AVN.L Regulatory News (AVN)

20 Apr 2009 07:00



Avanti Communications Group plc

Contract Win

Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, has been awarded a contract by Hutchison 3G Ireland Ltd (Hutchison 3G) to supply them under the Irish Government's National Broadband Scheme. This €43m scheme is designed to bring broadband services to communities all over Ireland which are out of the reach of terrestrial alternatives. The contract has an expected value to Avanti of €5.3m (£4.6m) over 3 years.

Avanti will be concentrating on serving the rural areas where ADSL and Mobile broadband will not reach. 

The contract will cover an anticipated 5,000 - 6,000 homes and businesses in its initial phase although the eventual number of potential customers may be higher. Avanti will begin services on leased capacity, transferring to its own HYLAS satellite after its launch.

David Williams, Chief Executive of Avanti said;

"I am delighted that our service has been chosen by Hutchison 3G, which is part of a highly respected global telecoms group. This contract win further consolidates our European market lead in rural broadband, and we are proud to play our part in helping to advance the Irish digital economy.  Gaining approval from a large and experience telecom carrier like Hutchison 3G is a significant milestone in the development of our business. We expect to generate increasing contract wins with large mainstream telecoms carriers now that the place for our product in the European market place is firmly established."

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Notes to Editors:

About Avanti Communications

Avanti sells satellite broadband services to telecoms companies which use them to supply homes and businesses.

Avanti's first satellite, called Hylas is under construction and due for launch in 2009; it will be the first broadband satellite launched in Europe.

The market for satellite broadband products in Europe is estimated by the EU at more than 24 million.

Avanti currently provides satellite broadband services to customers in Europe using leased satellite capacity which it will transfer to Hylas on launch.

The European Commission has set aside funding for rural broadband projects in 79 regions across Europe with a total value of €2.8 billion over the next five years.

About Hutchison 3G Ireland 

3 is Ireland's newest mobile phone network. It was awarded a 3G mobile phone licence in Ireland in 2002.

3 is a young business, challenging the existing market and its practices. It has created a new global network, with new rules that have changed the mobile proposition. Our most modern mobile (3G) network means that we can offer a range of exciting new mobile services.

3 Ireland is owned 100% by Hutchison Whampoa which is one of Hong Kong's biggest companies with a successful track record in global telecommunications. Backed by strong and experienced stakeholders, they are building a business that provides first class products and services. They are at the forefront of this technology and are blazing the trail as leaders in the mobile (3G) industry.

Hutchison Whampoa has numerous mobile telecommunications businesses around the world. The company also has four other core business areas: ports and related services; property and hotels; retail and manufacturing; and energy and infrastructure

About the National Broadband Scheme (NBS)

The NBS will deliver broadband to certain target areas in Ireland in which broadband services are not available. Under the contract, 3 will be required to provide services to all premises in the NBS area who seek a service. In order to facilitate competition in the area, 3 will also be required to provide wholesale access to any other authorised operator who wishes to serve premises in the NBS area.

Following the conclusion of a competitive tendering process, the contract to implement and operate the National Broadband Scheme (NBS) was entered into with "3" (a Hutchison Whampoa company trading as 3) on 23 December 2008