SINGAPORE and HONG KONG, May 10, 2011 /PRNewswire-Asia/ -- China Mobile Satellite Communications Group Limited ("CMSCG" or the "Group") targets robust growth in the PRC mobile satellite communication market as it develops the industry in exponential pace with Thuraya Telecommunications Co. ("Thuraya"), the UAE-established leading global GEO satellite mobile telecommunication operator.
Both parties have earlier signed a partnership agreement where CMSCG will be the only distributor for Thuraya's satellite mobile telecommunication devices as well as the one and only provider of Thuraya's satellite mobile telecommunication services in China. In addition, Thuraya will be providing full-scale extensive technical and marketing support to CMSCG as it seeks to expand its operations in the PRC market.
There are also preliminary plans to construct and operate a gateway to accelerate the development of the industry as greater demand calls for the installation of the gateway to improve the frequency transmission.
In year 2010, CMSCG obtained the approval from the MIIT of China to sell and distribute the satellite communication services and products of Thuraya in China using the "L-band" frequency. This is the first time that a MSS provider is permitted to legally offer mobile satellite voice and data communication services in the PRC.
"The mobile satellite voice and data communications market is at an infancy stage in China. Recent catastrophes, such as the Sichuan Earthquake and the tsunami in Japan, have made people acutely aware of the chronic needs for satellite voice and data communications when other communication means, such as mobile and fixed line networks, are disrupted and/or unavailable. Potential customers include government agencies, e.g. the emergency rescue departments, the forestry departments as well as other classic industrial users such as maritime, fisheries, mining, oil and gas exploration, etc. We are excited about our partnership with CMSCG to exploit this vast but virtually untapped market", said Mr Semar Halawei, CEO of Thuraya Telecommunications Company.
"We are extremely pleased that we have secured Thuraya as our strategic partner. Thuraya is one of the world's largest MSS providers. According to our preliminary survey, there are over 3 million potential satellite voice and data users in China. Obviously, full penetration will take over a few years. We are currently targeting 300,000 government and institutional users in our first three years of operations. We are also in advanced negotiations with one of the mobile telecom providers in China to market Thuraya's dual mode (satellite and GSM/CDMA) phones to high end retail customers," said Mr Zhang Jianhua, Chairman & CEO of CMSCG.
"We are currently in M&A discussions with Singapore-listed Armada Group Limited and the progress is on track," Mr Zhang added.
Glossary Terms
| "Gateway" | In telecommunications, a Gateway refers to a network node equipped for interfacing with another network that uses different protocols in a communications network. |
| "MIIT" | Ministry of Industry and Information Technology of the People Republic of China (PRC) |
| "Mobile Satellite Services (MSS)" | Refers to networks of communications satellites intended for use with mobile and portable wireless telephones. There are three major types: AMSS (Aeronautical Mobile Satellite Service), LMSS (Land Mobile Satellite Service), and MMSS (Maritime Mobile Satellite Service). |
About China Mobile Satellite Communications Group Limited
China Mobile Satellite Communications Group Limited ("CMSCG") was formed in 2010. In the same year, it obtained the approval from the MIIT of China to sell and distribute the satellite communication services and products of Thuraya in China using the "L-band". This is the first time that a satellite service provider is permitted to legally offer mobile satellite voice communication services in the PRC. CMSCG will distribute satellite mobile communication hardware and provide voice and data services to the nascent Chinese market.
CMSCG or the relevant holding company is in the midst of an acquisition offer by Singapore-listed Armarda Group Limited (the "Armarda"). The acquisition is subject to, inter-alia, shareholders' approval. Armarda has been listed in the Catalist board of Singapore since 2004.
About Thuraya Telecommunications Company (www.thuraya.com)
Founded in January 1997, Thuraya is a mobile satellite telecommunications company based in Dubai, UAE. It is owned by a consortium of leading telecommunications operators and reputed investment firms in the region. Etisalat, the largest telecom operator in the Middle East and Africa, is one of its substantial shareholders.
Thuraya provides cost-effective mobile satellite services in more than 140 countries in Asia, Africa, Europe, Australia and the Middle East. Services provided by Thuraya include broadband, maritime, mobile voice that support dual GSM and satellite mode, rural telephony, fleet management and other advanced applications that enable people and businesses everywhere under its coverage to enjoy constant access to communications and information. Thuraya enhances sectors such as oil and gas, mining, agriculture, NGOs and maritime services through its cutting edge technology.
The Company launched its third satellite in January 2008, which has brought countries of the Asia-Pacific region under its footprint and extended its coverage to nearly two thirds of the globe's population.
Issued for and on behalf of China Mobile Satellite Communications Group Limited
| Aries Consulting Limited (Hong Kong) | Mr. Ebrahim K. Ebrahim |
| Kent Lo / Terence Wong | Corporate Communications Department |
| Kentlo@ariesconsulting.com.hk | Thuraya Telecommunications Co. |
| Terence.wong@ariesconsulting.com.hk | Post Box 283333 Dubai, UAE |
| Tel: +852-2610-0846 | Tel: 971-4-4488-828 |
| Fax: +852-2610-0842 | Fax: 971-4-4488-899 |
| Email: e_ebrahim@thuraya.com |
