Under the terms of the contract, SES ASTRA will supply the EU with a tailor-made payload as well as the related necessary ground infrastructure. The payload will operate in L-band and be located on SES ASTRA's new SIRIUS 5 satellite.

SIRIUS 5, procured by SES Satellite Leasing Limited in the Isle of Man, is scheduled for launch in the second half of 2011 and is currently under construction by Space Systems/Loral. It will be positioned at SES SIRIUS' prime orbital position 5 degrees East. SES ASTRA is planning to start operating the EGNOS payload by year-end 2011.

EGNOS supplements the primary GPS - and in the future also the GLONASS and GALILEO - navigation systems by reporting and improving the reliability and accuracy of the signals. It will also provide European navigation services ahead of the deployment of GALILEO.

The EGNOS service is available over Europe and northern Africa and will be fully compatible with GALILEO.

Ferdinand Kayser, President and CEO of SES ASTRA, said: "We are very proud to have been chosen by the EC to contribute to this important satellite navigation service which will play an important role in the development and realisation of the GALILEO system. The decision shows that the commercial satellites of SES ASTRA can provide great value to governments and institutions that are looking for capacity for their satellite based projects such as EGNOS."

The decision by the European Commission follows a contract between AMERICOM Government Services, an affiliate of SES, and the U.S. Government to host an experimental sensor on board of a commercial spacecraft, a program known as the Commercially Hosted Infrared Payload (CHIRP) Flight Demonstration Program, which is scheduled for launch later next year.

"These recent agreements show that SES operates very successfully in the attractive and growing government and institutional market," said Romain Bausch, President and CEO of SES.

"Our strong position as a leading satellite operator and as a major driver of the satellite industry makes us a highly reliable and flexible partner for institutional customers and governments. Our significant long-term satellite fleet investment programs, and our long-standing world class expertise in commercial satellite operations, benefit institutional customers and offer various opportunities for hosted payloads in the years to come."

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On March 23, before the start of SATELLITE 2009, World Teleport Association (WTA) held its first Members Forum, which featured senior executives of member companies discussing the issue of channel conflict between teleport operators and satellite carriers.