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The Vietnam News

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Bids for Vietnam's first satellite in final lap

HANOI - Companies from France, America, Russia and Japan are in the final stages of bidding to build and launch Vietnam's first satellite, but experts say Hanoi must first agree to coordinate its orbit with Tonga and Japan. Cut down from eight, the race for the $200 million communications satellite is down to consortia led by the U.S.'s Lockheed Martin Corp , EADS Astrium-Alcatel of France, NEC -Toshiba -Sumitomo Corp of Japan with America's Orbital Sciences . Another Russian firm, the state-run NPO PM, is on the list.

A result will be announced at the earliest, "before the end of this year", Luu Van Luong, senior expert on satellite communications told Reuters on Wednesday on the sidelines of an Asia-Pacific Satellite Communications Council conference. If the contract is signed by year-end, the communications satellite called Vinasat to be used to expand telecoms, radio and television services would be launched and operational by early 2006, the bidders said. But before Vinasat is shot into its registered orbital slot of 132 degrees east, Vietnam needs to ensure it has agreements from countries with overlapping slots -- Japan and Tonga. Without proper coordination, the project could be derailed, experts say.

First come, first serve

The registration, done with Geneva's International Telecommunication Union, "is (satellite) access on a first come, first serve basis", said Jorn Christensen, head of a Canadian consultancy that bears his name. "They (Vietnam) would have to coordinate with everyone in front of the line," he said. That includes Tonga, which has rights to 130 degrees east and 134 degrees east but has no satellites of its own and leases one from China. In some of these cases, governments have been willing to sell their rights to the slots.

Hanoi said it is confident the talks would be concluded favourably. "The process needs to continue, but we are optimistic we will be able to finalise (them) on time," Luong said. Vinasat is scheduled to have up to 28 transponders, each carrying four to six television channels, and have a 15-year lifespan. It is expected to take over local communications services currently leased from foreign satellites including those from Thailand and Indonesia and expand the reach of TV, radio and Internet networks to more rural locations.

Lockheed Martin, the world's biggest defence company, was one of the four bidders that went through a round of questioning in September by the Vinasat evaluation committee. If chosen, Lockheed would build the A2100 satellite which would be sent into orbit with a Proton launcher. Financing is also secure, said Jim Gribbon, Singapore-based director of business development for Lockheed. "We feel confident we can supply up to 100 percent from a combination of the U.S. Exim Bank guarantees and international commercial banks."

Satellite maker Orbital Sciences, which is with the team of the three Japanese bidders, says Vinasat will expand Vietnam's business and economic infrastructure. Eddie Kato, vice president of marketing and business development at Orbital Sciences, said bidders were now in a wait-and-see mode. "Right now it's quiet and we think the customer is thinking about it."

By Christina Toh-Pantin - Reuters - October 08, 2003.