PanAmSat says customers using its PAS-7 Indian Ocean Region satellite have been unaffected by a technical difficulty with one of the solar arrays on the Space Systems Loral built FS 1300 GEO sat.
PAS-7 recently experienced a reduction of approximately 25 percent of its power capacity as a result of the condition; however, the company emphasized that it expects the satellite to continue to serve existing customers.
"We are committed to taking care of our customers on PAS-7. Fortunately, even with the power degradation on PAS-7, the satellite has more than enough power capacity remaining to serve all customers with a safe margin to spare for their services," said Robert Bednarek, PanAmSat's executive vice president and chief technology officer.
"We will continue to monitor the satellite closely to ensure it maintains the high performance standards that our PAS-7 customers have been receiving, and we fully expect the satellite to continue to meet our customer needs for the foreseeable future."
Bednarek said the company is working with the satellite manufacturer to determine the long-term implications on the satellite. PAS-7, an FS 1300 model satellite built by Space Systems/Loral, was launched in September 1998 and carries 14 C-band transponders and 30 Ku-band transponders.
It provides video, direct-to-home and telecommunications services throughout Europe, the Middle East, Africa and Asia from 68.5 degrees east longitude. PanAmSat also operates the PAS-10 Indian Ocean Region satellite at the same orbital location and the PAS-4 spacecraft that is available for additional backup capacity in the region.
PanAmSat maintains a policy of insurance on this satellite in the approximate amount of $250 million.
The company has made the preliminary determination that this event will constitute a Total Constructive Loss under the policy, which occurs for insurance purposes when 20 percent or more of the capacity on the satellite is lost.
The company does not expect a material impact on projected 2001 revenues as a result of PAS-7's condition, and will provide financial guidance for 2002 on October 16 when it issues its third quarter results.
