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).
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.
Moshe Keret, IAI's President said during the signing ceremony that, "this venture is a win-win situation for all the
parties involved and that the program is based on a long term relationship. This venture is particularly satisfying
because it validates the IAI strategic decision to enter the space system market."
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.