content distribution satellite wars


Paris-based satellite operator Eutelsat is involved in an increasingly bitter dispute with its arch-rival SES Astra, based in Luxembourg. The two giants are arguing over 500 MHz of satellite capacity at the 28.5 degree East position, which is used to beam hundreds of channels into the UK and Ireland. If Eutelsat loses the slot, it will also lose significant revenues. It is not currently clear whether SES Astra has included the potential revenues into its formal guidance to the market for anticipated earnings. Chris Forrester reports.


European satellite ‘wars’ intensify E


utelsat on 16 October filed a request for arbitration against SES with the Paris- based International Chamber of Commerce (ICC), arguing that SES Astra is in breach of an agreement signed with SES back in 1999 which co-ordinated the transmission of each party’s signals from 28.2 degrees East (over which there is no dispute) and 28.5 degrees East. SES is obliged to recognise the ICC arbitration process as it was a built-in legal safeguard to the core 1999 agreement.


“Eutelsat's position is that the agreement between SES and Media Broadcast, signed seven years ago, and only disclosed by SES in its release of 1 October 2012, violates the terms agreed in the 1999 Intersystem Coordination Agreement, specifically SES's commitment to respect Eutelsat's operations at 28.5 degrees East,” said Eutelsat in a statement.


Eutelsat also says that while Media Broadcast (which is owned by French


8 l ibe l november/december 2012 l www.ibeweb.com


The veiled threat is that the 1999 agreement between SES and Eutelsat could now be seen to be ended and this could well lead to a much more complicated life for the two transmission giants.


transmission company TDF Group) has the absolute right to end its contract with Eutelsat one year from now, it is not entitled to sell off the 500 MHz of bandwidth included within the agreement.


SES fired back a robust - and highly detailed - statement explaining bluntly why they believe they are on safe ground. In essence SES claims that they have acquired the disputed rights by means of a clear and above- board agreement with the company which actually owns the license to use the frequencies. Moreover, they say the rights have the backing of the German regulator as well as the ITU. SES says it ‘strongly disagrees’ with Eutelsat’s position and will ‘vigorously defend’ its rights.


The full statement says: “SES has been granted rights to use German Ku-band orbital frequencies at the 28.5ºE orbital position effective from 4 October 2013 onwards pursuant to a 2005 agreement with German media service provider, Media Broadcast (‘MB’) (as successor to T-Systems


“Eutelsat,” added SES, “is currently operating these frequencies on the Eurobird-1 satellite (also known as Eutelsat 28A) under a 1999


Business Services). MB holds a license for these frequencies issued by the Bundesnetzagentur, the German regulator, on the basis of German filings that have priority under the rules of the ITU. The agreement will give SES the right to use, on its fleet, 500 MHz of bandwidth at this orbital position adjacent to SES’s 28.2ºE in the frequency bands 11.45-11.70 GHz and 12.50-12.75 GHz in downlink and 14.00-14.50 GHz in uplink. SES has procured and will launch and operate new satellites (ASTRA 2E and ASTRA 2G) at 28.2ºE/28.5ºE, along with the recently launched ASTRA 2F satellite, to replace SES’s existing fleet at 28.2ºE and to provide new capacity. The new satellites in this neighbourhood will use the additional frequency spectrum as of October 2013 for DTH satellite television services in the UK and Ireland and for other services inside and outside of Europe.”


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