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TELESAT, NORTEL FORM SATELLITE VENTURE

OTTAWA-Canadian satellite operator Telesat and Northern Telecom Inc. announced an agreement to jointly develop a geostationary satellite system to deliver telephony services to underserved areas of the world.

The next-generation system is expected to feature increased transponder capabilities that enable smaller and more cost-effective satellite dishes, said the companies. Telesat and Nortel plan to announce additional partners in the next few months.

“Over 60 percent of the world’s population has never placed a telephone call,” said George Brody, vice president of Wireless Network Solutions at Nortel. “Telesat’s experience in satellite operations and space segment consulting and Nortel’s expertise in telecommunications infrastructure make us natural partners to deliver cost-effective, satellite-based telephony solutions to this market.”

The companies have been working to define exactly what market opportunities exist for the venture and then plan to design network solutions and establish partnering strategies in those markets.

Both companies also recently announced research and development initiatives with the Canadian Space Agency to develop advanced satellite network systems.

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