Ofcom represents the UK and British Overseas Territories in the International Telecommunications Union (ITU) and decides whether to submit applications for satellite network filings to the ITU for registration.

The Isle of Man was competing with Bermuda over a particular slot serving the North American market which could be worth an estimated $850 million a year in revenue.

The Island's initial application for the slot, in 2002, was followed by one from Bermuda for a very similar frequency on the radio spectrum that would have caused interference.

The Island's Communications Commission was granted £500,000 of legal expenses by Tynwald to allow it to argue against conflicting filings of this nature.

A subsequent representation to Ofcom resulted in a consultative document recommending that, in the result of conflicting filings, the party making the first application would have priority, meaning that legal action was not required.

Ian Jarritt, finance director of Mansat, said: 'Their filing was subsequent to ours, we would prefer the conflicting filing did not go through, but Ofcom have said they wish to have a light regulatory touch and that will be an issue between operators. As long as we have the priority then their satellite is not really a practical proposition. If for any reason the Isle of Man satellites do not progress they would be first reserve.'

Mansat is an Island-based company dealing in satellites.
Anthony Hewitt, director of the Communications Commission, said: 'The support for the industry across Tynwald has confirmed the Island's position at the centre of the space industry. The presentation we were able to put together was supported by the governments of Jersey and Gibraltar.

'Ofcom has come up with a decision which does allow conflicting filings from Bermuda, but it goes a long way in the detail to solidifying the status of our position. Mansat has got clients of international standing, this is the strength of the Isle of Man, we are growing a space industry that is real, not just speculative paper filings. Bermuda had seen how much success the Isle of Man and Gibraltar were having and was looking to jump on the bandwagon.'

He added: 'I think a small proportion of the money (given by Tynwald] was used for expert advice, but the majority of it will not be needed and will be reverted back to government funds.'

The Ofcom consultation document, released last month, states: 'It is a general principle of the radio regulations that a network with an earlier filing date cannot be obliged to accept levels of interference higher than those specified in the radio regulations from a network with a later date.'

The document is clear about the need for jurisdictions to be capable of actually launching a satellite. The developing space industry in the Island puts it in a strong position.

It states: 'Ofcom is required to decide whether to submit applications for satellite network filings to the ITU for registration. Relevant to this decision is, among other things, whether the applicant can demonstrate the technical, financial and legal credentials to construct, launch and operate the proposed system in conformity with timescales contained in their business plan.

'ITU Resolution 49 requires administrations to impose certain due diligence requirements, these procedures are intended to minimise the number of speculative filings (known as paper satellites] that became a feature of the 1980s and 1990s. Paper satellites not only impose significant burdens on the ITU, but also block orbital slots resulting in underutilisation of valuable orbital resource. It is incumbent on the administration to satisfy itself that there is a realistic likelihood that the satellite will in fact be launched and will not block a valuable orbital location and frequency assignment.'