AVN.L Regulatory News (AVN)

19 Nov 2008 07:00



Date: 19 November 2008

On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")

Embargoed until: 0700hrs 

Avanti Communications Group plc

Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, announces that it has been awarded a £120k contract by The Northern Ireland Broadband Fund to install and demonstrate satellite backhaul systems to support mobile phone base stations in under-served rural areas.

In areas below a certain population density the costs to mobile operators in deploying conventional 2G/3G infrastructure with terrestrial backhaul can be prohibitive. Mobile base stations and the supporting network of backhaul were originally scaled to cope with voice traffic and the very high data traffic now created by the use of mobile internet devices creates a big problem for operators. Avanti can solve that problem more cost effectively and flexibly via satellite than any other technology.

The project will deploy the core of a network in Northern Ireland, however the results are capable of being exploited across the whole of Europe, and enable Avanti to begin work immediately with at least one cellular network operator.

David Williams, Avanti Chief Executive said: "We have been surprised by the strength of opportunity for our services in the mobile sector, as I commented in our Annual Results. The contract announced today is significant because it takes us firmly into a new market. It enables us to begin a roll-out and engage with mobile operators around Europe with a live service and should rapidly accelerate our growth in this exciting new market. It further serves to demonstrate the important role of government in advancing modern communications infrastructure and Avanti's skill in working with such organisations."

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About Avanti Communications

Avanti Communications Group plc is the only licensed Fixed Satellite Services operator headquartered in the UK (and one of only eight such groups operating in Europe);

No further funding is required for the Hylas project following successful completion of a long term debt facility in July 2007.

The European Commission has set aside funding for rural broadband projects in 79 regions across Europe with a total value of €1.8 billion over the next five years.

About The Northern Ireland Broadband Fund

The Northern Ireland Broadband Fund is managed by the Northern Ireland Government Department of Enterprise, Trade and Investment ("DETI"). DETI is responsible for economic policy development, energy, tourism, mineral development, health and safety at work, Companies Registry, consumer affairs, and labour market and economic statistics services. It also has a role in ensuring the provision of the infrastructure for a modern economy. The Northern Ireland Broadband Fund is co-financed under the European Regional Development Fund Sustainable Competitiveness Programme 2007-2013 and the offer of grant assistance is made under this programme.

http://www.detini.gov.uk