Application to Develop and Operate a C and Ku-band Fixed- Space Station in the 118.7º WL Orbital Position

EXECUTIVE SUMMARY

Working with Canadians Today to Meet the Needs of Tomorrow

The 118.7° WL Orbital Position: C and Ku-band

Orbital positions and their associated radio spectrum are the raw materials of the satellite industry. Canada has the last two Fixed Satellite Service (FSS) positions in the geostationary orbital arc that provide good C and Ku-band coverage of North America. The administrations of the U.S. and Mexico have allocated all of their FSS orbital positions to their respective domestic satellite operators. This Canadian resource should be developed, held and controlled by Canadians, for Canadians.

“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

No other Canadian company can match Telesat's knowledge of the Canadian marketplace, Telesat’s technical expertise, satellite systems knowledge, or financial depth. The 118.7º WL spectrum is essential to maintain Telesat’ s growth and Telesat viability as a competitor in the dynamic North American satellite market.

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

Telesat’s Solution

Telesat is the only Canadian entity that can deliver the Canadian fleet of necessary to ensure that Canada retains its presence and leadership role in the global satellite industry. Telesat has a 30-year tradition of delivering on its commitments to government and to its customers. Only Telesat has the satellite expertise, Canadian market experience and the proven commitment to deliver state-of-the-art satellite services to all Canadians. The 118.7° WL orbital position is essential to continue this tradition.

Key features of Telesat’s proposal include:

· a design that meets the needs of Canadian broadcasters and business enterprises;

· full compliance with all of Industry Canada’s requirements in the Call for Applications ;

· a Canada-first approach, under which all capacity on the satellite at 118.7° WL is made available on a priority basis to Canadians; and

· the overwhelming support of those with a stake in the strategically- important Canadian satellite industry.

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

“Telesat is a Canadian success story in the international satellite industry. Through its initiative, technological advances and commitment to consistently delivering superior satellite services to all parts of Canada, Telesat is the Canadian broadcasters’ carrier of choice. Today, Telesat’s satellites deliver virtually all of Canada’s programming to networks, cable-headends and DTH consumers across the country.” Michael McCabe, President and CEO Canadian Association of Broadcasters March 2, 2001

“NorthwesTel believes that Telesat’s application is compelling as it provides all Canadian satellite users the additional capacity to grow and increase their scope in the Americas. By awarding 118.7° WL licenses to an established Canadian satellite operator, Telesat’s position will be strengthened in the North American satellite market and, in turn, so will those of Canadian broadcasters, consumers and businesses who have depended on Telesat’s satellites for almost 30 years.” Paul Flaherty, President NorthwesTel Inc. March 2, 2001

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. Telesat must augment its satellite infrastructure to expand existing satellite services and provide new services to Canadians.

Benefits to Canada

A strong Canadian satellite operator is critical to Canada’s continued development in the new knowledge-based economy. Telesat is confident that no other company can match Telesat’s proposal in the scale and scope of benefits to be delivered to Canada, its citizens, its business enterprises, and the Canadian satellite industry.

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

The benefits to Canada of Telesat’s satellite at the 118.7°WL position include:

· the addition of FSS capacity to Canadian satellite users for the purposes of service expansion and back-up to the existing Canadian fleet;

· offering capacity on the new satellite to Canadians on a priority basis;

· full-Canada coverage and capacity for the delivery of advanced services to underserved areas and to aboriginal communities;

“Keewaytinook Okimakanak wants to continue to work in partnership with Telesat Canada to research and develop new applications that will support the sustainability of the remote communities we serve.” Brian Beaton, Co-ordinator Keewaytinook Okimakanak January 17, 2001

· Telesat’s commitment to ensuring maximum usage of Canadian subsystems in the new satellite, as well as to encouraging export opportunities for Canadian equipment suppliers. This fosters innovation and highly skilled employment in Canada; and

· the successful fulfilment of all public policy objectives.

“CBC has had a long-standing business relationship with Telesat Canada and feels that only Telesat Canada has the demonstrated foresight, planning, technical and service excellence which will ensure that the 118.7 degrees West Longitude orbital location will be used for the maximum benefit of Canadians.” Robert Rabinovitch, President and Chief Executive Officer CBC March 9, 2001

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

The has established the vision to bring to each and every Canadian the benefits of modern . Telesat has developed a solution that will realize this vision.

Telesat Canada Abridged - 5 - March 15, 2001