Loral Skynet, a subsidiary of Loral Space & Communications, reported Friday said that its Telstar 4 satellite experienced a short circuit of its primary power bus today at 8:56 am EDT, causing the satellite to cease operations. Loral Skynet immediately made capacity available to most Telstar 4 customers, many of whom have already had their services restored on Loral’s Telstar 5 and Telstar 6 satellites.

Loral Skynet and Lockheed Martin, the manufacturer of the satellite, are working to determine the cause of the problem and to restore service on the satellite, if possible. The satellite is insured for $141 million.

Telstar 8, currently under construction at Space Systems/Loral, will replace Telstar 4, as planned, at 89 degrees West in mid-2004.

Telstar 4 coverage includes the continental U.S., Alaska, Hawaii, Puerto Rico, U.S. Virgin Islands, and southern Canada. Telstar 4 was launched in September 1995.