Thaicom said the agreement makes Synertone the sole provider of Ipstar service capacity available for mainland China. The Chinese market accounts for about 24 percent of total capacity of its Ipstar satellite, which is the company’s biggest spacecraft.

   Thaicom added that it may buy an equity stake in Synertone and that a final agreement between Thaicom and Synertone must be signed by March 31. The partnership would enable Synertone to explore a new source of revenue and expand its customer base for specialized communication products.

   DBS Vickers Securities Analyst Chirasit Vuttigrai said Thaicom has depended on higher revenue from its Ipstar satellite offering high-speed Internet services, to return to profit after four years of annual losses.

   “The announcement is very positive for Thaicom because sales of Ipstar services in China have been very disappointing,” Chirasit Vuttigrai, an analyst at DBS Vickers Securities (Thailand) Co. in Bangkok, said by telephone. “This raises optimism that the Ipstar business in China will significantly improve with the new partner.”