service to Canadian companies by improving their competitive position and easing their expansion into the U.S.

7.2.3 Facilities Engineering

Telesat has actively sought out opportunities for the design, construction and operation of satellite gateways, or other large ground station networks, for other satellite operators in other countries. For example, Telesat was contracted to construct the tracking and command (T&C) earth stations for the Iridiumâ system. The two Canadian locations - in Yellowknife and Iqaluit - and a third site in Hawaii, were required to transmit control signals to position, monitor and maintain the orbits of the Iridium satellites. Later, Telesat signed a contract to operate and maintain these stations and provide consulting support on a fourth earth station site in Iceland. Telesat staff later worked on 13 Iridium gateway earth stations.

T&C Station for Iridiumâ in Iqaluit Nunavut

Telesat Canada 7-3 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

7.2.4 VSAT Network Maintenance

In 1999, Telesat successfully competed for the installation and maintenance of a network comprising VSATs, interactive distance learning and data processing equipment for 5500 dealerships of the Ford Motor Company across the United States. Telesat has established itself as a leader in the VSAT field. The Company is now responsible for the maintenance of more than 7,000 sites in the U.S., and typically installs hundreds of new sites per year. Telesat has established a 15 person VSAT Control Centre at its National Operations Centre in Allan Park, Ontario which is responsible for the management of these U.S. contracts, as well as Telesat’s Canadian VSAT networks.

7.2.5 South America

Given the extended coverage of Anik F1, Telesat is also concentrating on developing South American markets. The Company had initial success in the South American markets using older satellites that were no longer needed for service in Canada.

In 1993, Telesat successfully negotiated the sale of two Anik C satellites - C1 and C2 - to Paracom S.A. in Argentina. The Company also retained a ten per cent interest in the business to help secure its participation in the marketing of satellite services. Telesat operated the satellites on behalf of Paracom from its Satellite Control Centre in Ottawa. The agreement was arranged as an interim solution until Argentina successfully launched its own Nahuelsat series of satellites, whereupon the Anik C1 satellite was repurchased by Telesat.

Telesat Canada 7-4 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

Consistent with Telesat’s transition plan, the design of Anik F1 was developed so that Telesat could expand substantially into the South American market. Consequently, in 1998 the decision was made to start serving Brazil in advance of Anik F1 by repositioning Anik C1 to serve southern Brazil. Telesat later sold Anik C1 to Loral Spacecom for service over Brazil, but still operates the satellite from the Satellite Control Centre in Ottawa. Given the capabilities of Anik F1, and its footprint covering all of South America, the Company has hired and assigned sales managers within South America to expand its market presence. Canadian-based staff continue to provide ongoing sales, marketing, financial, legal, technical and administrative support to the Company’s marketing efforts in South America.

7.3 INTERNATIONAL CONSULTING

With the launch of Anik A1 in 1972, Telesat became the first company in the world to place a domestic geostationary communications satellite into commercial service. It soon became apparent that Telesat had developed an expertise unique in the new area of satellite communications. Initially, Telesat provided consulting services to countries in Southeast Asia in the late 1970’s and early 1980’s. By the mid-1980’s, Telesat was providing consulting services into the Americas. Telesat has now leveraged its initial consulting contracts, and the continuing development of skills related to its own network, into a growing and profitable business providing consulting and satellite services worldwide.

Telesat has invested to develop the skills and expertise of its satellite engineering team. Telesat engineers are now among the best available for the complex and painstaking task of evaluating and monitoring a satellite manufacturer’s performance. This team includes many engineers who are considered industry experts in the areas of satellite design, systems analysis, subsystems design, transfer orbit services and satellite operations. The work that Telesat performs in its consulting business runs from the initial business plan development through to in-orbit satellite operations. Telesat provides business plan development

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services based on a client’s business objectives. Once the business plan has been finalized, Telesat then assumes the responsibility of designing a satellite that meets the client’s business plan. This specification then forms the basis of a request for proposal to be issued to the various satellite prime contractors. When the final proposals are received, Telesat will perform a full evaluation of the manufacturers’ responses, both technically and commercially, and advise the client as to the acceptability of the proposal.

After the evaluations have been completed, Telesat assists the client in negotiating the full procurement specification, again both technically and commercially. After a satellite procurement contract has been signed, Telesat establishes a field office at the manufacturer’s facilities where the performance of the manufacturer is monitored throughout the entire procurement phase. Telesat closely monitors spacecraft Upon completion of the satellite, the satellite is shipped construction for its clients to a launch site where Telesat monitors the integration of the satellite to the launch vehicle.

