TIM FURNISS / LONDON

Pakistan may take legal action as French builder quits satellite communications project

Alcatel Space is considering investing $10 million in the Essel Group's Indian-led Agrani Satellite Services (ASC), which is planning to operate the $250 million, 24C-band, 14 Ku-band Agrani 2 satellite system.

Alcatel is contracted to build the Agrani satellite, while Arianespace may invest a further $5 million to secure the launch contract.

The Agrani system will provide direct broadcasting, internet access and other services to India and the surrounding regions. Agrani 2 will use the spacecraft bus built originally by Alcatel Space for the cancelled Spacebus 3000-based Thaicom 4, which has been instorage at the company's Cannes factory since 1997.

Agrani has had a controversial history, originally ordering twoHS-601 satellites from Hughes Space and Communications (now Boeing Satellite Systems) in 1995, under a $700 million contract which fell through in 1998 when funds could not be raised.

The company then ordered an A2100AX satellite from Lockheed Martin in the same year, but this deal went unsigned after the US State Department denied the craft an export licence.

Meanwhile, Alcatel has withdrawn from Pakistan's Paksat communications satellite project before it becomes liable for cancellation fees. It has been unable to co-ordinate the geostationary orbital (GEO) position at 39íE, which is also allocated to the Greek-led Hellasat project.

The company, which was awarded the $220-million satellite contract in 1997, says it has "done everything it could for the project", and prefers to leave the Pakistani Government "free to seek other solutions before the validity of the GEO position expires". Pakistan will lose the 39íE slot if it is not filled by April 2003 and is considering legal action against the company.

Pakistan originally planned a $500 million twin 26-transponder satellite system and has booked a GEO slot at 41íE.

Fokker Space did not supply the solar panels for the Space Systems/Loral-built FS-1300 PAS 7 spacecraft built for PanAmSat.

Source: Flight International