TVNZ offshoot forms Intelsat alliance

By SIMON HENDERY

Television New Zealand's global satellite linking subsidiary, TVNZ Satellite Services, has formed an international alliance that looks set to boost the state-owned broadcaster's revenue by millions of dollars a year.

TVNZ says the deal with Intelsat Global Sales and Marketing will give broadcasting customers around the world access to a global network of satellite and terrestrial infrastructure complemented by a portfolio of television broadcast services.

Satellite Services has a staff of less than 30 and specialises in arranging one-off satellite links around sporting and other events for broadcast companies.

Its contribution to TVNZ's books is not disclosed separately on the company's accounts but the subsidiary's net profit last year is believed to have been between $7 million and $9 million.

Speaking from London where he is marking the launch of the alliance, Satellite Services managing director Sam Fairhall said the Intelsat deal had the potential to eventually quadruple revenue.

The money will be a welcome boost to TVNZ's coffers as it moves to implement its charter obligations without the financial assistance of its former telecommunications subsidiary BCL, which has been split off into a separate operation.

"Our customers are facing significant business challenges brought about by the velocity of global change in the industry," Fairhall said.

"As a television broadcaster as well as an occasional use service consumer and supplier, TVNZ has first-hand knowledge of what is required to deliver this added value."

Intelsat was an intergovernmental organisation owned by its member countries until it was privatised in 2001.

Fairhall said he could not say more about the financial aspects of the deal.