The agreements between Alcatel and SS/L were terminable on one year's notice and, on February 22, 2001, Loral gave notice to Alcatel that they would expire on February 22, 2002. While Alcatel maintained that the notice was not effective, the panel ruled in Loral's favor on this matter. The agreements are therefore terminated.

The agreements with Alcatel date back to 1991 and have outlived their usefulness due to the evolution of the space industry and the emergence of Alcatel as a direct competitor of Loral's.

In the arbitration, Alcatel's assertion that there were various breaches of the agreements was upheld. Alcatel claimed that certain provisions of the agreements relating to the exchange of information, along with certain procedural or administrative provisions, were violated by Loral. Loral believes that Alcatel's claims for damages are completely without merit. The panel will decide whether those breaches gave rise to damages at a later date.