AsiaSat 4 signs up Reach as 1st subscriber

HONG KONG: Asia Pacific's leading satellite operator, Asia Satellite Telecommunications Co Ltd., said it has signed up telecom carrier, Reach Ltd., as the first subscriber on its AsiaSat 4 to be launched in March.

Reach, a 50/50 joint venture between Telstra Corp and Pacific Century CyberWorks, will lease one C-band transponder on AsiaSat 4.

"This new deal signals the beginning of the revival in demand for transponder capacity in the region and an improvement in the Asian economy," AsiaSat's Chief Executive Peter Jackson said in the statement.

The sluggish global economy and severe downturn in the media and telecommunications sector are hurting satellite operators. The utilization rate of the firm's AsiaSat 2 and AsiaSat 3 fell to 63 percent in mid-2002 from 65 percent at the end of 2001.

Shares of Asia Satellite closed at HK$9.70, down HK$0.20, on Monday and were untraded early on Tuesday. The stock has risen about three percent in the past three months but fell about 33 percent in the past year.

AsiaSat 4, which will replace the retiring AsiaSat 1, is scheduled for launch in the second half of March after being postponed twice from May and September in 2002 due to technical issues, a spokeswoman of AsiaSat said.

Reach currently uses AsiaSat 2 to offer satellite service solutions to global carriers, broadcasters and corporate customers. It also provides tracking, telemetry and control services to AsiaSat from its Hong Kong teleport facility. AsiaSat4 will carry 28 C-band and 20 Ku-band transponders including four broadcast satellite service transponders to be used for Hong Kong's direct-to-home services.

© Reuters