State Dept. can’t use budgeted funds to process satellite export licenses to China unless it gives 15 days’ notice to appropriations committees in both houses for each licensing action, Senate Appropriations Committee said last week. Under Commerce-Justice-State budget bill marked up July 19 by Senate panel, advance notice to both committees would be required before State could begin processing application for export of U.S.-made commercial satellites and satellite components.
Exports to China
Americom Asia-Pacific said it began offering occasional use service on GE-1A satellite over Asia to international customers Tues. Company said satellite serves China, south Asia including India, northeast Asia including Phillippines. Service allows broadcasters, programmers and news agencies to book occasional satellite transponder space segment online using Stars Online web- enabled interface, company said. American customers had been using service since end of 2nd quarter last year, spokeswoman for company said. It said service was only Web-enabled reservation system available.
Top Senate Democrats, including Majority Leader Daschle (D- N.D.) urged President Bush Mon. not to allow “unnecessary delays” in opening “at least some” of 1755-1850 MHz band for commercial users eager for 3rd generation wireless spectrum. “In recent years, Congress has mandated safeguards to ensure that DoD does not surrender frequencies in such a way as to compromise its mission capabilities,” said letter written by 7 Senate Democrats. “But executive agencies must take the initiative to drive the process forward.” Senators didn’t criticize recent FCC action to delay decision on which spectrum bands should be allocated for advanced wireless uses beyond July 2001 deadline set out in executive order by then President Clinton last Oct. “While this schedule may no longer be realistic, the Administration should move forward as rapidly as possible.”
Some top satellite manufacturers companies may be forced “out of business” in next 2 years unless they merge or form strategic partnerships, or market demand dramatically improves, industry officials said. Analysts predict there will only be 25 satellite manufacturing contracts available in next 2 years, down from 60 this year. “There are 5 or 6 major players competing for 25 satellite manufacturing contracts,” Satellite Industry Assn. (SIA) Pres. Clay Mowry told us: “That’s a lot of manufacturers competing for a relatively small marketplace. The competition is pretty intense.”
AsiaInfo Holdings signed contracts worth $1.6 million with China Mobile to provide software and integration services that will enable carrier to provide wireless data services. AsiaInfo will provide messaging software that establishes connection between China Mobile’s GSM network and its wireless Internet network. AsiaInfo’s billing and customer management software will be deployed in Chongqing and Sichuan for providing wireless data services and billing clearance.
Problems that led to imposing strict export controls on satellites were “exaggerated, off target, political, a disaster for the industry and a disaster for national security,” said William Reinsch, pres., National Foreign Trade Council, and ex- Commerce Dept. (DoC) undersecy. for export administration under President Clinton. At Stimson Center conference on U.S. export controls on space-related technologies in Washington Tues., he said Hughes-Loral flap in 1998 that led to transfer of satellite export controls to State Dept. (DoS) from Commerce didn’t help China as much as opponents argued: “China received the most help from Russia.” Reinsch said actual drop in U.S. market share may vary according to estimates, “but nobody says it hasn’t dropped significantly.”
Motorola said Tues. it signed 3 contracts worth $34.4 million to expand China Mobile Communications GSM network. Scheduled to be complete by year-end, expansion will increase carrier’s GSM 900 and 1800 network capacity by half-million users in Beijing, Guizhou and Henan province. In last 2 months, China Mobile has awarded Motorola more than $500 million for expansion of GSM networks, company said.
Nortel will expand existing GSM wireless systems for China Unicom under $270 million contract that covers 900 MHz and 1800 MHz networks in 7 provinces. Companies said expansions were expected to be complete by end of year and would create foundation for starting wireless Internet services in China. Nortel said network expansion would increase China Unicom’s GSM capacity to 11.6 million subscribers from 7.1 million. Equipment covered includes switches, radio base stations, technology for tripling GSM base capacity. Infrastructure will be upgraded in Henan, Hunan, Ningxia, Shandong, Shanxi, Xinjiang and Zhejiang provinces.
Warnings from No. 2 man at U.S. Space Command (USSC) on ability to deal with space-borne threats to military and commercial satellites, including communications satellites, led to sharp criticism from Rep. Abercrombie (D-Hawaii) at joint hearing of House Armed Services subcommittees Wed. Abercrombie told Lt. Gen. Edward Anderson, deputy commander in chief and chief of staff of USSC: “We are very, very concerned about whether or not our military capabilities are being compromised because of commercial greed.”
Gilat said it won 2 contracts: (1) With Jingxin Hero to provide broadband Internet connectivity throughout China using VSAT satellite communications network. Jingxin also plans to use network to offer high-speed IP-based applications, including corporate intranet and IP multicasting, Gilat said. Network implementation is to begin in July and finish by end of year. (2) With Bharti Broadband Networks to provide VSAT network services for businesses in India.