A substitute satellite for the failed SinoSat-2, which was to be China's first direct-to-home broadcasting satellite, will take at least three years to develop, according to a SinoSat spokesman.

"The company is drafting a replacement plan. The substitute satellite will not be a carbon copy of the previous one and we are expecting more technical upgrades," spokesman Fan Xinming said.

In the company's first public admission that SinoSat-2 suffered a technical failure on Nov. 8, spokesman Fan Xinming said that the satellite failed when the solar power panels stopped working.

"Thus, the spacecraft was unable to provide broadcasting and telecommunications services," he said.

Fan was quick to defend the SinoSat-2 in the wake of criticism over the costly flop.

"High risks are characteristic of the space industry. Many other satellite operators in China and overseas have suffered similar mishaps before," he said.

"The SinoSat-2 is now located in a quasi-GEO orbit and further investigations are being conducted into the manufacturing faults," he said.

"SinoSat-2", developed by the Chinese Research Institute of Space Technology (CRIST), is designed to serve broadcast TV, digital TV, live broadcast TV and digital broadband multimedia systems on the Chinese mainland, Hong Kong, Macao and Taiwan. It was supposed to operate for 15 years.

"We will not lose confidence in the domestic space manufacturing industry despite the setback." he said.

Fan also announced that "SinoSat-3", dedicated to radio and television services, would be launched in May next year.

"The research and preparation for the new satellite have been going smoothly," he said.

Industry analysts predict that once individuals are allowed to install satellite dishes, up to 100 million households will do so between 2006 and 2010.

Source: Xinhua