The Mexican Government and Satmex are Currently in Negotiation with Canada for A Coordination Agreement for Fixed Satellite Services

Jan 16, 2003, 00:00 ET from Satmex

    MEXICO CITY, Jan. 16 /PRNewswire/ -- The Mexican Secretary of
 Communications and Transportation (Secretaria de Comunicaciones y Transportes
 (SCT)), The Mexican Federal Telecommunications Commission (Comision Federal de
 Telecomunicaciones (Cofetel)) and Satelites Mexicanos, S.A. de C.V. (Satmex)
 announced today that they have initiated a new round of negotiations with
 Industry Canada and the Canadian satellite operator, Telesat.  The
 negotiations are directed toward a new coordination agreement for fixed
 satellite services between the two countries.
     The sources indicated that the meetings being held on the 16th and 17th of
 January in Mexico are a continuation of the negotiation process that has taken
 place between the Mexican government, Satmex and the two Canadian institutions
 for more than a year. The objective of the discussions is to arrive at an
 agreement that replaces the one signed in May of 2000.  These negotiations
 have accelerated as a result of the premature and unexpected failure, in
 August of 2000, of Satmex's Solidaridad I satellite, which will soon be
 replaced by the new Satmex 6 satellite.
     Renegotiation of satellite coordination agreements is a common practice in
 the industry when a satellite reaches its end of life and is replaced by a
 more modern one.  It is also a common industry practice that the respective
 governments are involved in these negotiations, as well as the operators,
 because the governments ultimately ratify the agreements.
     In June, 2002, the administrations of Mexico and Canada established that
 the process to arrive at a new coordination agreement would be carried out by
 the Mexican and Canadian satellite operators, under the direction and with the
 participation of their respective administrations.
     Satmex 6 is in the final phases of construction and is currently
 undergoing testing to guarantee its operational capabilities.  The launch is
 expected to take place in the third quarter of this year.  This date, however,
 is subject to change depending upon the satisfactory completion of final
 testing and construction details.
     About Satmex
     Satmex, the leading Mexican satellite operator in the Americas, owns and
 operates a satellite system through which it offers broadcast, telephone and
 telecommunications services to 39 countries in the region.  The Satmex fleet
 also helps develop rural areas by offering distance learning and rural
 telephony services.  And, through its business partners in the NAFTA region
 and Latin America, Satmex provides high-speed connectivity to ISPs and Digital
 Broadcast Services (DBS), thus contributing to the integration of Latin
 America with the rest of the Continent.  Satmex is ISO 9001 certified.
 Satmex is a member of the Loral Global Alliance and offers its customers the
 advantages of a worldwide network of satellite capacity, providing global
 satellite solutions to the needs and requirements of the Americas.  For more
 information, please visit the Satmex web site at