Xhead = Avanti unveils £75m broadband satellite
The Telegraph reports.
Avanti expects its first HYLAS satellite, HYLAS 1 to generate £50 million in revenue when it reaches capacity in 2014.
The company says interest remains high in its services, especially from Africa and the Middle East where traditional provision of broadband is not as developed as it is in Europe.
HYLAS 3, which is expected to go into orbit in 2015, will increase Avanti's exposure to emerging markets to 80%, from 70% after the launch of HYLAS 2, Total Telecom says.
"We don't currently have coverage in the Gulf of Guinea, where there's huge oil wealth," explains Avanti CEO David Williams. He adds that the company sees attractive opportunities with large oil companies in Nigeria. He also pointed to democratic liberalisation of North Africa, which could lead to economic growth.
According to The Financial Times, some analysts have been sceptical about how much demand there would be for broadband via the satellite offering, which is seen as more expensive and slower than fixed-line broadband.
However, Avanti brought forward its forecast for orders, saying it expected to fill capacity on the second satellite within four years, rather than five, as originally predicted.
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