SES Americon maximizes satellite revenues by optimally configuring transponders

SES Americom Inc. will launch AMC-12, the first of its new generation of communication satellites, in early 2004. This satellite has 24 highly sophisticated transponders, each of which can serve up to three markets simultaneously. By changing the configuration of the transponders, we can alter the markets they serve, thereby adjusting the capacity available by market. We developed a pricing- and contract-management system to maximize the revenues that AMC-12 generates. The system tracks signed contracts and projected demands over the life of the satellite, and recommends optimal configurations for the satellite's 24 transponders each month to maximize revenues. We modeled the transponder-configuration problem as a mixed-integer program and developed efficient heuristics for solving the problem. We implemented our algorithms in a Microsoft Excel-based system with a Visual Basic user interface. SES Americom is using the system to manage over $2 billion in revenues. We plan to adapt the system for use in other satellites with similar technology to be launched in the future.