by Cynthia Boeke

In many respects, 1999 was a roller-coaster year in satellite history. It will be remembered as the year when two high-profile mobile satellite ventures declared bankruptcy, U.S. export controls put a crimp on global commerce, and launch delays made a huge dent in the rate of new spacecraft being orbited.

At the same time, a great deal of positive momentum was created, and money was made in the commercial satellite market, although these developments did not always make the biggest headlines. DBS sales soared, along with DBS company stocks. European operators made aggressive forays into the international arena, expanding their fleets at an unprecedented pace. Some existing companies continued their lengthy track record of continued profitability and quality in spite of the industry’s overall financial and technical disarray, demonstrating, in many ways, the best this industry has to offer. Innovative multimedia services began taking shape on an impressive scale, in some cases to the most unlikely areas of the globe.

It is achievements such as these that Via Satellite celebrates and recognizes in our annual Satellite Executive of the Year award. Each year, the Phillips Satellite and Space Group and a small cadre of top industry experts develop a list of leading candidates for the prize, which is given to the man or woman we believe has made the most significant contribution to the industry over the past calendar year. Below is our short list of top nominees for this year’s honor. Via Satellite’s Satellite Executive of the Year 1999 Award will be bestowed on February 3 at the Satellite 2000 conference in Washington, DC. We hope you will be present when we announce the winner.

Romain Bausch Director General Societe Europeene des Satellites

When it comes to rapid expansion, technical ingenuity and commercial savvy in the satellite market, Societe Europeene des Satellites (SES) is one of the first companies that comes to mind. As it has over the past several years, SES made an amazing array of contributions to the satellite industry in 1999. Among its myriad achievements last year, SES increased its DTH penetration in Europe, rolled out new multimedia offerings, continued the buildup of spacecraft in its two European slots, and partnered with an Asian satellite company. The chief architect of these accomplishments is Romain Bausch, one of the industry’s most sophisticated and astute executives.

A snapshot of the year’s efforts shows activities that cover the waterfront. In the market for Internet and Webcasting services, SES began creating a seamless intercontinental broadband IP distribution system, with the aim of establishing a "one-stop-shop" for broadcast and multimedia applications via satellite on a global scale. Financially, the company grew at an astounding pace. Revenues were up 36 percent during the first half of the year alone. In January 1999, SES became a strategic investor in Asiasat. The combined footprints of the two companies cover three-quarters of the world’s population. The Astra satellite fleet now features nine active satellites at two orbital positions, and four more Astra spacecraft are under construction.

Astra’s television audience in Europe during 1999 for the first time topped 77 million connected households, including 28 million households that receive signals via satellite. Astra’s digital pay-TV audience increased by more than 80 percent when it reached 3.3 million.

Continuing its pioneering efforts in collocating satellites, SES launched its ninth spacecraft into the 19.2 degrees E slot in 1999. The launch also was notable in that it marked the creation of the world’s first orbital position to offer Ku- as well as Ka-band capacity on a commercial basis. With this development, SES paved the way to become the first European satellite operator to develop the Ka-band frequency commercially for interactive and multimedia services in Europe.

In 1999, Astra continued developing its second orbital slot, 28.2 degrees E, from where the Astra 2A spacecraft is providing digital services to more than 2 million homes in the United Kingdom and Ireland after only 14 months of service. The company commissioned two additional satellites, Astra 2C and 2D, for this location, both of which will be launched before mid-year 2001.

SES has long been a pioneer in DTH services. In 1999, under Bausch’s leadership, SES is now blazing the trail for two-way, Ka-band services, and aggressively moving beyond its traditional European borders. SES’s accolades grow year after year. In this sense, 1999 was no different than any other 12-month period in the company’s history, thanks to the creative inspiration and tireless efforts of Bausch.

Giuliano Berretta Director General Eutelsat

This past year was a busy one for Eutelsat, the European satellite operator based in Paris. In fact, Eutelsat now operates one of the world’s largest satellite fleets, has set its sites beyond European borders, and is in the forefront of introducing some of the most innovative satellite services to date. It has made major strides on these fronts in 1999, thanks to the dedication, intelligence and drive of its new director general.

