AsiaSat is focused on growing its business in Asia. The company believes, in particular, there will be more growth in DTH, which has been a feature of the Asian satellite market in recent times. William Wade, who has been the CEO of AsiaSat for less than two years now, talks about the market, the operator’s key recent decisions, such as going for SpaceX for launch services, as well as where the operator may go next.

VIA SATELLITE: In terms of industry verticals, DTH, broadcasting, oil and gas, maritime, cellular backhaul, etc. If you could pick one that offers the most potential for the company, what would it be?

Wade: I would say DTH. Video distribution is the main driver in Asia right now. Video broadcasting is about 70 percent of our business and that continues to be the main driver for our company’s growth. In the near term, the future expansion of DTH is something we continue to focus on. It does not necessarily have to be AsiaSat providing the DTH satellite platform directly, as we supply content to DTH operators. In some markets, we offer the DTH platform, and in other cases, we distribute content into those platforms.

VIA SATELLITE: You have made some interesting decisions recently, going with SpaceX. Why did you decide to go down this route?

Wade: There were a number of reasons why we decided to contract with SpaceX. The first reason was obviously the very cost-effective alternative to more established launch vehicles. We had committed to AsiaSat 6 and AsiaSat 8, which are generally smaller satellites than we have launched in the past. Launching those satellites on a much larger launch vehicle such as a Proton is overkill for satellites of this size. SpaceX meets the mass requirements for those satellites very well. Being conservative as we are, we wanted to make sure that we would at least have an opportunity to launch our satellites if SpaceX did not meet the development and performance milestones that they have in place. So, we put in place a back-up scenario just in case. So far, we have been very pleased with what we have seen with SpaceX. We are very positive with how things are progressing, but we like to have ourselves covered in the event things don’t go to plan.

VIA SATELLITE: Is there nervousness about going with SpaceX, hence the need for a back-up plan?

Wade: I wouldn’t say that we are nervous. Whenever you look at new developments you have to assume some unexpected delays and failures, and developing a new launch vehicle is a major task. We just wanted to be prudent, and make sure we had the ability to launch our satellites in the time frame we are planning. I think everyone would agree that SpaceX has accomplished some very impressive things so far. I don’t believe anyone doubts they will be successful. Our concern was not from a technical perspective, but more on timing, whether or not they would be able to make their launch manifest and provide the service in the time frame we need. That was more the reason for a back-up, rather than concerns about their technical capability.

VIA SATELLITE: A lot of industry talk has been on High Throughput Satellites (HTS). Could AsiaSat make a move here?

Wade: It is still early for HTS in Asia, but this will change over time. Today we anticipate the introduction of HTS and Ka-band satellites will serve as an extension of existing capability. As we see Ku-band and C-band filling up, the move to Ka-band is a natural step. We are not sure the broadband DTH or retail business model is a good fit for many parts of Asia. The demographics and population distribution in Asia is very different to what you find in Europe and the United States. Certainly, Ka-band and HTS are something that we anticipate more of going forward, but the model at this point in time, appears to be an extension of the existing FSS model, rather than a new application such as the DTH services we are seeing in the United States.

VIA SATELLITE: Hosted Payloads in Asia. Is there a play for AsiaSat here?

Wade: I think there are opportunities for hosted payloads in Asia and we are exploring them. In Asia, hosted payloads so far have mainly been for military applications. So, hosted payloads have gone on domestic satellites that are controlled by a domestic or government operator. We are unattached to any sovereign government so I would not anticipate that as something AsiaSat would participate in. There are however other hosted payload opportunities that we are considering and we should see more and more hosting opportunities. But, the military and defence related hosted payloads are being reserved for the domestic operators where the governments have tighter control.

VIA SATELLITE: You mentioned opportunities there. Which ones?

Wade: Anything from imaging, to weather, and navigational payloads, Ka- or L-band payloads with specific applications and projects associated with them. There have been discussions along those lines with various entities across Asia. Specific applications that could justify a dedicated payload hosted on one of our satellites are definitely a possibility.

VIA SATELLITE: Do you see major regulatory issues in Asia?

Wade: In India, it is still very frustrating. There is a huge demand for capacity that is being stifled because of regulation. There is a lot of activity around regulation and there are some indications that we might see some changes, but these things happen very slowly in India. If and when change may occur is not clear.

In other parts of Asia there are some changes taking place. We are seeing Myanmar has started to open up and there is growth potential for such a market that has been closed for many years. Other doors are opening for DTH platforms in countries like Cambodia, Laos, etc. Indonesia is also issuing new licenses for DTH. Overall in Asia there have been some positive regulatory developments, but the main markets are still fairly restrictive.

VIA SATELLITE: How do you see the communications landscape changing over the next 12 months?

Wade: AsiaSat presently has two satellites, AsiaSat 6 and AsiaSat 8 under construction at Space Systems/Loral. Upon completion, AsiaSat 8, an all Ku-band satellite will be co-located with AsiaSat 5 at 100.5 degrees east. AsiaSat 6, a C-band satellite that is going into the 120 degrees east orbital position, will be focused on providing services to the China and Australasia markets. In addition, we continue to look for opportunities to expand our business through acquisition or partnerships. In the past year, we were successful in securing a partnership in Thailand, which provided access to the 120 degrees east orbital location to develop new markets. We hope to be able to conclude more of these cooperation agreements, and offer new opportunities for expansion into different areas. We have a significant cash balance on our books and will look to use this to explore possibilities for consolidation.

VIA SATELLITE: From the outside, there would not appear to be many opportunities in Asia.

Wade: There are not that many attractive options but there are some discussions in the marketplace. Additionally there are space assets that are possibly for sale. Whether they fit AsiaSat’s profile is another question, but we are exploring all opportunities.