Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from David Sacks - Hawkeye Capital.
David Sacks - Hawkeye Capital
Michael, could you go over the capital spending profile for the fourth quarter of this year, what your expectations are for 2010, if you have any thoughts on 2011 that you know??
Michael Targoff
I think we’ve indicated repeatedly that, we see at the Loral level at SS/L, a normal spending pattern that would be somewhere between $25 million to $30 million in regular CapEx.
We have as I’ve said, embarked upon a expansion program at SS/L, that allows us to accommodate up to as many as nine satellites and while that’s substantially completed the expenditures to updated test equipment, continue to have a requirement for spending somewhere between $5 million and $10 million, as we look forward in the next 15 months, I guess you question would.
So we would see on the normal expenditures plus and approximately $10 million number for the extra test equipment. We’d also expect to complete over the next two years. The spending for the remainder of the $35 million for ViaSat-1 and $15 million of ground infrastructure equipment and that would be at the Loral level. That would be it, unless we have new or unusual items, or out of the ordinary course of requirements.
David Sacks - Hawkeye Capital
Can you speak it all to the Telesat spending requirements over the next year or two?
Michael Targoff
Well, I could, I’ve really refer you to Dan Goldberg’s remarks yesterday, but essentially they’re building T14, which I think they’ve disclosed is a total cost to them. I’m not sure whether they include the capitalized interest in or in it of somewhere between $215 million to $300 million Canadian and they will be building Nimiq 6, which again they’ve described as being in the same cost range.
So I think you know that those satellites take anywhere from 24 to 28 months typically, so you can plan it out.
David Sacks - Hawkeye Capital
What do you expected in turn of rate return beyond those projects?
Michael Targoff
I don’t think we probably disclosed that and I don’t think I want to tell you more about that other than, I think Dan has indicated that the Nimiq 6 is in the pattern of contractual relationships that have historically been between Bell and Telesat, which we at Loral viewed very favorably when we acquired the company. We would hope that would be same here and 11N it’s just a typical FSS satellite and your, we thought at Loral was a fine location and the early evidence I think speak for itself.
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