Satellite network for Wales

CableTel South Wales is promising to slash Welsh buisnesses' telephone bills by 25 per cent, with the introduction of the UK's second satellite network, taking a chunk from BT and Mercury's customer base.

The #50m project will include a purpose built multimedia centre and a dedicated earth station for direct two-way communication with the Orion 1 satellite.

Based at the Celtic Gateway Park, the project is expected to generate up to 300 jobs within the next 18 months.

The digital satellite network will provide broadband telecommunications services including data and video transmission to North America, Europe and the Mediterranean this year.

Speaking at CableTel's project launch in Cardiff last week, managing director Terry Ryan said: "My main concern is generating business for Wales. I don't care about competition from BT. I expect competition from Mercury."

ITG is licensed as an international fixed link satellite operator and has applied to the DTI for an international facilities licence (IFL) which is expected to be awarded next year, allowing ITG and CableTel South Wales to offer independent international telephony.

CableTel said that the company plans to have the telephone service running by the beginning of next year, with an imminent signing with a major company to take place within the next two months.

TCI is responsible for setting the telecoms tariffs. TCI chairman Chris Turner, added: "CableTel will cut out others by offering low priced telecoms service. Businesses won't use the leased lines that BT or Mercury offer because they're simply too expensive."

Working with the Welsh Development Agency, the Cardiff Bay Development Corporation claimed the satellite links will give businesses direct access to the global market.

The scheme is a result of a #2.5bn urban rejuvenation scheme, which has attracted #800m of private investment and has full backing from the UK Government.

William Hague, Secretary of State for Wales, said that the launch "is a major contribution in the promotion of the Bay as a centre for excellence in multimedia information". He added that the satellite link "will put Cardiff at the leading edge of telecommunications".