Hong Kong Satellite Technology Group (HKSTG)
On 17 January 2002 Hong Kong Satellite Technology Group (HKSTG) and Israel Aircraft Industries Ltd. (IAI) signed a contract for seven commercial communication satellites. The ceremony took place in the Great Hall in Beijing. The deal may reach as high as $1.0 billion.
HKSTG was formed in 2001 by a group of private Hong Kong investors. Partners in the venture include the China Aerospace Ltd. Science and Technology Group Corporation (CASC), Sino Satellite Communications Company Limited (Sinosat) and Israel Aircraft Industries (IAI).
The relevant parties agreed to complete production and launch of "Hong Kong No. 1" within 34 months of signing and have the second satellite in the series ready for services in another 18 months. Israel Aircraft Industries will provide the technology know-how for the satellite production. The two satellites will be launched at the Xichang Satellite Launch Center in China on the "LM series launch vehicle".
"Hong Kong No. 1"and "Hong Kong No. 2" form part of the initial stage of satellite-based network construction by Hong Kong Satellite Technology Group. The company also plans to build a Hong Kong-based ground satellite control center, bringing itself closer to the goal of establishing a satellite-based network covering China and other parts of Asia.
HKSTG will provide communication services, particularly direct-to-home television services for the rapidly growing Asian market. The demand for HKSTG's Communication services is expected to intensify due to the retirement of other communication satellites that are currently in service. In addition, the new satellites will be used to support the 2008 Olympic games, which will be held in Beijing.
The Hong Kong Satellite Technology Group Ltd. will be in management, production and distribution of AMOS-HP/DFH-2000 medium-capacity commercial satellite series. Each satellite in the HKSAT series includes 20 Ku band transponders designed to provide a 12-year service life. With 5500 Watts of power, the HKSAT series was designed as the ideal satellite constellation for providing direct TV broadcasting, digital communications, multi-media, Internet and other communication services. The contract allows HKSTG to purchase two HKSAT satellites from IAI's MBT Division, who is the prime contractor for the manufacture of the satellites. HKSAT satellites are based on IAI's successful AMOS series of communication satellites previously manufactured in Israel. Sinosat will provide ground service.
CASC will be used to launch the HKSAT satellites from the Xi Chang satellite Launch Center. The first satellite HKSAT-1 is scheduled to be launched in 2004, with the second satellite launched 18 months later.
HKSTG expects to launch 7 HKSAT satellites, which will position the company to be the premier direct TV service provider in Asia.
