SES AND EUTELSAT SETTLE THEIR DISPUTE AND CONCLUDE A SERIES OF AGREEMENTS CONCERNING THE 28.5 DEGREES EAST ORBITAL POSITION
Luxembourg/Paris, 30 January, 2014 – SES (NYSE Euronext Paris and Luxembourg Stock Exchange: SESG) and Eutelsat Communications (NYSE Euronext Paris: ETL) announced today that the two companies have concluded a series of agreements including a comprehensive settlement of legal proceedings concerning the right to operate at the 28.5 degrees East orbital position and containing long-term commercial as well as frequency coordination elements.
The first agreement ends the arbitral procedure between Eutelsat and SES that was initiated in October 2012 under the rules of the International Chamber of Commerce (ICC) in Paris. The dispute concerned a right of use of 500 MHz spectrum at the 28.5 degrees East orbital position. Eutelsat ceased to operate this spectrum on 3 October 2013 and SES has operated this spectrum since that date. The dispute over this right of use has now been resolved, with SES continuing to operate its satellites at this location, and Eutelsat independently commercialising part of the capacity of the previously disputed frequencies.
According to the second agreement between both companies, Eutelsat has therefore contracted long-term satellite capacity on the SES satellite fleet at the 28.5 degrees East orbital position. Eutelsat will commercialise over Europe on the SES fleet 125 MHz (eight transponders) of the formerly disputed 500 MHz. Eutelsat will also commercialise on the SES fleet the 250 MHz (12 transponders) which was not the subject of the legal proceedings. The 20 transponders will be operated on three new satellites which SES is deploying at the 28.2/28.5 degrees East neighbourhood – ASTRA 2F, ASTRA 2E and ASTRA 2G – of which the first two have been launched and are operational, while the third is planned for a launch later this year.
The third agreement between the two companies addresses technical frequency coordination under the rules of the International Telecommunication Union (ITU). It will allow both parties an optimised use of their respective spectrum at a number of orbital positions over Europe, the Middle East and Africa. It confirms and clarifies in technical terms the geographic coverage and transmission power levels for frequencies at these positions.
"The agreements with Eutelsat create a secure framework for operations in major broadcasting and data markets in Europe, Middle East and Africa", said Romain Bausch, President and CEO of SES. "They are beneficial for our whole industry and, above all, for our customers and end users as they experience optimal satellite services. The agreements allow SES to fully leverage its satellite and fleet investments and operate its assets and frequency spectrum efficiently. We can focus on further commercialising our satellite capacity and ensuring excellent services for customers and users worldwide."
Michel de Rosen, Chairman and CEO of Eutelsat, said: "Guided by key objectives to deliver clients impeccable service and to optimise spectrum use, Eutelsat and SES have taken a pragmatic and business-like approach to reaching this settlement. These long-term agreements clarify the conditions for interference-free operations, enabling each company to independently expand its commercial activity in a competitive environment. Eutelsat is committed to delivering innovative services at one of the most vibrant neighbourhoods in the broadcasting market and can now further improve the productivity of its in-orbit resources and future investments."
For further information please contact:
Tel: +352 710 725 500
Tel: +33 1 53 98 37 91
SES is a world-leading satellite operator with a fleet of 55 geostationary satellites. The company provides satellite communications services to broadcasters, content and internet service providers, mobile and fixed network operators and business and governmental organisations worldwide. SES stands for long-lasting business relationships, high-quality service and excellence in the broadcasting industry. The culturally diverse regional teams of SES are located around the globe and work closely with customers to meet their specific satellite bandwidth and service requirements. SES (NYSE Euronext Paris and Luxembourg Stock Exchange: SESG) holds participations in Ciel in Canada and QuetzSat in Mexico, as well as a strategic participation in satellite infrastructure start-up O3b Networks.
About Eutelsat Communications
Established in 1977, Eutelsat Communications (Euronext Paris: ETL, ISIN code: FR0010221234) is one of the world's leading and most experienced operators of communications satellites. The company provides capacity on 34 satellites to clients that include broadcasters and broadcasting associations, pay-TV operators, video, data and Internet service providers, enterprises and government agencies. Eutelsat’s satellites provide ubiquitous coverage of Europe, the Middle East, Africa, Asia-Pacific and the Americas, enabling video, data, broadband and government communications to be established irrespective of a user’s location. Headquartered in Paris, with offices and teleports around the globe, Eutelsat represents a workforce of 1,000 men and women from 32 countries who are experts in their fields and work with clients to deliver the highest quality of service. For more about Eutelsat please visit: www.eutelsat.com