26 Jun 2008 12:57
Date: 26 June 2008
On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")
For immediate release
Avanti Communications Group plc
Contract Win
Avanti Communications Group plc (AIM: AVN) has been awarded a £3.3m contract from the Scottish Government to bring broadband services to premises all over Scotland which have been identified as out of the reach of terrestrial alternatives.
Even after all exchanges were enabled for ADSL (Asymmetric Digital Subscriber Line), many thousands of homes and businesses were left without broadband access, which has a serious impact on the social and business life of many communities. Avanti has been chosen to deliver broadband to all premises that ADSL simply cannot reach.
The contract will cover capital and project management costs to establish networks covering over 3,500 homes and businesses. Avanti will sub-contract installation and management services to its wholesale customer and partner RDS.
David Williams, Chief Executive of Avanti, said;
"I am very proud again to be solving a digital divide problem which has significant social and economic ramifications for European families and businesses. There is also no doubt that this contract win with the Scottish Government further entrenches our European market lead in rural broadband. Together with our unique position as a framework satellite supplier to the UK Office of Government Commerce and our history of broadband work with ESA and the EU, this places Avanti in pole position to support the many European projects in this area. The European Union has identified and is funding similar projects in 79 regions across Europe with a total value of €1.8 billion over the next five years. This contract is therefore an excellent example of our ideal business in the target segment of Broadband."
Enquiries to:
| Avanti Communications Group plc | http://www.avanti-communications.com/ |
| David Williams | 020 7749 1600 |
| Redleaf Communications Ltd | avanti@redleafpr.com |
| Emma Kane/ Samantha Robbins/ Rebecca Sanders-Hewett/ Anna Dunkin | 020 7822 0200 ad@redleafpr.com |
| Cenkos Securities | |
| Ivonne Cantu / Julian Morse | 020 7678 8000 |
Notes to Editors:
About Avanti Communications
Avanti Communications Group's shares were admitted to AIM on 16 April 2007;
Avanti Communications Group is the only licensed Fixed Satellite Services operator headquartered in the UK (and one of only eight such groups operating in Europe);
Avanti is licensed to provide satellite services using spectrum which provides coverage of Europe, India, The Middle East, Central Asia, Africa and the Americas.
Avanti's first satellite, called HYLAS is under construction and due for launch in 2009; the company plans further satellite projects;
Avanti, which has over 10 years' experience in the satellite industry, currently provides satellite data communications services to customers in Europe using leased satellite capacity which it will transfer to HYLAS on launch;
Avanti has five core target customer segments for HYLAS capacity: broadband, telecoms network backhaul, corporate data networks, B2B video distribution and military/security;
No further funding is required for the HYLAS project following successful completion of a long term debt facility in July 2007.
About the Broadband Reach Project
§ In August 2001, Scottish broadband coverage as a result of the private sector's commercial investment was just 43% - compared to 63% in the UK. The Scottish Executive's Broadband Strategy was launched to achieve pervasive and affordable broadband in Scotland.
§ In June 2004, a target of affordable broadband to every community was set - reflecting the need to deliver to rural and remote areas where broadband was still unavailable.
§ In this project, a contract was awarded to upgrade 378 Scottish non-commercial telephone exchange areas to provide broadband.
§ The Scottish Executive commissioned the Broadband Reach Project following the Broadband Reach report by Masons consultants in 2006. This looked at the various technical factors which were still preventing individuals from accessing broadband from their telephone exchange. It examined the extent of the issue as well as the viability of potential technical solutions.
§ In December 2006, it was announced that further funds were to be made available to extend the roll-out of broadband services making access in Scotland as widespread as possible
About RDS
Remote Data Services (RDS) is based in Blair Atholl & Aberdeen Scotland providing a range of Specialist Satellite Solutions and IT Communication Services to industry and commerce across the globe.
Specialising in the provision of Satellite Communication solutions for those operating in remote or hostile regions, its core services also include Data Network Cabling solutions, SMATV Television Networks, and Electronic Identification Asset Management Systems.