MEASAT TO EXPAND SATELLITE BUSINESS IN AFRICA AS FUTURE GROWTH STRATEGY

By Mikhail Raj Abdullah


By Mikhail Raj Abdullah

CYBERJAYA (Malaysia), April 5 (Bernama) -- Measat Satellite Systems Sdn Bhd
is looking at options to replace its satellites in Africa to expand its
international business as a future growth strategy in a market thirsting for
satellite communications.

As for the timeline, Measat's Senior Vice-President for Space Systems
Development Dr Ali R. Ebadi said: "Any new satellite would take around 30
months to launch and bring into operational service."

Dr Ali, who saw four previous highly-successful Measat programmes, also said
the company was exploring options to work with partners for future satellite
programmes in view that new satellite programmes were costing between US$200
million and US$300 million each.

"Therefore, it makes sense to work together. Besides being cost effective,
joining hands with a strategic partner will enable each party to leverage their
customer bases to support the investment," he told Bernama here Monday.

"Such an approach would assist the company in growing the fleet more
rapidly, while spreading the risk," he said.

Measat initially expanded its satellite network into Africa in early 2008
with the commissioning of AFRICASAT-1 satellite, formerly known as MEASAT-1.
This was supplemented with the commissioning of AFRICASAT-2 earlier this
year.

"We are now looking at options to replace these satellites with new
satellites," Dr Ali said.

He said the focus into Africa was prompted by the success of the MEASAT-3
and MEASAT-3a satellites.

The company is currently looking at opportunities to grow the fleet further
to support demand in Malaysia, as well as opportunities to expand the company's
international business and one focus is on Africa, he said.

Touching on MEASAT-3a which was launched from the Baikonur space centre in
Kazakhstan on June 22 last year, he said it was a key event for Measat.

Besides an additional 12 C-Band and 12 Ku-Band transponders to the 48
transponders launched on Measat-3 in 2007, MEASAT-3a provided the company with a
key growth platform for the business.

Transponders or short for transponder-responder are electronic devices used
to wirelessly receive and transmit electrical signals on communications
satellites. More transponders mean increased satellite capacity.

Dr Ali said the launch of MEASAT-3 and MEASAT-3a was the key events
supporting the growth of the business which has increased its annual revenue
from RM137 million (US$37 million) in 2006 to RM241 million (US$68 million) in
2009.

Annual revenue is expected to continue to increase, reaching RM323 million
(US$100 million) within the next few years.

MEASAT expects that the MEASAT-3 and MEASAT-3a satellites to last for at
least 17 years.

As of today, two-thirds of MEASAT-3a's capacity has been leased with the
company on track to reach 85 per cent utilisation by end-2010.
With the MEASAT-3a satellite able to reach 110 countries, the MEASAT-3a
satellite is supporting customers both inside Malaysia and outside.

"When fully utilised, we would expect about 50 per cent of the capacity to
be leased to customers inside Malaysia and 50 per cent to international
customers located across countries such as India, Hong Kong and Singapore," said
Dr Ali.

He said the outlook for the region's satellite industry looks positive with
growth from Direct-to-Home PayTV operators, broadcast distribution and general
telecommunication services.

Astro, Malaysia's successful direct-to-home satellite television operator,
is one of Measat's anchor customers.

The launch of MEASAT-3a in 2009 was in part designed to support the growth
of Astro's services, including the recently launched Astro Beyond service, he
said.

"Demand for satellite capacity is also being driven by the growth of high
definition television (HDTV) around the region which, with superior picture
quality and Dolby surround sound, requires more bandwidth than the traditional
SD (Standard Definition) television," said Dr Ali.
-- BERNAMA