Thai satellite operator Thaicom has entered into a new partnership in China, in order to facilitate the sale of satellite broadband capacity in the country.
Thaicom already has a partnership in place with China Telecom Satellite (CTS) to sell broadband…
Thai satellite operator Thaicom has entered into a new partnership in China, in order to facilitate the sale of satellite broadband capacity in the country.
Thaicom already has a partnership in place with China Telecom Satellite (CTS) to sell broadband using its IPSTAR satellite. Under the new three-party framework agreement, Thaicom will sell all IPSTAR’s broadband capacity available for China, approximately 24% of its total capacity, to Hong Kong-based Synertone. Thaicom will also be entitled to a share of the revenues Synertone makes in selling this capacity.
As part of the deal, Thaicom will receive 5% of Synertone’s share capital and have an option to buy 5% more dependent on shareholder approval, according to a filing to the Hong Kong stock exchange made by Synertone.
Synertone will pay a deposit of US$600,000 to Thaicom, which will form part of the payment for the first year of service, the filing added.
“The directors believe that the possible acquisition enables the group [Synertone] to explore a new source of revenue and expand its customer base,” said Wong Chit On, Synertone’s chairman and executive director. “Upon completion of the possible acquisition, the group is able to increase the sales of its existing specialised communication products, as the group can lease the satellite bandwidth to customers who can connect the group’s communication products to the IPSTAR [satellite] without sourcing satellite bandwidth from other satellite service providers in the PRC.”
Thaicom’s CEO and chairman Suphajee Suthumpun added: “The sale of IPSTAR bandwidth in China will provide a wide range of benefits for all parties to the deal. Obviously for Thaicom it means that we have reached one of our most important goals. With capacity utilization in China, we have gone far beyond the break-even point of IPSTAR.
“For our partner in China, the deal will provide a valuable asset to expand communications infrastructure throughout the country, and the ability to rapidly provide services to un-served and underserved areas using IPSTAR services and solutions.”
The final terms and conditions of the agreement are expected to be completed by 31 March 2013.
Synertone develops and builds communication systems based around digital trunking and satellite VSAT solutions. Its customers are primarily based in China and are mainly focused on the oil and gas industries and emergency services.
