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PHONE
giant Philippine Long Distance Telephone Co. (PLDT) and
its subsidiary Mabuhay Satellite Corp. (MSC) signed
several agreements with Bermuda-based ProtoStar group,
to expand satellite services.
The key
aspects of the agreements include: an exchange of
certain MSC’s assets for an equity position in ProtoStar
Ltd.; expanded use of MSC’s Subic Space Center for the
operation and control of satellites; an option for PLDT
to make further investments in ProtoStar, and an
agreement for PLDT to lease C band transponder capacity
on ProtoStar’s recently launched ProtoStar I satellite.
A
statement from PLDT issued yesterday said the agreements
should enhance ProtoStar’s pan-Asian reach while
extending Mabuhay’s presence in the region. ProtoStar is
an Asian satellite services operator that was formed to
acquire, launch and operate high-power geostationary
satellites to lease capacity to Asian direct-to-home (DTH)
and broadband service providers.
“PLDT
and Mabuhay’s collaboration with ProtoStar will enable
PLDT to enjoy full diversity and protection for its
satellite needs as ProtoStar continues with its
satellite fleet expansion plans. The PLDT group uses
significant satellite capacity for its GSM (global
system for mobile communications) backhaul requirements
for its rural cell sites, and this diversification will
add to the robustness of the PLDT Group’s network,” said
PLDT president and MSC chairman Napoleon L. Nazareno.
The
first agreement is the lease of transponders onboard
MSC’s Agila 2 satellite to ProtoStar III, a wholly-owned
subsidiary of ProtoStar. The wholesale transponder lease
agreement or WTLA signed by the two companies is in line
with plans of ProStar establishing a branch office
within the Subic Bay Freeport Zone.
The WTLA
is still subject to certain conditions, including
obtaining the requisite regulatory approvals and certain
consents.
MSC will
assign its customer contracts and ground assets to
ProtoStar III’s Subic branch. As consideration for the
wholesale lease, MSC will receive $22.5-million worth of
ProtoStar’s Series C preferred shares and will also
obtain observer status in the ProtoStar board.
The PLDT
subsidiary will continue to operate and manage the
business on behalf of ProtoStar III under an operations
and management agreement until such time that the
conditions under the agreement are fully met.
PLDT
also signed an agreement for an option to subscribe to
$27.5 million worth of ProtoStar Series C preferred
shares. If and when PLDT decides to exercise the said
option, MSC and PLDT will obtain a combined equity stake
of less than 10 percent in ProtoStar, on a fully diluted
basis, and PLDT will be entitled to elect one director
to the Board.
To
secure the PLDT Group’s transponder capacity
requirements after MSC’s Agila 2 satellite reaches its
end-of-life sometime between 2010 to 2011, the phone
giant entered into an agreement for space segment
services with ProtoStar for PLDT’s use of a customized
payload consisting of four 36 MHz C-band transponders
and one additional 36 MHz nonpreemptible extended C-band
transponder all on board ProtoStar I (ProtoStar’s first
satellite) from 2011 to 2017.
PLDT
chairman Manuel V. Pan-gilinan stated that “PLDT’s
investment in ProtoStar affirms PLDT’s commitment to the
telecommunications industry and provides a platform for
future growth in the industry through one of Asia’s
upcoming regional satellite operators.”
The
combined resources of the PLDT Group, through MSC, and
ProtoStar will provide their existing and future clients
with redundancy and capacity for expansion, and will
enable both the PLDT Group and ProtoStar to develop a
broad range of products using satellite communications,
the statement read.
“We are
happy that ProtoStar has found value in Mabuhay’s
Satellite Telemetry, Tracking and Control capabilities
which have been built through our experience in ably
operating the Agila-2 satellite. This collaboration with
ProtoStar ushers Philippine satellite operations into a
new era of growth,” said Gabriel Z. Pimentel, MSC
president.
Philip
Father, president of ProtoStar Ltd. said the
collaboration with the PLDT Group will “expand our
satellite fleets and customer base as well as our ground
systems in a value-adding strategic manner that is
terrific for our respective customers and shareholders.”
ProtoStar I was successfully launched on July 7, 2008
from Kourou, French Guiana. ProtoStar I has onboard 24
Ku-band transponders and 36 C-band transponders.
The
Ku-band transponders will support the rapidly expanding
(DTH) television markets of India and IndoChina , while
the C-band transponders will serve the rapidly growing
cellular phone markets of Southeast Asia.
ProtoStar plans to launch several other satellites in
the coming years to serve Asia ’s businesses requiring
transponder capacity. A ProtoStar II satellite is now in
its final manufacturing stages with a scheduled launch
in the spring of 2009. |
