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To: djane who wrote (5558)3/23/1999 12:40:00 AM
From: djane  Respond to of 10852
 
Satellite launch lifts AsiaSat despite revenue setback

technologypost.com

Monday, March 22, 1999

TELECOMS

PETER CHAN

Asia Satellite Telecommunications (AsiaSat) yesterday
admitted Star TV would contribute less revenue to the
company following its migration from AsiaSat 1 to the
newly launched AsiaSat 3S.

But AsiaSat believes the new satellite's coverage and
capacity will enable the company to reach more
customers and reinforce its leading position in the
industry.

AsiaSat 3S, the company's fourth satellite, was launched
by a Russian Proton rocket from the Baikonur
Cosmodrome in Kazakhstan.

The all-in launch cost was about US$195 million.
AsiaSat 3s, a Hughes HS601HP model, carries 28
C-band and 16 Ku-band linearised transponders and
will have a 15-year operational life.

With a single C-band footprint, the new satellite covers
50 countries in Asia, the Middle East, Australasia and
the Commonwealth of Independent States.

The Ku-band coverage consists of two fixed beams
covering South Asia and East Asia, as well as an
in-orbit steerable beam.

The new satellite will replace AsiaSat 1.

AsiaSat chief executive Peter Jackson said Star TV,
which rents 13 transponders on AsiaSat 1, would rent
only seven transponders on the new satellite because the
new transponders were twice as powerful as the old
ones in terms of coverage.

The switch by Star TV from analog to digital
transmission also called for a smaller demand in
transponder capacity.

Mr Jackson would not say how the decline in revenue
from Star TV - one of the company's largest revenue
contributors - would affect the company's overall
revenue levels but emphasised the new satellite would
give AsiaSat more competitive edge to reach more
customers.

The immediate effect of the launch will be that the
depreciation charges of AsiaSat 3S will start being
taken against the company's bottom line from this year.

Most of the customers in AsiaSat 1 - Star TV, Pakistan
TV, China Central Television and private VSAT (very
small aperture terminals) networks will migrate to
AsiaSat 3S, making the new satellite's full capacity 30
per cent occupied at the outset.

AsiaSat 1 - which was fully depreciated in the
company's books - will not be sold immediately.

However, it will be moved to a different orbital position
to continue to provide more point-to-point transmission
services.

Copyright (c)1999. South China Morning Post Publishers Ltd. All Rights Reserved.