Telecoms satellite will be ‘profitable': DPM
Telecoms satellite will be ‘profitable': DPM
Commercial operation of Laos' first telecommunications satellite, which was recently put into orbit, will be ‘profitable' and contribute significantly to the country's socio-economic development, the Deputy Prime Minister told the National Assembly on Friday.
Mr Somsavat Lengsavad, who is in charge of the project, made the comment when talking about state-invested projects at the ongoing 10th Ordinary Session of the Assembly.
The satellite ( Lao Sat-1), which was designed, developed and delivered into orbit by China, blasted off from the Xichang Satellite Launch Centre in China's Sichuan province on November 21.
Mr Somsavat told parliamentarians the government signed an agreement with foreign companies on October 30 for a joint venture to operate the project on a commercial basis.
The Lao government holds a 45 percent stake in the project, with the China Asia-Pacific Mobile Telecommunications Satellite Co., Ltd. holding a 35 percent share, Space Star Technology Co., Ltd. holding a 15 percent share and Asia-Pacific Satellite Technology holding the remaining 5 percent.
“The shareholders are preparing to set up a joint company to operate this project for commercial gain,” he said.
The deputy prime minister said the joint company will be formalised by the end of this year and commercial operation is set to begin next month. The satellite has a working life of 15 years.
According to the plan, the joint company will make a profit and repay the loan borrowed by the Lao government from China to develop the project.
The project will also generate a surplus, which can be invested in a new satellite when the existing satellite is no longer operational, Mr Somsavat said.
“We plan to develop another satellite to replace the current one after it is retired from service by using the revenue earned from the project,” he said.
Lao television stations currently spend millions of dollars to lease satellite signals from other countries.
Mr Somsavat said the satellite command station in Hadxaifong district, Vientiane, was functioning around the clock to operate the satellite. Some 50 Lao personnel who completed training courses in China are now working in rotation at the station.
In 2012, the Lao government signed a US$259 million loan agreement with the Export-Import Bank of China to secure funding for the project. Laos is required to repay the loan and the interest, which amounts to US$341.1 million, by 2033.
The Lao Sat-1, which was launched into the 128.5 degrees East orbital slot, will provide 22 transponders for both television and telephone use but current demand in Laos requires the use of only two or three transponders.
The 22 transponders can reach 15 nearby countries, which means Laos can rent out the transponders to these countries.
Officials in charge of the Lao-Sat 1 project could not provide details about rental fees for the Lao satellite and whether the cost of internet and telephone usage in Laos would be cheaper once the satellite is operational.
More than 50 countries own a satellite or a significant share in one. There are 502 active satellites with a US tie; 118 for Russia and 116 for China.
Many Asean member countries now have their own satellites, except Cambodia and Myanmar. The competition for satellite operations is higher in Laos because satellites owned by other Asean countries are also seeking to sell transmission rights here.
