Avanti Communications Share Discussion Threads

[someuwin] 07/4/2010 19:24

"Avanti Communications* (AVN) - Satellite operator's shares could go into orbit

Infantile technology companies all too often fail because their product, however ingenious, fulfills only an imagined need. Not so Avanti Communications. People living in rural communities are often deprived of access to broadband internet, for the simple fact that the economics of extending access into remote communities usually doesn't add up for operators. Avanti Communications is working to address this issue through offering broadband bandwidth through satellites in geo-stationary orbit. The company secured funding for the second of its 'Hylas' satellites in January, and the first one will be ready for launch in August with coverage extending across Europe. The company's satellites utilise new technology that will enable Avanti to offer speeds of between 2Mb and 50Mb at comparable prices to other broadband providers to any location in the UK. Furthermore Avanti will simply act as a capacity merchant to broadband providers, thereby avoiding the travails of the customer-fa cing side of the industry.

Whilst the company is currently loss-making, the success it has had in securing supply deals has been such that CEO David Williams felt confident enough to suggest that further launches would be funded from cashflow rather than through more dilutive placings. Indeed, the scale of recent contract activity seems to support Williams' assumption. In a trading update the company said it is confident that it will comfortably exceed its target for pre-sales in launch year [of Hylas 1] of 25%. In particular, it has signed a contract with an unnamed customer (subject to the completion of some asset financing by the customer) for 320mb of Hylas 1 capacity serving Eastern Europe, representing approximately 10% of the satellite's capacity and potentially worth EURO21.9 million of revenue. Avanti has also signed contracts with three new UK-based customers, and reports "several other large contracts under negotiation which are expected to close in the coming weeks" including "several contr acts under negotiation for large pre-sales on Hylas2". Hylas 2, due for launch in 2012, is 2.76 larger than Hylas 1, and will provide additional coverage in Europe as well as opening up the high-growth markets of Africa and the Middle East."

[tritan] 06/4/2010 08:57

Excellent news. Bring on the rest!!

[someuwin] 06/4/2010 08:53

Contract Win


TIDMAVN

RNS Number : 6982J
Avanti Communications Group Plc
06 April 2010

?
+--------------------+-------------------------------------------------+
| Date: | 6 April 2010 |
+--------------------+-------------------------------------------------+
| On behalf of: | Avanti Communications Group plc ("Avanti" or |
| | "the Company") |
+--------------------+-------------------------------------------------+
| Embargoed for | 0700hrs |
| release: | |
+--------------------+-------------------------------------------------+

Avanti Communications Group plc
Contract Win

Avanti Communications Group plc (AIM: AVN), the broadband satellite operator, is
pleased to announce that it has sold capacity on its second satellite, HYLAS 2,
to Hughes Network Systems ("Hughes") for a term of five to ten years with a
total value of up to US$17.4m.

HYLAS 2 will serve Europe, the Middle East and Africa and is due to be launched
in 2012.

This transaction is additional to Hughes' purchase of capacity on Avanti's HYLAS
1 satellite in 2009 and extends Hughes' geographic Ka band coverage.

Hughes is the global leader in providing broadband satellite networks, services,
and products for large enterprises, service providers, governments, small
businesses, and consumers.

Avanti has also purchased equipment from Hughes for use at the HYLAS 2 network
control centre, which is in line with capital budgets and is financed under the
US EXIM debt facility.

Commenting on the contract, David Williams, Avanti's Chief Executive, said:
"This is our first significant sale of HYLAS 2 capacity and demonstrates the
strength of demand we have already seen for the service in the Middle East. Our
partnership with Hughes is also expected to generate significant additional
business opportunities in the region for Avanti.
"Hughes also owns and operates its own Ka band satellite in the USA and I am
therefore proud that the US market leader has made such a strong statement of
faith in Avanti's ability to execute its plan to launch and operate high quality
broadband satellites."

---ENDS---

[tritan] 06/4/2010 08:49

Guys, any detail as I cant view RNS from work for some reason. What contract win :) !!!!!!

[jonnyno1] 06/4/2010 08:39

and the contracts just keep on coming!!

[terryebby] 06/4/2010 07:50

NICE !!! Wow, that's a big sale. Wouldn't mind being on the end of that salesman's commission check

[someuwin] 06/4/2010 07:45

Good contract win!

[terryebby] 05/4/2010 14:16

gigabit speed ? Lies, damned lies and journalism ...

[horneblower] 05/4/2010 11:49

From the link in post 1284...

""In November 2008, Avanti announced that it had entered into a long term
strategic partnership with BT to use BT's Goonhilly's (in Cornwall) satellite
uplinking facility to transfer all traffic between the HYLAS satellite and the
internet. The two companies also signed a collaboration agreement for certain
satellite broadband opportunities""

...

Presumably there's a link here with the Times piece on providing Corwall with 100 to 1000 Mbs broadband.

What I can't get my head around is by what method are they going to deliver gigabit speed when the current satellite speed is only 2 megabits.

Someone put me out of my misery please.

[yorgi] 05/4/2010 10:05

Yes it would be good if we had a RNS to confim that in the next fee days or weeks

[smarm] 04/4/2010 10:47

Terry - nice, thanks.

S

[terryebby] 03/4/2010 14:24

look at this from The Times today .....

[arai] 03/4/2010 13:46

Avanti's target market includes corporates (SME to multinationals),
telecommunications companies (e.g. large PTTs, ISPs, VNOs, resellers and
mobile), media (e.g. professional video networks that need to beam content back
to base, satellite news gathering and transporting content within media
organisations) and military (e.g. homeland security and battlefield).

Good to see that it has many features and not just targeting tv or broadband. The hardest part is to get people to point dishes at it. A good price at this level I would guess.


A.

[terryebby] 03/4/2010 10:05

Arai There is a pretty fuill exposition of the business model at by Equity Development - I dont know who they are but its a detailed note. Their NPV Value uses a discount rate of 12.5% and says on that basis the two projects together mean the share price today should be £11. I dont know why there is such a big difference between the brokers valuations and the share price

[arai] 02/4/2010 15:58

Be interesting to see if the business model is really to have retail customers or just hive out the bandwidth to resellers who will charge £40+ pm and £800 setup costs.

A.

[yorgi] 02/4/2010 12:39

All we need now is some contract won anounced and we should return to moving up. It always seems the same as far as I can see that it is difficult breaking the trend of a share price and this surely is being oversold

[tritan] 02/4/2010 12:01

Yep, my mistake guys, it was £20. I even watched the BBC2 programme so must be having one of those days!!!

[yorgi] 02/4/2010 11:44

Yes I'm sure it was £20 as well which I would have thought was much more like a figure that would not prevent people from taking up the service

[terryebby] 02/4/2010 10:19

on BBC2 the other week I am sure he said it was as low at £20

[tritan] 02/4/2010 09:57

Nice one Arai.

David Williams reckons he can supply monthly bradband for £30 per month so thats undercutting the competition by the looks of it.!

[arai] 02/4/2010 08:57

Whats available and a brief description ........



A.

[yorgi] 01/4/2010 10:04

I believe he said 50%......I didn't think they had sold that amount already but I could be wrong

[simon gordon] 01/4/2010 09:23

Questor tip:



EDIT: I thought he said they'd sold 50% capacity, on 2nd listen it sounds like 15%.

[yorgi] 31/3/2010 13:05

It should.....just wish it would get on towards there Someuwin !!!