Following launch, Telesat assists the client in monitoring the performance of the satellite manufacturer in measuring the technical performance of the satellite at its orbital position and makes recommendations concerning final acceptance of the satellite.

Table 7.1 provides further detail on some of the satellite programs in which Telesat has been involved as a consultant.

Table 7.1 Spacecraft Programs Consulting Experience

NO. OF YEAR COUNTRY CLIENT PROGRAM SPACECRAFT 1975 Canada DOC (CRC) Hermes (CTS) 1 1981 Australia OTCA/AUSSAT AUSSAT K1-3 3

1981 USA GTE GSTAR 1-4 4

1983-89 Luxembourg SES ASTRA 1A 1

1983-90 USA ASC ASC 1, 2 2

1985-86 Brazil Embratel Brasilsat 1, 2 2

1985-87 USA GTE Spacenet 1-4 4

1986-91 UK BSB MarcoPolo 1, 2 2

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Table 7.1 Spacecraft Programs Consulting Experience

NO. OF YEAR COUNTRY CLIENT PROGRAM SPACECRAFT 1988-90 Hong Kong Asiasat Asiasat-1 1

1988-99 Canada CSA Radarsat 1 1989-98 USA Orion Satellite Orion , 1,2, 3 3

1990 Luxembourg SES ASTRA 1C 1

1991 Japan JCSat JCSat-3 1

1991-94 Mexico Telecomm Mexico Solidaridad 1 & 2 2

1992 Malaysia Binariang MEASAT-1 1

1992-95 Canada-US TMI/AMSC MSAT 2

1993-97 USA Tempo/Primestar Tempo-2 2

1994 Argentina Nahuelsat Nahuelsat-1 1

1994-95 USA Echostar Echostar 1 1

1994-96 Indonesia Satelindo PALAPA C1, C2 2

1994-99 Indonesia ACeS/PSN Garuda-1 1

1994-99 Taiwan NSPO ROCSAT 1 (LEO) 1

1995 Canada Teleglobe Orbcom 1 1995 Egypt ERTU NILESAT 2

1995 Mexico Telecomm Mexico Morelos 3 1

1995 USA AT&T Telstar 402R 1

1995-96 Thailand ABCN L-Star 2

1995-97 Philippines Mabuhay AGILA-2 2

1996 Canada Teleglobe Odyssey 12 1996-98 USA News Corp. N1 & N2 2

1996-00 USA MCI/Echostar Echostar 5, 6 2

1997-98 Indonesia M2A M2A 1

1997-99 Indonesia PT TELKOM Telkom-1 1

1997-99 Korea Korea Telecom Koreasat 1

1997-99 Saudi Arabia ARABSAT ARABSAT-1 1

1998-99 USA ISC Express, Troika 4

2000 USA ISC ISC-1 1

Total Spacecraft 73

Telesat Canada 7-7 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

In parallel with the procurement process, Telesat can provide to the client its expertise on the ITU frequency coordination process. Telesat has also developed the expertise to plan and conduct the launch mission for the satellite. This involves planning of the mission orbits and the firing of the satellite motors during the transfer orbit phase. This expertise is unique for an operator, as it is normally found only with satellite prime contractors. Telesat’s expertise in this area is so highly regarded that manufacturers use the service from time to time to validate their own mission planning. With the expertise developed in this area, Telesat was able to further develop its provision of transfer orbit services and has also established a worldwide tracking network. Telesat also sells complete tracking stations and facilities to other satellite operators around the world.

Telesat has always designed and built the required software for the operation of its Anik satellites. Part of this software suite includes a flight dynamics system that manages the day-to-day support of all aspects of geosynchronous missions : transfer orbit injection, arrival at the orbital location, equatorial and inclined stationkeeping, orbital relocation, and finally, satellite retirement. Four years ago it was decided to commercialize the software. Telesat was successful in selling this software to other satellite operators and to Hughes Satellite Corporation (today known as Boeing Satellite Systems) for satellites that are being sold to other satellite operators around the world. As part of its consulting services, Telesat also offers training programs to clients interested either in entering the satellite business as operators or users of satellite services. These training courses were initially developed for Telesat’s internal use, but have now been customized for delivery to clients around the world. Telesat’s training programs have been presented in more than ten countries.

Through its international activity, Telesat has extended its knowledge base, tapped additional sources of revenue and amortized its fixed costs over a larger market base. This has strengthened its ability to provide services in Canada and opened up export opportunities for its Canadian suppliers and subcontractors.

