ISRO having enjoyed great success with indigenous satellites was making its first foray into the big business of satellite exports with the W2M project that fetched the agency US $33 million in revenue in a contract jointly executed with EADS.

While one major power system glitch has been reported in ISRO built satellite systems in the past -- in the Insat-2D in 1997 -- senior officials in the agency said the problems that are threatening to bring down the W2M "are totally different". "It comes after a series of over 10 successful satellite launches," the official said.

"Investigations are still on to pin point the problem. We have not been able to do that yet," the official said.

"A serious anomaly has occurred. Ground simulations are underway through the ISRO satellite centre and the Master Control Facility to put the satellite back on track," Director, Publicity & PR at ISRO S Satish said.

ISRO officials refused to comment as yet on the effect of a W2M failure on ISRO's efforts to be a major player in the space business.

Eutelsat reported the failure of the W2M satellite launched by the European Space Agency on December 20, 2008 through a communiqué on January 28 this year.

"Currently under the control of ISRO, the satellite is undergoing a full technical investigation by ISRO and EADS," the communiqué said while also stating that the satellite was not to the specification given to ISRO-EADS.

The satellite has 32 high-power Ku-band transponders for telecommunications and broadcasting services over Europe, West Asia and North Africa.

The "anomaly occurred during the satellite's transfer from the location used for in-orbit tests to its operating position at 16 degrees East where (it) was to replace W2 (an existing satellite)," Eutelsat said while indicating that operations were still intact.

The Chairman and CEO of Eutelsat, Giuliano Berretta has been quoted as saying the W2M situation "is a serious disappointment for Eutelsat." Listed among the top three satellite operators in the world Eutelsat will rely on an older satellite W2 and wait for another launch next year to carry out operations, the company said.

The 3,463 ton W2M satellite is one of the biggest built by ISRO, through a collaboration with EADS. It was expected to have a 15 year life span. The satellite's solar panels generate a maximum of about 7000 watts of power.

The ISRO-EADS partnership is in the process of executing a second satellite export for UK-based Avanti Screen Media.

EADS and ISRO won the bid for W2M two years ago. EADS managed the overall programme and supplied the communications payload while ISRO built the satellite and tested it.

ISRO officials have told news agencies the chances of revival of W2M are slim.