[Satellite News – 1-25-08] The acquisition of Telesat Canada
by Loral Space and Communications
, completed in October, instantly created the fourth largest fixed satellite services operator in the world. The company's 12-satellite fleet is far smaller than its larger rivals but gives Telesat a strong North American presence, a stronger footprint in international markets and a global teleport and fiber infrastructure.
“We have enhanced our competitive profile through our merger with Skynet and I believe that Telesat and Skynet,” Telesat president and CEO Dan Goldberg, said. “Even before combining we were competing effectively in their respective markets, but I do believe that the larger operators benefit from their greater scale, which is one of the reasons we've seen our industry consolidating. We'll gain additional scale when we place into orbit the three satellites that we now have under construction, and we'll continue to look for additional ways to sensibly grow our business.”
Some industry observers have proposed a linkup between Telesat and Eutelsat, the third largest communications satellite operator.
“Telesat and Eutelsat are complementary businesses that would fit together well, but I would say that Eutelsat has a lot of growth opportunities that they are pursuing,” he said. “I watch what they are doing with great interest, including their Ka-band activities and their S-band plans. They have a lot of opportunities they are focused on. We have a lot of opportunities that we are focused on. I would say while there are lots of good theoretical combinations that might exist out there, all of us are focused on the here and now and growing our businesses, and if there is value to be created for shareholders and we can all effectively serve our customers by considering some consolidation opportunities in the future, I'm sure everyone will be pragmatic about that going forward.”
Goldberg spoke with Satellite News
about the challenges facing Telesat as well as the future of the fixed satellite services sector.
Satellite News: Do you see Telesat becoming more of an international force as a result of this deal?Goldberg:
Now that we have created a global satellite platform by combining the Telesat and Skynet fleets, yes, Telesat will be a much more active player in the international arena. We believe demand will continue to grow strongly in many regions around the world and our existing and planned satellites are well positioned to capture that demand.