SatMex news:
ATSI Secures Long-Term Satellite Capacity Requirements
BUSINESS WIRE
SAN ANTONIO--(BUSINESS WIRE)--July 23, 1998--
--Expected to Double Capacity-- --Anticipated Savings of More Than $3.5
Million Over Three Years--
American TeleSource International Inc. ("ATSI") (OTCBB:AMTI) today
announced the signing of a new satellite agreement with Satelites Mexicanos,
S.A. de C.V. ("SATMEX").
The agreement is expected to double ATSI's capacity and allows for
potential savings in transmission costs of more than $3.5 million over the next
three years. In addition, SATMEX has agreed to provide the Company
capacity on its "SATMEX V" satellite, scheduled for launch in late 1998,
allowing ATSI to secure its on-going space segment requirements.
SATMEX, a former State-owned satellite communications company, was
sold to Telefonica Autrey and Loral Space Communications (NYSE:LOR)
at the end of 1997. SATMEX has three satellites currently in orbit: Morelos
II, Solidaridad I and Solidaridad II. In addition, SATMEX V is scheduled
for launch in early November 1998, operational in early January 1999.
Based in Mexico City, SATMEX provides satellite services for the
transmission of television, radio, voice and data signals for both public and
private broadcast and telecommunications networks. Its satellite system
currently provides coverage of Mexico, the southern and eastern United
States, Central America, the Caribbean Basin and South America.
SATMEX V expands Morelos II's footprint, extending coverage from
Canada to Argentina.
Randy Poole, ATSI's Chief Operating Officer, stated, "SATMEX
recognizes ATSI as one of the premier, niche players in the Latin American
telecommunications marketplace. Because of this agreement, ATSI will now
have the ability to manage its own space segment, resulting in our ability to
turn up revenue much quicker. With our satellite requirements secured, a
solid foundation in place, and a focused strategic plan underway, we are
taking ATSI to the next level for our customers, employees and
shareholders."
American TeleSource International Inc. is a four-year-old
telecommunications entity that is rapidly becoming a competitive force in
niche services within the demonopolizing, underserved markets throughout
Latin America, primarily Mexico. ATSI owns the San Antonio International
Teleport, located at its corporate headquarters in San Antonio, Texas,
providing networks for voice, data, fax, and Internet, as well as call services
for domestic and international long distance.
ATSI has overcome high barriers to entry, giving it an advantage over
certain competition. ATSI's bilingual, bicultural team has diligently focused
on the acquisition of unique licensing, execution of interconnection
agreements, deployment of network facilities and investment in distribution
channels.
Certain statements made herein which are not historical in nature could be
construed as forward-looking statements (as such term is defined in the
Private Securities Litigation Reform Act of 1995). The Company's ability to
secure long-term capacity requirements, manage its space segment, increase
revenue growth and realize significant savings over the three-year agreement
period, is subject to many risks and uncertainties.
Factors affecting the Company's success in such areas include not only its
own results of operations and financial condition, but also the reliability of
SATMEX's satellite network, competitive forces, customer attrition,
government regulation and general economic market conditions that affect
the Latin American telecommunications industry.
Specific factors that affect the Company's results of operations are discussed
in the Company's Securities and Exchange Commission filings and include,
for example, government supervision and regulation, service or equipment
interruptions or failures, and competition from other providers. There can be
no assurance that the announced SATMEX agreement will increase
shareholder value.
(Copyright 1998)
Jeff Vayda |