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8.0 FOSTERING A CANADIAN SATELLITE INDUSTRY

“Telesat’s work to reduce the cost of using the satellite communication network…will improve the economics of providing service to communities outside the urban areas. This will expand the market for March Networks Customer Premise Equipment…” Dr. Alan Aitken, Vice President, Government Relations March Networks January 23, 2001

8.1 INTRODUCTION

Telesat has always endeavoured to work closely with Canadian suppliers in both the space and ground segments. Many Canadian manufacturers that received their start as suppliers directly to Telesat or as subcontractors on Telesat procurements have subsequently built worldwide reputations, an example being COM DEV. Telesat procurements have encouraged foreign prime contractors to subcontract to Canadian manufacturers. In many cases, the resulting relationships have expanded far beyond the Telesat programs to result in significant opportunities for Canadian industry.

Telesat Canada 8-1 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

8.2 SPACE SEGMENT

8.2.1 Support of the Canadian Space Industry

Telesat has a strong track record of working with Canadian suppliers to develop Canadian skills and expertise. All of Telesat’s satellite procurements have endeavoured to incorporate as much Canadian skill and technology as was commercially feasible. By working closely with Canadian suppliers, Telesat has assisted in the development of technological capabilities within the Canadian space industry.

The following is typical of the type of provisions that have been included in Telesat satellite procurement contracts. The prospective prime contractors are required to state an amount of Canadian content. This amount cannot include Canadian Customs duties, excise taxes, materials and non-resident labour and services imported directly or indirectly.

The type of Canadian content is broken out into four elements:

1. design and engineering labour; 2. manufacturing labour; 3. materials and components; and 4. others.

The contractor is required to keep accounts and records so that an audit can be completed on the Canadian content achieved at the end of the program.

In the event that the contractor fails to achieve the minimum Canadian content agreed to under the contract, as determined by an audit, the contract price is to be reduced - dollar for dollar - by the amount of Canadian content not achieved.

Telesat Canada 8-2 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

In addition to the committed Canadian content, the contractor is required to enter into valid and binding contracts with Canadian sources for the procurement of goods and services pertaining to satellite-communications related work for markets other than Canada. The contract then requires the contractor to state the value of contracts that it would be committed to within a set period of time from the contract signing. Again, if the contractor fails to achieve the commitment within the specified period, it is required to rebate to Telesat the difference between the committed and actual Canadian content values. The contractor is required to provide reports to Telesat on how it is performing in attaining this commitment.

8.2.2 The Anik F and Nimiq Examples

Telesat’s Anik F1, F2 and Nimiq programs are excellent examples of its commitment to Canadian expertise, with each program including significant contributions from Canadian space industry subcontractors. Together the Anik F and Nimiq procurements have resulted in over $250 M of benefit to the Canadian space industry.

Telesat Canada 8-3 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

“In the highly conservative global space industry the opportunity to fly newly developed and qualified space technologies is extremely critical - without the flight opportunity provided by Telesat COM DEV would not have been able to secure follow on sales from the global prime contractors. To date COM DEV has provided more than $40 M of hardware on Telesat programs and has secured more than $300 M of follow on sales of this technology on international satellite programs. These sales have contributed significantly to COM DEV building a $100 M space business in Canada which currently employs more than 500 employees in Cambridge, Ontario.”

John Keating, President COM DEV Space Group March 5, 2001

Telesat believes that, by remaining committed to nurturing Canada’s space component suppliers and ensuring that a Canadian content requirement is incorporated into its procurement process for satellites, it has enhanced both COM DEV and EMS (Spar) as world-class subsystem suppliers in the satellite business. COM DEV is recognized worldwide for its leading-edge multiplex and filter products, while EMS is a world leader in antenna design and active component technologies.

8.3 EARTH SEGMENT

Telesat has established excellent working relationships with ground system suppliers in Canada. Canadian ground system suppliers provide various forms of support to the company’s facility and applications development activities. Early procurements involved RCA Ltd. (an antecedent of EMS) of Montreal, Raytheon Canada of Waterloo, Ontario and SED Systems of Saskatoon. The following are several examples of more recent Telesat investments and collaborative efforts with the Canadian government.

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8.3.1 Telesat R&D Lab

Telesat recently invested significantly in a major expansion of its R&D facility. Canadian suppliers to the R&D lab have included EMS, International Datacasting, Rebel.Com, and SED. More importantly, as outlined in Section 5 of this volume, the R&D lab and Telesat’s associated space segment and personnel provide an opportunity for Canadian suppliers to trial and enhance new products - products that could become significant sources of future revenues.

8.3.2 Advanced Satcom Trials Program

Telesat Canada 8-5 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

The Multimedia Satellite Technology Development and Trials Program (the Trials Program) is an excellent example of a cooperative program between Telesat and industry, supported by the Canadian Government.

