NewSat Limited (ASX:NWT)
Melbourne, April 15, 2009 AEST (ABN Newswire) - NewSat Limited (ASX:NWT)(PINK:NWTLY) In response to many queries from shareholders on the subject of NBN, and following the release of Government policy, NewSat wishes to update all shareholders and the market of our position in relation to our plans to launch a satellite In November 2007, we announced our intentions to seriously pursue the opportunity to launch Australia's first non-government/non-foreign owned, predominantly Ka band geostationary satellite.
It was obvious that satellite communications, and more particularly space over the Asia Pacific region was at a premium, and that as technology improved, Australia's thirst for space would increase. Whilst NewSat is able to, and has procured space for its satellite communication endeavours, it is aware of the need to secure its own long term bandwidth supply. Satellite ownership does just that.
NewSat enjoys daily communication with most of the worlds satellite and space providers courtesy of its Perth and Adelaide teleports, and is accordingly abreast of the latest in space technology. It's relationship with ViaSat Inc. spawned its interest in provision of Ka band, following ViaSat and EutelSat's decision to launch Ka band satellites over the northern hemisphere 18 months ago. This new satellite technology promised unprecedented speeds and capacity, and in the period since it's initial announcement, NewSat has continued to work with numerous suppliers to turn the vision into reality.
NewSat created Jabiru for the purpose of financing and building the satellite. NewSat is now significantly advanced in negotiations for finance, insurance, launch and construction for it's satellite. It is currently well advanced in discussions with potential customers, locally and internationally, in both retail and business sectors for space contracts over multiple bands. It has access to a fully coordinated slot ideally positioned over Australia and the Pacific region.
The Federal Governments decision to create a new vehicle for delivery of communications over Australia is welcomed by NewSat, especially with their acknowledgement that satellite is included as a serious delivery option. NewSat has always believed that Ka band could well serve in the order of 10% of the currently disenfranchised Australian population, especially our farming and rural sectors. Indeed, the Government have said they propose two new generation satellites to cater for the last 10%. NewSat is pleased it is so advanced in its ambitions and that this Government is pro-satellite. Of course, the company will push ahead to cater for its own needs and its customer requirements, and at a later stage consider selling some of its core network into the NBN if the Government requires it.
NewSats satellite may comprise more than simply Ka band technology. Its own rapid growth and the call from existing partners may add Ku and C band to the equation.
2009 remains the most exciting year in NewSats growth. Once results from the current financial years activities are posted, Directors are confident they will be able to address a number of areas to enhance shareholder interests such as share buyback, consolidation and appointment of new Directors. Coupled with accurate forecasting, no cash burn and month on month profitability, shareholders will benefit from a company with no debt, significant assets and a long term vision for the future.
Contact
John Walker
Chairman
Tel: +61-3-9674-4644
Fax: +61-3-9674-4655
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