APT Satellite hopes to become more of an international force across Asia. Yu Yong, APT Satellite’s vice president admitted that the company could even look to possibly even attack markets outside of Asia. The international strategy will be linked to the replacement of the Telstar 10 satellite, which APT Satellite recently acquired the leasehold of the interest back from Telesat. Yong told the CommunicAsia E-Daily, “We have also recently signed an agreement with Telesat to buy back the satellite Telstar 10, although we now call it APT-2R. It has 44 transponders and that will intensify our position across the Asia region. We have acquired their customers from this satellite. The fill rate on that satellite is high. The eventual replacement for APT-2R will be a traditional satellite. Because of our orbital slot at 76.5 degrees East, we will consider different coverage such as North Africa and Middle East for our replacement satellite. For us, it is a challenge as these are new markets.”
    Despite buying back the leasing agreements from Telesat, the satellite will need to be replaced soon, and APT Satellite is already starting the process of looking at the possible replacement. “Since we got back the APT-2R satellite, we have to consider a replacement satellite as the satellite’s end of lifetime is at the end of 2012. It is true we have started requests for proposals. We have initiated this. We don’t see any impact on our replacement program and operation from the current global financial crisis,” said Yu.
    The deal with Telesat was announced June 1. Telesat relinquished it leasehold interest in Telstar 10 to APT Satellite, the satellite’s owner, as well as transferred customer contracts for just under $70 million. Telesat through its predecessor company, Loral Skynet, had had a lease agreement with APT Satellite on Telstar 10 for almost a decade. The satellite has C-band and Ku-band capacity. The Ku-band has focused coverage of China and Korea, as well as Hong Kong, Macau and Taiwan. “Given APT’s deep involvement with Telstar 10, the complex regulatory environment associated with the satellite, and the upcoming requirement to replace Telstar 10, this transaction makes strong strategic sense for both parties and ensures that the users of Telstar 10 will continue to receive high quality satellite services for the life of the satellite and its replacement,” commented Dan Goldberg, CEO, Telesat
    APT Satellite has a strong position is China, as well as serving in other markets in Asia. However, it only looks to serve certain Asian markets. “We are not focusing on all markets. We are looking at particularly southeast markets like Indonesia, Singapore, etc. In overseas markets, we face some competition from regional operators around,” said Yu.
    Yu admits the company could form closer ties with China DB Sat, the main satellite operator in China, as it looks to deepen its position in this market. He said, “We have customers with long-term contracts in China. In terms of China, our coverage is good. We have a close co-operation with China DB Sat, not only due to the change in shareholder, but because of the market. We are both trying to gain growth in this market together. These two companies have good coverage. That co-operation could get closer still. We are still discussing with them for more co-operation. They have a strong foothold in China. I think in order to achieve synergy between the two companies, there is room for further co-operation.”
    In terms of the potential growth markets for APT Satellite in China and beyond, Yu highlighted the cellular backhaul market as potentially a pretty strong one for the company. He said, “Cellular backhaul is a very strong growth market in China. Even in a market like Indonesia, the demand for these services is also good. We are also looking at telecoms, corporate VSAT, Internet access, emergency rescue services also, etc.”