AVN.L Regulatory News (AVN)

17 Nov 2008 07:00



Date: 17 November 2008

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

Embargoed until: 0700hrs

Avanti Communications Group plc

Strategic Partnership with BT

Funding from SWERDA

Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, announced today that it has entered into a long-term strategic partnership for the management of HYLAS traffic with BT Group plc.

Avanti has contracted BT Business to provide satellite network services for its HYLAS satellite, due for launch in 2009. BT Business will use its existing Goonhilly satellite uplinking facility to transfer all traffic between the HYLAS satellite and the Internet. Goonhilly is historically one of the most important satellite teleports in the country with more than 40 years of unrivalled experience. Goonhilly is connected via BT Business' highly resilient fibre network to the major internet nodes in London, which gives Avanti access to excellent internet connectivity.  The two companies have also agreed to collaborate on certain opportunities to potentially deploy satellite broadband services.

Associated with the transaction, Avanti will also receive £1.5m of funding from the South West Regional Development Agency ("SWERDA") as a contribution to the planned investment required in operating from the facility in Cornwall and related to the local jobs created and safeguarded through this new venture.

David Williams, Avanti Chief Executive, said: "We are delighted to have begun a business relationship with BT. This is a long planned and crucial component of our customer network but also gives us opportunities to work on other opportunities that we will pursue together for mutual profit. The contribution of SWERDA is also very welcome support and we also look forward to extending our rural broadband business in Cornwall."

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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).

Avanti, which has more than 10 years' experience in the satellite industry, currently provides satellite broadband services to customers in Europe using leased satellite capacity which it will transfer to Hylas on launch.

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 SWERDA

The South West Regional Development Agency leads the development of a sustainable economy in South West England, investing to unlock the region's business potential.

SWERDA's core strategy is focused on:

Creating the conditions for productivity-led growth

Developing a low carbon economy

Creating successful places

http://www.southwestrda.org.uk