In 1999, Eutelsat took on a global dimension and was one of the new entrants in the world’s club of mega-operators. The organization now boasts one of the most advanced satellite fleets, with 15 spacecraft in orbit and six more under construction. Specifically, Eutelsat extended its coverage to four continents with the opening of its "Atlantic Gate" at 12.5 degrees W for transatlantic connections, signed its first user agreement with a North American company (Teleglobe), and ordered the Atlantic Bird 1 satellite. From the perceived challenger position in the 28.2/28.5 degrees E orbital arc it brokered a historic intersystem coordination agreement with SES as a result of which it opened services at 28.5 degrees E. Deutsche Telekom’s DFS Kopernikus satellite at 28.5 degrees E was integrated into the fleet and follow-on capacity ordered in the form of Eurobird. Eutelsat also integrated into the fleet a Telecom 2 satellite from France Telecom, ordered Hot Bird 6 and launched the W3 satellite into 7 degrees E.

On the services front, Eutelsat established broadband, interactive services in Europe with the launch of consumer high-speed Internet access products and two-way Ku-band solutions for corporate communications; fully commercialized its onboard multiplexing service, Skyplex; and launched bandwidth on demand services using DAMA technology. In the realm of satellite-delivered television, Eutelsat continued to develop and market the Hot Bird constellation of five collocated, high-power satellites for entertainment TV and multimedia services. Its offer of digital free-to-air TV grew to be the largest in Europe with over 100 channels.

These achievements could not have been made without the leadership of Berretta. In a surprisingly non-traditional move, Eutelsat promoted Berretta from commercial director to director general, rather than bringing in a high-level civil servant from outside. The move underscores Eutelsat’s drive to become more market-oriented and recognizes Berretta’s long string of technical and commercial accomplishments. Among other things, Berretta is credited with creating and implementing Eutelsat’s highly successful Hot Bird system of direct-to-home satellites in response to the SES Astra system.

On the political front, Eutelsat is rapidly shedding its reputation as a slow-to-react organization composed of government-run monopolies, a development that will no doubt continue under Berretta’s leadership. This past year, Eutelsat’s member governments decided to speed up Eutelsat’s privatization process, which must now be completed no later than mid-2001.

To bring Eutelsat into this new operating environment, Berretta will draw on his qualities of vision and strategic intuition, and on his impressive track record of policy, commercial and managerial achievements. With Berretta at the helm, Eutelsat’s position as a world player has strengthened in 1999, a process Via Satellite expects to continue in the years to come.

John F. Connelly Chairman and CEO GE American Communications

In a year of significant technical and business turmoil in some high-profile sectors of the satellite market, GE Americom represented, in many ways, the best the satellite industry has to offer. This past year, GE Americom continued to deliver an extremely high quality of service, and maintained stability and profitability. At the same time, it executed a well-calculated plan to expand service offerings and extend GE Americom’s reach around the world.

These achievements, often ignored in the midst of more turbulent industry news, could not have been made without the steady hand of John Connelly. Thanks to Connelly’s dedication, determination, and unswerving commitment to technical quality, GE Americom’s fleet is among the most stable, reliable and technically superior in the world. At the same time, Connelly has steadily advanced GE Americom’s global activities in a calculated way that virtually ensures their profitability.

As in years past, GE Americom has taken what could be termed a "build, not buy" position, in which GE Americom makes smaller investments and then builds upon them. And, although several satellite properties have no doubt become available, GE Americom has assiduously stayed away from what might be labeled "overpriced" or "overvalued" companies. As a result of this strategy, GE Americom is not burdened with significant debt, although it has steadily invested in spacecraft for its fleet.

But there should be no doubt about it, GE Americom is expanding into the global arena, a process that began in the mid-90’s with several international slot authorizations, its co-marketing agreement for the European Sirius satellite, and financial investment in Argentina’s Nahuelsat system. In 1999, GE Americom purchased Columbia Communications, and announced plans to purchase two new international spacecraft to place in Columbia-controlled orbital slots. In November 1999, the company also launched GE 4, a pan-American bird that makes GE an even more active player throughout the Americas.

Quality is paramount at GE Americom, and in an era of unprecedented satellite and launch related anomalies, the word takes on an almost religious fervor. (One hears GE Americom officials describe their "ferocious pursuit" of Six Sigma quality, a measure that equates to less than four defects per million.) In keeping with GE Americom’s reputation of being somewhat conservative, the company is committed to using technologies and systems that are tried and true rather than new and risky. In that regard, for instance, GE Americom entrusts its spacecraft to launch vehicles whose previous two launches have been perfect. And, GE Americom is known to scrutinize the work of its manufacturers, both at the system and sub-system levels, so that its quality and redundancy standards are met. The result is one of the most trusted satellite fleets in the world.

