Satellites

Intelsat severs ties with Galaxy Satellite TV

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MUMBAI: Global communications company Intelsat has announced its decision to end its 51 per cent participation in the Hong Kong based Galaxy Satellite TV Holdings Limited, whose subsidiary Galaxy Satellite Broadcasting Limited provides local and international pay-TV programming to the Hong Kong market.



Intelsat CEO Conny Kullman has been quoted in an official release as saying, "We continue to believe that Galaxy's service offering represents an attractive alternative for pay-TV subscribers in Hong Kong."



"Galaxy's growth has been slower than anticipated, however, and it is not in Intelsat's strategic interest to invest additional resources and management time on this business," says Kullman.



According to the communiqué, Intelsat's partner in the Galaxy business, TVB, will acquire Intelsat's share in the joint venture and has agreed to release Intelsat from any future cash contributions.



With this, a related existing agreement for Intelsat's in-kind contribution of satellite capacity on the IS-709 satellite will end on 31 March 2005. Intelsat's financial results for the period ended 30 September 2004 will reflect a non-cash charge of approximately $30 million to write down the Galaxy investment.

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