Spacecom Satellite Communications Ltd's (TASE:SCC) interim solution for communications coverage of Africa began operating today, with the arrival of the Amos 5i satellite at its orbital slot and the launch of commercial services. In contrast to the rest of the company's Amos 5 communications satellites, which the company designs and launches itself, the Amos 5i was purchased from Asia Satellite Telecommunications Company (HKSE: 1135), which operated the satellite as the AsiaSat2, in order to provide coverage of Africa until the Amos 5 is operational, which is scheduled for the summer of 2011.
The Amos 5i is a 15-year old communications satellite, and is due to end its operational life in two years. Asia Satellite Telecommunications has already launched the replacement satellite, so the sale benefited both companies: Spacecom can meet immediately demand for satellite telecommunications services in Africa, and Asia Satellite Telecommunications gets revenue from an old satellite.
Spacecom did not disclose how much it paid for the Amos 5i, but when the deal was signed in September 2009, the company estimated the payment at $45 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2010
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