Government has granted a 15-year exclusive contract to develop Bermuda’s satellite slot, according to Economic Development Minister Grant Gibbons.

Giving an update on the contract, Dr Gibbons said BermudaSat-1 commenced operations on April 13, 2013 — two days before the formal deadline set by the International Telecommunications Unit — with satellite EchoStar-6 moving into the orbital slot.

“Although BermudaSat-1 had commenced operations, it had to fulfil a mandatory 90-day waiting period before it could officially be ‘brought into use’,” Dr Gibbons said.

“I am happy to report that Ofcom, the UK regulator, confirmed to the ITU that BermudaSat-1 was deployed and maintained at 96.2°WL for the required period and had therefore had been bought into use, one week before the August 19, 2013 deadline set by the ITU.

“As the Minister with responsibility for Telecommunications, I am guided by the licensing regime for satellite networks as defined by the Satellite Network Notification and Coordination Regulations 2007.

“As per these regulations, I have now issued to SES Satellites (Bermuda) Limited (SESB), the designated operator for the BermudaSat-1 satellite network, the third and final certificate, namely, the Certificate of Coordination.”

He said that SESB had been granted the exclusive rights to commercially develop the satellite orbital space, explaining that while the slot could host as many as four satellites, having multiple groups operating satellites in the same slot could lead to interference.

“This agreement is for a 15-year period and is subject to renewal by mutual agreement provided that SESB is in full compliance with the terms and conditions of the aforementioned licence,” he explained.

“This Orbital Resource Agreement is the first of its kind in Bermuda and has enlisted the co-operative efforts of experienced resources from both the satellite industry and the legal profession. I note that these experienced resources were available to the Ministry through personnel already under contract with this Government.

“I am pleased to report that this agreement represents a significant milestone in the decade long quest to develop Bermuda’s primary space asset while also playing a role in diversifying our economy.”

Asked about the potential revenue the slot could bring Bermuda, Dr Gibbons said it was too early to determine. While the Island’s slot is reportedly in good position to service Latin America, a US moratorium currently prevents the satellites from servicing potentially lucrative markets in the country.