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Contents Intoroduction Preliminaries Chapter 1 Chapter 2
Chapter 3 Chapter 4 Appendix Index

Article V Financial Principles


EUTELSAT shall own or lease the EUTELSAT Space Segment and shall own all other property acquired by EUTELSAT. The Signatories shall be responsible for financing EUTELSAT.


EUTELSAT shall operate on a sound economic and financial basis having regard to accepted commercial principles.


Each Signatory shall have a financial interest in EUTELSAT in proportion to its investment share and this shall correspond to its percentage of all utilization of the EUTELSAT Space Segment by all Signatories as determined under the Operating Agreement. However, no Signatory, even if its utilization of the EUTELSAT Space Segment is nil, shall have an investment share less than the minimum investment share specified in the Operating Agreement.


Each Signatory shall contribute to the capital requirements of EUTELSAT and shall receive capital repayment and compensation for use of capital in accordance with the Operating Agreement.


All users of the EUTELSAT Space Segment shall pay utilization charges determined in accordance with the provisions of the Convention and the Operating Agreement.


The rates of utilization charge for each type of utilization shall be the same for all public or private telecommunications entities in territories under the jurisdiction of Parties, which apply for space segment capacity for that type of utilization.


For public or private telecommunications entities authorized to utilize the EUTELSAT Space Segment under Article 16 of the Operating Agreement for territories which are not under the jurisdiction of a Party, the Board of Signatories may determine rates of utilization charge different from those referred to in subparagraph i) above, but the same rate shall be applied to these entities for the same type of utilization.


The satellites and associated equipment referred to in paragraph (f) of Article III of the Convention may, by the unanimous decision of the Board of Signatories, be financed by EUTELSAT. Otherwise they shall be financed by those requesting them on terms and conditions set by the Board of Signatories with a view to covering at least all relevant costs borne by EUTELSAT which costs shall not be considered as part of the capital requirements of EUTELSAT as defined in paragraph (b) of Article 4 of the Operating Agreement. Such satellites and associated equipment do not form part of the EUTELSAT Space Segment within the meaning of paragraph (h) of Article I of the Convention.

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