MUMBAI: Intelsat, today, said that Intelsat Amecas-7 satellite experienced a sudden and unexpected electrical distribution anomaly that caused the permanent loss of the spacecraft on 28 November 2004 at approximately 2:30 am EST.

Consistent with existing satellite anomaly contingency plans, Intelsat has made alternative capacity available to most of its IA-7 customers.

According to a company release, many clients have already had their services restored.

Additionally, Intelsat is working with Space Systems/Loral, the manufacturer of the satellite, to identify the cause of the problem. The satellite, which operated at 129° West, was launched in September 1999 and covered the continental U.S., Alaska, Hawaii, Canada, Central America, and parts of South America. The satellite was self-insured by Intelsat, says the release.

The upcoming launch of the IA -8 satellite, currently scheduled to occur on December 17, 2004, will provide 36 Ku-band, and 24 C-band, equivalent transponders to the Intelsat North American fleet and help mitigate the impact of the permanent loss of IA-7.

Under the terms of the Transaction Agreement and Plan of Amalgamation for the sale of Intelsat, dated as of August 16, 2004, among Intelsat, Ltd., Intelsat (Bermuda), Ltd., Zeus Holdings Limited, Zeus Merger One Limited and Zeus Merger Two Limited, the total loss of the IA-7 satellite would give the purchasers the right not to consummate the acquisition of Intelsat. The purchaser, Zeus Holdings Limited, has advised Intelsat it is evaluating the impact of the IA-7 failure, adds the release.