Broadband satellite operator Avanti Communications Group Plc (LON:AVN) has signed a ten year contract for the sale of 100Mb of services on its HYLAS 1 satellite to a new customer who will deliver triple play (broadband, TV and voice over IP) to consumers in the UK and Ireland. Avanti is set to launch HYLAS 1 into orbit during the third quarter of 2010, bringing to an end several years of delays and triggering the start of revenues from its signed-up customers.

Avanti said it was unable to reveal the new customer’s identity for commercial competitive reasons, however it confirmed that it was an established and successful European satellite services provider with significant existing presence in the markets concerned. In addition to high speed broadband, the new agreement means that consumers will be able to receive a range of scheduled, broadcast TV channels over HYLAS 1, in the style of current free to air terrestrial services. With volumes increasing up to 100Mb over the initial five years, the contract will generate a minimum of €12.7m in revenues for Avanti.

David Williams, Avanti’s chief executive, said: “This contract brings us important new volume in satellite broadband distribution, but its main significance is in the triple play offering which we believe will further drive uptake of our broadband services. The TV business is highly competitive, but the niche we will operate in with our partner is not. We will be focusing on providing a free to air broadcast television service over Ka band satellite broadband which is aimed at consumers in rural areas who will lose services as a result of the switch off of analogue terrestrial television signals in the next two years. Thus, consumers will receive the traditional style of broadcast TV channels over the same dish and modem that they use to access broadband. In time, our offering may expand to include subscription channels.”

The launch later this year of HYLAS 1 will bring an end to several years of waiting by Avanti and its shareholders, who were originally expecting the launch to take place in December 2008. The company was originally formed back in 2002 and the satellite business was subsequently demerged from AIM listed Avanti Screenmedia in April 2007. Avanti's second satellite called HYLAS 2 is fully funded and will launch in the second quarter of 2012. It…

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