New York — Sirius Satellite Radio said it plans to launch a fourth satellite to enhance its service and extend service coverage.
Sirius announced today it has entered into an agreement with Space Systems/Loral, a subsidiary of Loral Space & Communications, for the design and construction of the new satellite to be completed by the fourth quarter of 2008.
“The satellite will cost approximately $260 million to design, build and launch, and it will be “one of the most advanced and powerful communications satellites ever built,” Sirius said.
The satellite will complement the three Sirius satellites currently in orbit (also from Space Systems/Loral), the company said.
Sirius CEO Mel Karmazin said, “Not only will this satellite support our other three satellites currently in orbit, but it will also improve reception for all Sirius subscribers whether they are in their car, office, home or jogging in the park."
The launch will not delay its plans to reach positive free cash flow after capital expenditures as early as the fourth quarter of 2006 and for the full year 2007. It said, “The payments associated with the purchase and launch of this satellite were anticipated in Sirius' guidance concerning free cash flow positive.”
Sirius plans to launch the satellite on a Proton rocket under a contract previously announced between Sirius and International Launch Services.