Chunghwa Telecom to cooperate with SingTel to launch communications satellite in 2010

Chunghwa Telecom (CHT), on September 18, announced that its wholly owned subsidiary Chunghwa Telecom Singapore (CHT Singapore) and Singapore Telecommunications (SingTel) will establish a joint venture, ST-2 Satellite Venture Private Limited, specifically to build a communications satellite, ST-2. The satellite is planned to launch in the fourth quarter of 2010 to replace existing satellite ST-1 which was launched in 1998 by CHT and SingTel on a joint venture basis and is scheduled to go out of commission in 2011.

CHT Singapore will invest S$60 million (US$41.87 million) for a 38% stake in the joint venture, while SingTel will hold the remaining 62% stake, CHT indicated. ST-2 will occupy the same orbit as ST-1 covering Asia and the Middle East but will have stronger transmitting power and a longer service life of 15 years, CHT pointed out.

In addition to voice, data and video communications, CHT will use ST-2 for various IP-based applications including Internet access, VoIP and enterprise resource management, CHT indicated. CHT will integrate ST-2 with its multi-routing broadband submarine cable systems to make up CHT's east Asian communications hub, the company noted.

The total cost of making and launching ST-2 is roughly estimated to be NT$8.5 billion (US$266 million). SingTel will handle international open bids and related affairs, CHT pointed out.

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