AssureSat Inc., a company established to provide satellites in orbit to step in when there is a launch failure or a satellite already in service fails, has awarded Space Systems/Loral [LOR] a contract for the construction of two satellites.

When launched from The Boeing Co.’s [BA] Sea Launch platform, beginning in 2002, AssureSat will provide the industry’s first on-orbit back-up protection. The satellites will carry 36 C-band and 36 Ku-band transponders and steerable antennas that can provide variable footprints in either or both bands.

The contract calls for SS/L to deliver the satellites on orbit. Its price is estimated to range from $300 million to $400 million, according to industry sources.

“Based upon historic satellite launch and in-orbit failure rates, we estimate an average of two or three launch [failures] and one to two in-orbit failures a year – with few options for recovery, said Jerald Farrell, president and CEO of AssureSat. “The need for our unique service is obvious. Indeed, the initial reaction to the concept within the industry has exceeded our own high expectations. We expect to announce additional customers in coming months,” he added.