Zeenews Bureau

New Delhi, Dec 21: A European Ariane 5 rocket carrying two satellites, including an Indian-built European satellite W2M, was launched early Sunday from Kourou spaceport in French Guiana, South America.

The satellite was launched at around 4.00 am IST.

The 3,462-kg W2M was designed and built at the satellite centre of the Indian Space Research Organisation (ISRO) in Bangalore at USD 80 million (Rs 4 billion) for the European satellite operator (Eutelsat) under the ISRO-EADS-Astrium alliance formed in 2006.

Billed as a cost effective launcher for large satellites, the Ariane-5 is capable of launching payloads of up to 10 tonnes

Arianespace is 30 percent owned by European aerospace giant EADS.

Originally slated for launch on December 10, a general strike in French Guiana stemming from high gasoline prices led to a closure of the South American territory's roads and ports, delaying final preparations for the mission.

Twenty-seven minutes after lift-off the rocket released the Hot Bird 9 satellite to be used for digital and high definition television broadcasting throughout Europe, North Africa and the Middle East. Weighing 4.9 metric tonnes (10,800 lb) at launch, Hot Bird 9 was built by EADS-Astrium, the satellite building arm of EADS.

Five minutes later the rocket released W2M for television, data transmission and broadband services. W2M was built in India in a joint venture between EADS Astrium and the ISRO.

Arianespace president Jean-Yves Le Gall told reporters: "The end of 2008 was stagnant in terms of orders. In 2009, there will probably be fewer contracts and those contracts will be smaller."

Le Gall said his company was relatively well positioned for the economic slowdown with its product range increasing. The company has scheduled its first launch from French Guiana of Russian Soyuz rockets at the end of 2009 and in 2010 the introduction of Vega rockets for small satellite launches.

Globally, satellite operators have been trying to cut costs.

"What we did for EADS-Astrium represented USD 33 million on the satellite (W2M), that is the satellite's platform," G Madhavan Nair, ISRO president, said.

"Then, EADS-Astrium added the repeaters. We found this very profitable. It's the first time we have collaborated in this manner with European space industry," he said.

Reports in the Indian press put the total amount charged to Eutelsat at USD 80 million -- a fraction of the cost of a similar satellite built entirely in Europe or the United States.

Satellite operators cannot use China's low-cost Long March rockets as most of their satellites contain US-manufactured components subject to export restrictions.

Saturday's mission was the 28th consecutive successful launch of an Ariane-5 rocket.