Berretta said the agency's change of status would take place, as scheduled, "in early 2001."

He said it was possible that the company may then seek a stock listing, and he personally favoured this.

"But this is a decision for the shareholders," he said.

Eutelsat gathers telecommunications firms from 47 European countries. When it was first set up in 1977, virtually every corporation was state-owned.

The onward march of privatisation within Europe means that most of the stakeholders are now out of state hands.

That in turn has wrought a change of ownership philosophy in Eutelsat, and its members decided in 1998 to privatise the entity.

Eutelsat currently has a three-tier structure, including an executive headed by Berretta.

Under the privatisation, a limited company based in France, Eutelsat SA, will be set up by its current stakeholders, to which all assets and activities will be transferred.

An "intergovernmental organization" will also be set up, Eutelsat says. It will ensure the company upholds "basic principles of pan-European coverage, universal service, non-discrimination and fair competition."

Eutelsat, which is also the third largest satellite operator in the world, operates a fleet of 15 satellites, broadcasting more than 550 digital and analogue TV channels to more than 75 million homes in Europe, Africa and Asia.

The satellites also carry corporate networks, mobile voice, data and positioning services.

Seven more satellites are due to be launched over the next two years.

Berretta added that Eutelsat's turnover in 1999 would be around 470 million euros (dollars), after 455 million a year earlier.

Profit would be "under 150 million euros," compared with 133 million in 1998, he said.

Meanwhile, Eutelsat is ordering a new satellite that will be used to satisfy crucial requirements for back-up and to enable expansion of digital services in existing and new markets.

Provisionally called NEWBIRD, the satellite will be equipped with 26 Ku-band transponders in the FSS band that are switchable into three coverages - a Widebeam over Europe, a beam that reaches North and South America and a steerable beam. Due to be delivered to Eutelsat by Alcatel Space in a record 16-months, the satellite will be available in orbit in mid-2001.

Subject to the successful upcoming launches of Eutelsat's W1, EUROBIRD and SESAT satellites, NEWBIRD will go into full commercial service at 8 degrees West, at which point it will be named ATLANTIC BIRD 2.

From 8 degrees West it will assume continuity of services currently routed by Telecom 2A's 11 Ku-band transponders as well as open opportunities for services to new regions via its additional 15 transponders and considerably enlarged coverage options. It will also complement capacity on the Telecom 2D satellite whose Ku-band payload will be made available to Eutelsat customers at 8 degrees West in the second quarter of this year following an extension of the agreement reached in 1999 with France Telecom.

Eutelsat's new satellite and Telecom 2D will together provide 37 Ku-band transponders from 8 degrees West, which will be developed into a new multi-satellite position for Eutelsat. This will enable the Organization to meet high bandwidth requirements for new digital services and to further develop its strategy of geographical expansion.