Under Connelly’s steady hand, GE Americom in 1999 has been able to ride out economic downturns while making wise investments. At the same time, Connelly has shown his adeptness at navigating in a business environment where, as he puts it, "one’s customer could become one’s vendor, or partner, or competitor, and one’s supplier could become one’s partner and then one’s competitor." Connelly’s accomplishments in 1999, we believe, demonstrate the long-term, evolutionary path of growth, profitability and stability the satellite industry has to offer.

Charles Ergen President, Chairman and CEO Echostar Communications Corp.

Talk to almost any financial analyst tracking the satellite market, and he or she will tell you the DBS sector saved the industry’s financial reputation in 1999. Leading the way in the United States is Charlie Ergen, president, chairman and CEO of the wildly successful DBS effort, Echostar Dish Network. His achievements in 1999, which are almost too numerous to mention, include changing the very paradigm of television transmission and reception in North America. His efforts to bring local signals to DBS viewers, excellent financial return to investors, ongoing growth in subscribers, and overall business acumen make him a leading contender for Via Satellite’s 1999 Satellite Executive of the Year Award.

Thanks to Ergen’s shrewd maneuvering, Echostar Dish Network has become the only surviving DBS start-up to remain in competition with the industry behemoth, General Motors-backed DirecTV Inc. And despite entering the market years after DirecTV, Echostar dish Network now challenges the front runner each month in winning new subscribers. By the second half of 1999, Echostar Dish Network had over 3.1 million subscribers and became a leader in offering affordably priced programming packages tailored to customer preferences and introducing new products and services, including the award-winning Dishplayer receiver.

In 1999, DBS was catching on like wildfire with U.S. consumers, a trend that is expected to grow even faster with presidential inking in late November of legislation that would allow satellite TV providers to offer local channels to their customers for the first time. And, although the bill did not meet all of Echostar’s goals, Ergen was instrumental in lobbying lawmakers directly for its passage.

As a result of Ergen’s unceasing efforts, Echostar’s stock price has soared, been split twice to cut its price per share, then ran up yet further. Such positive results provide a stark contrast to the bankruptcies of multi-billion-dollar satellite telephone systems, and made Echostar a darling among investors. In 1999, the satellite industry was a winner, thanks to Charlie Ergen.

Noah A. Samara Chairman and CEO Worldspace Corp.

Last year marked the culmination of one man’s vision to bring information via satellite directly to people throughout Africa. Noah Samara saw his dream become a reality with the introduction of the Worldspace direct-to-user, digital audio and multimedia service over the Afristar satellite in 1999.

Nine years ago, Samara left his thriving practice as a legal and business advisor to satellite and communications businesses to embark on the path that would eventually lead to the launch of the Afristar satellite in 1998 and the initiation of the Worldspace service in 1999. The obstacles he overcame were numerous, not the least of which was the skepticism he faced along the way.

Thanks to his tireless efforts, Worldspace received a license from the FCC-the first of its kind ever granted-to build, launch and operate the Afristar satellite for digital sound broadcasting to the African-Arabian region. (Subsequently, the administrations of Australia and Trinidad and Tobago granted authority to operate the Asiastar and Ameristar satellites, respectively.) Samara played a galvanizing role at the World Administrative Radio Conference in 1992 that established a global allocation for satellite digital audio broadcasting in L-band frequencies. He secured the involvement of industry veteran Dr. S. Joseph Campanella, who created an end-to-end design of the Worldspace system, providing digital direct audio broadcasting from satellites to personal portable receivers. He raised more than $1.1 billion from private sources to finance the construction of the infrastructure and operation of the company. He assembled a world-class team to build and launch the satellites and mass manufacture a new generation of personal, portable satellite receivers.

In October 1999, Samara flipped the ceremonial switch that inaugurated the world’s first direct-to-person satellite audio broadcasting service. In doing so, he set another precedent: it was the first time a cutting-edge communications technology made its debut in Africa. With this action, Samara will serve as an example to inspire both existing satellite firms and entrepreneurial entrants to find ways of bringing satellite services directly to individual consumers in the developed and developing worlds alike.

Cynthia Boeke is the Editor of Via Satellite.