Plans by APT Satellite Holdings to develop a US$300 million direct broadcasting satellite (DBS) business moved forward yesterday with the successful in-orbit testing of its Apstar-IIR satellite. President He Kerang said commercial operation of the satellite was due to begin soon, and the successful launch of Apstar-IIR paved the way for the company to expand its share of the market. Apstar-IIR is APT's third successful satellite launch. The satellite had a lease-out rate of about 50 per cent before the launch. It is expected to grow about 70 per cent next year. Its C band transponder costs about $2 million a year to lease, while the Ku band costs about $3 million a year. The company's next project will be the DBS Apstar IIID, expected to be launched in 2000. This satellite will provide a higher yield, with an annual lease of a transponder costing between $3 million and $5 million. APT secretary Brian Lo said the launch would cost more than $300 million, covering the construction of the satellite, the launch and the insurance premium. Mr Lo said Apstar-IIR would provide Ku band transponders, which can conduct direct-to-home satellite broadcasting.
