EADS-owned Paradigm Secure Communications is to build and launch a third Skynet 5 communications satellite for the UK armed forces after late last year completing a financial restructuring of the private finance initiative (PFI) project, worth around £2.8 billion ($4.8 billion).

“A three-satellite constellation means better performance, more efficiency and longer service availability,” says the company, which adds that it is cheaper to produce and field the third system and order long-lead items for a fourth as “back-ups” than to insure the originally planned two-satellite constellation. Arianespace will launch the Skynet 5A and 5B payloads in mid-2006 and 2007 respectively, and 5C will now follow in late 2008, also using an Ariane 5 launcher.

Paradigm assumed responsibility for the UK’s four Skynet 4 secure communications satellites in late 2003 and has so far sold spare capacity on the current and future systems to Canada, France, NATO, the Netherlands, Portugal and another undisclosed country. “We are also pursuing a number of other opportunities in Europe and elsewhere,” says business development director Paul Millington. Around 75% of the capacity available on the first two X-band Skynet 5 systems has already been allocated, he says.

The UK Ministry of Defence has meanwhile agreed to extend the duration of its Skynet 5 deal by at least two years until 2020, but says this will not increase programme costs.

Paradigm finance director James Beazley says that placing the design and build phase with EADS and in-service support with the MoD has “brought the costs down considerably” against an original plan to divide their 50:50 funding across the project’s life.

CRAIG HOYLE/LONDON

Source: Flight International