22 May 2009 07:00
Date: 22 May 2009
On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")
Embargoed until: 0700hrs
Avanti Communications Group plc
Project award from European Space Agency
Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, has been awarded a project by the European Space Agency contributing €250,000 in 2009 to the cost of work on a Preliminary Design Review of a new satellite system called Hercules. This system has been proposed to the Department of Business, Enterprise and Regulatory Reform ("BERR") as part of Avanti's response to the Digital Britain consultation.
The Hercules system could provide a low cost method for delivery of broadband services at speeds between 2Mb and 50Mb to the 2.5 million rural homes in the UK which have been identified as unable to access terrestrial high speed broadband. The Digital Britain consultation has discussed ways to implement a Universal Service Commitment to solve this challenge. Avanti's first satellite, HYLAS, will solve a portion of this problem, but the market in the UK for high speed rural broadband is much bigger than most industry participants previously imagined.
The Technology Strategy Board, a partner of the British National Space Centre, has supported Avanti in this ESA application, which is designed to ensure that if BERR decides to proceed with major government initiatives to solve the rural broadband challenge, the Hercules concept has been de-risked and fully scoped, and is capable of a rapid project commencement.
David Williams, Chief Executive of Avanti, said:
"BNSC and Avanti began working together to address rural broadband problem long before the problem was widely acknowledged, which is how the HYLAS satellite project began. Whilst this satellite will soon be serving hundreds of thousands of households in the UK, it is clear that the demand now runs into millions, so more capacity will be needed if the government decides to move forward with its Digital Britain Universal Service Commitment, and this Hercules contract would enable us to respond rapidly."
Enquiries to:
| Avanti Communications Group plc | http://www.avanti-communications.com/ |
| David Williams/Nigel Fox | 020 7749 1600 |
| Redleaf Communications Ltd | avanti@redleafpr.com |
| Samantha Robbins/ Paul Dulieu | 020 7566 6700 |
| Cenkos Securities | |
| Ivonne Cantu / Julian Morse | 020 7678 8000 |
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 will be the first superfast 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 BNSC
The British National Space Centre (BNSC) is a partnership of 11 Government Departments and non-departmental public bodies (NDPBs) which exists to:
co-ordinate UK civil space activity;
support academic research;
nurture the UK space industry; and
work to increase understanding of space science and its practical benefits.
About TSB
The Technology Strategy Board is an executive non-departmental public body (NDPB), established by the Government in 2007 and sponsored by the Department for Innovation, Universities and Skills (DIUS).
The activities of the Technology Strategy Board are jointly supported and funded by DIUS and other Government Departments, the Devolved Administrations, Regional Development Agencies and Research Councils.
The Technology Strategy Board promotes innovation in many ways. As well as investing in programmes and projects, much of its work is in spreading knowledge, understanding policy, spotting opportunities and bringing people together to solve problems or make new advances.
About ESA
The European Space Agency's purpose is to provide for, and to promote, for exclusively peaceful purposes, cooperation among European States in space research and technology and their space applications, with a view to their being used for scientific purposes and for operational space applications systems:
by elaborating and implementing a long-term European space policy, by recommending space objectives to the Member States, and by concerting the policies of the Member States with respect to other national and international organisations and institutions;
by elaborating and implementing activities and programmes in the space field;
by coordinating the European space programme and national programmes, and by integrating the latter progressively and as completely as possible into the European space programme, in particular as regards the development of applications satellites;
by elaborating and implementing the industrial policy appropriate to its programme and by recommending a coherent industrial policy to the Member States.