Intelsat orbiter loss causes broadband outage

Satellite network operator Intelsat has issued a statement saying that its Intelsat Americas-7 satellite experienced "a sudden and unexpected electrical distribution anomaly" over the weekend, causing the operational disruption and permanent loss of the orbiter. The problem temporarily disrupted communication services for some Intelsat IA-7 customers, including broadband service provider StarBand Communications.

StarBand reportedly was supporting its customers with dial-up service during the outage. Intelsat said it was not yet sure what caused the problem on board the IA-7 satellite during the early hours of Sunday morning, but added that it was working with its manufacturer, Space Systems/Loral, to investigate the cause.

The IA-7 satellite was launched in September 1999, and covered North America, Central America and parts of South America. Intelsat is planning to launch the new IA-8 satellite on Dec. 17, which the company said will help mitigate the loss of the IA-7.

The loss of the IA-7 comes at an inopportune time for Intelsat, as the Bermuda-based company is in the process of being acquired by Zues Holdings Ltd., and its affiliates. Zues and Intelsat agreed to the $3.1 billion merger in August, but Intelsat admitted in its statement that "the total loss of the IA-7 satellite would give the purchasers the right not to consummate the acquisition of Intelsat."

Zues Holdings is currently evaluating the situation, Intelsat said.