Who will operate the Amos 8 satellite that the government decided to finance on Sunday this week (2/9/18)?

It is not clear from the decision who will own the satellite, whether a space company will purchase the satellite instead of the satellites it ordered from L'Oreal or whether the aerospace industry will compete with it. Estimates in the industry lean towards the operation of the satellite and the sale of its receivers by the aviation industry. Halal Communications Company did not issue any announcement to the stock exchange regarding this decision until the time of editing the news even though many hours have passed since the publication of the announcement of the government's decision

The state approved the government's participation in financing the development and construction of a new communication satellite, Amos 8, to be developed and built in Israel. However, no amounts were given, nor is it clear from the decision who will own the satellite, whether the space company will purchase the satellite instead of the satellites it ordered from L'Oreal or whether the aerospace industry will compete with it. Estimates in the industry lean towards the operation of the satellite and the sale of its receivers by the aviation industry. However, Halal Communications did not issue any announcement to the stock exchange regarding this decision until the time of editing the news even though many hours have passed since the publication of the announcement of the government's decision.

As I recall, about two years ago following the explosion of the Amos 6 satellite and the launch pad at Cape Canaveral, an inter-ministerial committee headed by the Director General of the Ministry of Science Peretz Vezan, and recommended an outline that takes into account all the needs against the cost to the state: use of commercial communication satellites made in Israel and operating them through a company Israeli. Since the cost of communication satellites made in Israel is higher than their cost on the world market, the committee determined that there is a need to develop infrastructure and capabilities in order to bridge the cost gap.

In March of this year, the Space Communications Company announced to the Stock Exchange that it entered into an agreement with the American company Loral Space Systems, according to which the company ordered from Loral the production of the Amos 8 communications satellite and its systems and other services. The launch, by SpaceX, is expected to take place in 2020. "Loral is one of the top satellite manufacturers in the world and has produced over 270 satellites. According to the terms of the Amos 8 purchase agreement, the satellite is planned to be delivered to the company after completing its on-orbit tests within 27 months from the date of the advance payment, in preparation for its planned activity at the geostationary orbit point 4 West and to replace the Amos 7 satellite." Amos 8 will join the Amos 3 satellite at this sky point. The total consideration for the purchase of the satellite and its systems, including a ground control system for the operation of the satellite, launch support services, support for the operation of the satellite for the duration of its life, and support for operations to insure the launch of the satellite and during its operation in orbit amounts to approximately 112 million dollar."

The aviation industry did not accept the decree, which it claims means the elimination of the Israeli space industry. In a statement they published in April of this year, they write: "The outline under consideration, according to which IAI will operate not only as the manufacturer of the satellite but also as its operator, will make it possible to make a wise use of the government budgets designated for this issue, in a way that will allow the preservation of the knowledge and capabilities of the State of Israel in this strategic field, while producing Additional income for the aerospace industry, which is fully owned by the government."

Science and Technology Minister Ofir Akunis said after the approval of the decision: "The decision is of long-term strategic significance and meets vital existential needs for the State of Israel. The development and production of the satellite in Israel will allow maintaining absolute independence in the field of satellite communications. Its construction in Israel will preserve knowledge and expertise in the field acquired over decades in the local industry."

The meaning of the decision is that the knowledge gained in the field of communication satellites will be preserved in Israel, Israel will have control over the satellite, the quality of the transmission to the customers of the communication satellite will improve and expand, the innovative developments that will be developed in the satellite will also contribute to other technological projects and improve the competitiveness of the Israeli space industry in the world.

Minister Akunis added that the decision to finance the construction of the satellite is in line with the recommendations of the special committee he established exactly two years ago, following the explosion of the Amos 6 launch pad in the US. "The decision is a step in the implementation of the conclusions of the special committee, led by the Director General of the Ministry of Science Peretz and Zan, which were submitted to me shortly after the great disaster of the loss of Amos 6," said Akunis. "The technological knowledge that will be accumulated as a result of the work on this project will allow the entire Israeli space industry to compete better in the developing space market and gain an advantage, as well as strengthen the strength of the space infrastructure in Israel," says the director general of the firm Vezan.