[Satellite TODAY 06-08-10] Avanti Communications has signed a long-term Hylas 1 capacity contract with an unnamed triple-play consumer telecom service in the United Kingdom and Ireland, the operator announced June 7.
The 10-year contract provides the customer with up to 100 megabits of service on Hylas 1 to deliver a bouquet of scheduled, broadcast TV channels in the style of current free-to-air terrestrial services, in addition to high speed broadband. With volumes increasing over the initial five years of the contract, Avanti said the deal should generate a minimum of 12.7 million euros ($15.2 million) in revenues.
    Nick Bell, a satellite equity analyst at Jefferies International, said the deal’s pricing, combined with the amount of capacity leased, shows a continuing positive trend for Avanti. “Successful rollout of the triple-play service by the customer would result in further capacity demand. An implied pricing of about 1,400 British pounds ($2,022) is consistent with our forecasts and the 100 megabits takes the total sales to about 18 percent of capacity with a further 10 percent to an Eastern European customer dependent on acquiring bank guarantees.”    
    Bell’s assessment was in line with Avanti CEO David Williams’ projections in a statement issued discussing the capacity contract. “This contract brings us important new volume in satellite broadband distribution, but its main significance is in the triple-play offering, which we believe will further drive uptake of our broadband services. The TV business is highly competitive, but the niche we will operate in with our partner is not. We will be focusing on providing a free-to-air broadcast television service over Ka-band satellite broadband, which is aimed at consumers in rural areas who will lose services as a result of the switch off of analog terrestrial television signals in the next two years.” 

Related Stories-

Investors: Finding Safety in Satellite Again   Via Satellite   May 1, 2010
After helping to reshape the FSS landscape, investors took a step back from satellite during the economic downturn. Now old and new investors are being lured back by promising opportunities. An influx of private equity into the satellite…

Arianespace Ready for Astra 3B Launch; May Not Be Ready for Hylas 1   Satellite Today   May 17, 2010
[Satellite TODAY 05-17-10] Arianespace will launch SES Astra 3B broadcasting satellite and the German military’s ComsatBw 2 communications platform May 21 after problems with the Ariane 5 rocket’s helium pressurization system pushed the launch back…

Hughes Wins Avanti Ka-Band Satellite Services Deal   Satellite Today   April 28, 2010
[Satellite TODAY 04-28-10] Hughes Network Systems signed an $18 million, multi-year agreement to supply Avanti Communications Group with advanced Ka-band networking infrastructure for Avanti s Hylas 2 satellite, Hughes announced April 27.