The Trials Program is part of a broader initiative between the Crown and the private sector known as the Advanced Satcom Program. The umbrella program is funded by the CSA under the auspices of the Long Term Space Plan (LTSP) II. It is administered by the CRC. Its main objective is to help Canadian industry to benefit from the many emerging advanced technologies and multimedia services, by capturing the maximum possible share of the expanding domestic and international markets. Telesat was competitively selected by CSA/CRC as the prime contractor for the Trials Program to bring a service provider’s perspective to the Advanced Satcom Program and to ensure that the associated technology developments are dictated by service-related, as well as product-related priorities. The Program has involved key Canadian suppliers such as EMS, Nortel, Norsat and SED. EMS is providing the terminals and Telesat recently purchased an IP Data Encapsulation subsystem from Spectraworks, a Canadian company recently acquired by Norsat.

The purpose of the Trials Program is to develop a network composed of a Gateway Control Station and prototype Satellite Interface Terminals (SITs) developed under a separate Program. The resulting configuration will be used to conduct a series of multimedia application trials at Ku-band. The completion of the trials will help Telesat in its development of a Ka-band commercial multimedia service offering, while also positioning the suppliers to compete internationally in the developing market for Ka-band ground segment equipment.

Telesat Canada 8-6 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

The Program has already paid dividends. Telesat has gained valuable knowledge in defining meaningful applications that will provide users with cost-effective communications solutions to their needs. In addition, EMS and Nortel were able to win an international commercial procurement contract for the supply of Ka-band ground segment equipment to SES Astra.

8.3.3 Anik F2 Ground Network

Telesat’s Anik F2 deployment plan calls for the purchase and deployment of a ground segment network to utilize and offer broadband multimedia services via the Anik F2 Ka-band spectrum. Telesat is currently preparing an extensive Request for Proposal (RFP) for three Canadian Gateway facilities and a number of Ka-band user terminals. The RFP will be released in 3Q2001. Telesat is anticipating that as a result of the extensive work already carried out by companies such as EMS, Norsat and SpaceBridge, Canadian suppliers are in a strong position to provide competitive bids for all major portions of this new network.

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9.0 A HISTORY OF COMMITMENT - COMMITTED TO THE FUTURE

“Awarding the 118.7° WL orbital slot to Telesat will provide continued priority access to Canadian companies and the footprint will provide coverage to all regions of Canada and we support these objectives.” Peter Classon, President Canadian Satellite Communications, Inc. February 12, 2001

Telesat is the most qualified applicant to develop the 118.7° WL orbital position. Only Telesat can offer:

· 30 years experience in serving Canadians with high quality satellite services; · extensive experience in the provision of services to all Canadians and, in particular, to those Canadians in rural and remote areas; · a 100% Canadian company in full compliance with the Canadian ownership and control requirements; · a proven financial track record, high standing in the financial community and the access to funds necessary to complete the satellite program within the identified schedule constraints; · a highly skilled workforce of proud Canadians who have successfully launched and operated 13 satellites. The Telesat team is the best qualified to ensure complete success in meeting the tight timelines for the 118.7° WL position;

Clerical 19% Other 6% Technicians 25%

Managers 18% Professionals 32%

Telesat employee breakdown by category

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· an existing network of fixed service and broadcast service satellites and associated ground segment that will mesh effectively and seamlessly with the new satellites to be launched into the 118.7° WL position, providing back-up and expansion capabilities for critical services offered to Canadians;

· a successful international business that provides highly skilled employment opportunities and export earnings to Canada;

· a tradition of working closely with agencies of the Canadian government, such as the Communications Research Centre, the Canadian Space Agency, and with Canadian suppliers to develop the Canadian satellite industry; and

· consistent and pro-active participation and investment in the Connectedness Agenda.

Canada faces a critical decision in selecting who will develop the 118.7° WL orbital position. Maintaining a viable Canadian satellite service provider in the highly competitive global satellite arena is essential if Canada is to enhance and expand the services offered to all its citizens - no matter how remote from the major population centres.

Telesat has demonstrated a commitment to Canada throughout its history and is poised to continue this tradition of excellence in delivering satellite services for all Canadians.

Telesat Canada 9-2 March 15, 2001 Application to Develop and Operate a Ka-band Fixed-Satellite Space Station in the 118.7º WL Orbital Position VOLUME 1

The Government of Canada has a commitment to provide broadband access to all Canadians. Award of the licences at the 118.7° WL orbital position is key to realizing that commitment. Only through awarding the licences to Telesat can the Government realize its Connecting Canada vision in every corner of this vast country.

Telesat Canada 9-3 March 15, 2001