Boeing [BA] earlier this month announced the first order for its 702B satellites as Intelsat Ltd., selected the company to build four telecommunication satellites to refresh and add new capacity to Intelsat’s global satellite fleet.

Terms of the deal were not disclosed.

Under the contract, the four Boeing-built geostationary satellites, Intelsat 21, Intelsat 22, and two spacecraft to be determined later, will offer C- and Ku-band capacity able to distribute services from Asia and Africa to the Americas, focused on Mexico and Brazil, and Europe. Both satellites are expected to launch in 2012.

In late April, Intelsat announced the Australian Defence Force (ADF) agreed to buy a specialized UHF communications payload aboard an Intelsat satellite. Under that agreement, Intelsat is expected to operate the ADF payload and provide related services for 15 years following the launch.

Ken Lee, Intelsat senior vice president of space systems, in a teleconference said the company chose Boeing because “first and foremost for us, [is] quality and flight heritage, we need make sure that spacecraft being proposed will have highest reliability.”

All of the flight avionics have been proven, he said. “As far as I know, there’s been zero failure of any of those units going to be on 702B…[thus it is] not a risky venture from that perspective.”

Craig Cooning, vice president and general manager of Boeing Space and Intelligence Systems, said on the call the company’s relationship with Intelsat goes back to 1967.

The 702B satellite evolves from the Boeing 702 satellite, Cooning said. “It’s really the first major evolution since the introduction of the 702 in 1999.”

The 702B operates in the medium-level power ranges, with six to 12 kilowatts of onboard power. It has a modular, scalable design and new propulsion. Also, it uses Lithium Ion batteries, which are more efficient.

“We’re extremely proud of the increased value this design can offer our customers, Cooning said in a statement. Using our Lean manufacturing processes, this new addition to the Boeing 702 family is also easier to manufacture and assemble, resulting in a high-quality, affordable product.”

The UHF payload is not unique for Boeing, said James Simpson, Vice President of Business Development of Boeing Space and Intelligence Systems. The company has provided some 11 UHF satellites to the Navy and the Mobile User Objective System (MUOS) program.

For Intelsat to host the payload is “an opportunity to cost-effectively provide capability to international and the U.S. government,” he said.

Also, it’s part of Intelsat’s work to diversity their satellite fleet, Lee said.

Additionally, for Boeing, the satellite work preserves jobs, Cooning said. He sees his portion of the business as “fairly steady state.”