UK Satellite Operator Avanti Delays HYLAS1 Broadband Satellite Launch

Satellite ISP Avanti Communications has revealed that the first of its next generation broadband satellites - HYLAS 1, which will offer internet download speeds of up to 8Mbps to anybody in the UK from £25 per month (more price details), has been delayed by 6 weeks from its original late-September 2010 launch.
 

 
The situation, which appears to be largely out of the Satellite operators control (see below), means that Avanti will lose the 'first to market' advantage that it would of had over its closest rival Eutelsat.
 
Eutelsat plans to launch a 10Mbps capable KA-SAT Satellite (Tooway) service before the end of this year (more details); Tooway ISPs currently charge around £30-35 per month for a 3.6Mbps service with a measly 2.4GB monthly usage allowance.
 
Avanti also announced that it had completed a conditional placing of new ordinary shares, which has raised an extra £70 million (before expenses) for the company. This cash will be used to help pay-off the debt on its HYLAS 1 construction, initiate the procurement of HYLAS 3 and it will also provide additional resources for the Company to re-domicile the HYLAS 2 assets offshore.
 
The new services from Avanti and Eutelsat both look promising, yet we still do not know the final package details; it's likely that the price point posted by Avanti does not include an ISPs profit margin for the service. We expect that Avanti and Eutelsat will both end up with incredibly similar products, much will thus depend on the service speed and usage allowance flexibility.