NEW YORK, June 4, 2010 (GLOBE NEWSWIRE) -- Loral Space & Communications Inc. (Nasdaq:LORL) today announced that Barrett Xplore Inc., Canada's largest rural broadband provider, has elected to maximize its capacity usage on Loral's payload on the ViaSat-1 broadband satellite. Under the agreement, Loral will receive lease payments of CAD 262 million over the life of the satellite, for use of its geostationary (GEO) capacity over Canada.
"Barrett Xplore's decision to exercise its maximum option of 100 percent of Loral's Ka-band capacity on ViaSat-1 (not including that portion of the capacity that uses the non-geostationary orbit spectrum) validates our confidence in the strong and growing importance of broadband over satellite," said Michael Targoff, chief executive officer of Loral Space & Communications. "We are very pleased to help facilitate Barrett Xplore's delivery of high-quality Internet service to rural homes and businesses in Canada."
Loral agreed to invest in the Canadian payload on ViaSat-1, a high-throughput, next-generation broadband satellite, when it was procured in early 2008. The satellite is currently under construction at Space Systems/Loral and is scheduled to begin service in mid-2011. Barrett Xplore will use the Loral capacity, which provides approximately 12 Gbps throughput, to deliver a robust customer experience for accessing future bandwidth rich Internet applications.
"Our strong working relationship with Loral means that more Canadians will have the infrastructure they need to fully participate in the global economy," said John Maduri, CEO at Barrett Xplore. "ViaSat-1's spot beam design and high capacity Ka-band transponders will help us meet our commitment to providing high-quality broadband service to rural Canadians. This satellite capacity is an integral part of the hybrid-technology strategy we are taking to maximize the availability of our services across Canada."
About Barrett Xplore Inc.
Headquartered in Woodstock, New Brunswick, Barrett Xplore Inc. operates Xplornet Internet Services, Canada's largest rural broadband provider, with customers and dealers in every province and territory. Barrett Xplore aims to bridge the urban/rural digital divide by ensuring that every Canadian, regardless of where they live, has access to broadband, thereby enabling them to compete effectively in the global economy and gain access to essential government and educational services. For additional information, please visit www.xplornet.com.
About Loral Space & Communications Inc.
Loral Space & Communications is a satellite communications company. It is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including fixed satellite services, direct-to-home television, broadband communications, wireless telephony, weather monitoring and air traffic management. Loral also owns 64 percent of Telesat Canada, a global operator of telecommunications and direct broadcast satellites used to distribute video entertainment programming, broadband data, and provide access to Internet services and other value-added communications services. For more information, visit Loral's web site at www.loral.com. LORL-G
This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, the words "believes," "expects," "plans," "may," "will," "would," "could," "should," "anticipates," "estimates," "project," "intend" or "outlook" or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. In addition, Loral Space & Communications Inc. or its representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made from time to time with the Securities and Exchange Commission, and press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties which are described as "Risk Factors" and in the "Commitments and Contingencies" note to our financial statements in the most recent Form 10-Q and in Loral's annual report on Form 10‑K. The reader is specifically referred to these documents, as well as the company's other filings with the Securities and Exchange Commission. Risks and uncertainties include but are not limited to (1) risks associated with financial factors and our investment in Telesat Canada, including the global economic downturn, our history of losses, financial covenants in SS/L's credit agreement, the structure of our investment in Telesat, Telesat's leverage and volatility in Canadian/U.S. exchange rates; (2) risks associated with satellite manufacturing, including competition, contractual risks, creditworthiness of customers, performance of suppliers and management of our factory and personnel; (3) risks associated with satellite services, including dependence on large customers, launch delays and failures, in-orbit failures and competition; (4) regulatory risks, such as the effect of U.S. export control and economic sanction laws and U.S., Canadian and foreign government regulation of satellite services; and (5) other risks, including possible conflicts of interest with our significant shareholder, litigation and market risks. The foregoing list of important factors is not exclusive. Furthermore, Loral operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond Loral's control.