Telesat has been working determinedly on a multibillion-dollar project that is named 298-Telesat LEO constellation, Canadian Satellite fleet operator, which is expected to declare the vendors tasked with the constructing as well as launching satellites for the project. This company is in discussions with potential vendors before the award of the contracts. With the entity already having signed some of its contracts, the CEO, Dan Goldberg, is confident that Telesat will be able to announce the contractors by the year’s end. The contacts that have been signed include the selection of Blue Origin’s New Glenn rocket to propel between 30 and 35 Telesat LEO satellites and Relativity Space’s Terran 1 vehicle to heave a sole 800-kilogram Telesat Leo satellite into space in each launch.
According to Goldberg, Telesat looks to make investments on cash obtained from currently running operations and the C-band clearing payments. The company also looks to source for funding from export credit organizations in both North America and European areas, which most of the contents for the project will be manufactured. The company is expected to acquire 344 million US dollars to clear the C-band spectrum in the United States, and other similar expenses may be obtained from the Canadian administration. With the Canadian administration considering Telesat’s proposal to clear 400 megahertz for 5G services, Goldberg stated that they were no sure of the Canadian government’s actions. According to the CEO, Telesat looks to use any proceedings that will be accorded to them from the proposal to make Telesat LEO investments. However, it’s still premature to estimate the magnitude of the proceedings.
With concerns being aired that Telesat is looking at making a preliminary open offering to get capital for the project, Goldberg did not give a concrete response on the speculations but stated that if the company would consider going public or issue equity in the process, then any proceeds gained would be channeled to the LEO project. With the industry being faced with numerous trials, comprising cord-cutting in the video market, the Telesat administrators are pushing for the chance to satisfy the claim for broadband connectivity with Telesat LEO. The company is aslo0 responsible for supporting the Lockheed Martin’s campaign to manufacture ten satellites for the Pentagon’s Space Development Agency via the exploitation of small buses from Tyvak Nano-Satellite Systems.
For the quarter ending September 30, Telesat recorded revenues of $202 million, which was a 15 percent fall from the $237 million in the same time last year. For the initial three quarters of the year 2020, the company recorded a $619 million revenue, a fall from $691 of the previous year. Goldberg attributed the almost 10 percent decline to increased expenses due to partial increment in compensations related to the Telesat LEO.