Commercial breakthrough for Falcon 9.

SPace Exploration Technologies Corp. (SpaceX) has signed a contract with UK-based Avanti Communications Group (Avanti) for the launch of Avanti's HYLAS Ka-band satellite to geostationary transfer orbit (GTO) on board a SpaceX Falcon 9. Of the seven Falcon 9 launches on the SpaceX manifest, Avanti is the first commercial geostationary telecommunications customer.

The contract also includes options for up to three additional satellite launches. If Avanti were to exercise those options, the value of the transaction would be approximately $150 million at standard list prices.

Scheduled to lift off from the SpaceX launch complex at Cape Canaveral Air Force Station in Florida between 31 March and 31 December 2009, the HYLAS satellite will provide broadband and data communications services to European customers in 22 countries. It will occupy a geostationary orbit at 33.5 degrees west longitude, with an expected lifetime of 15 years.

Under NASAs Commercial Orbital Transportation Services programme, SpaceX plans to conduct three flights of its Falcon 9 launch vehicle and Dragon spacecraft for NASA. This will culminate in Dragon berthing with the International Space Station and returning safely to Earth. When the Shuttle retires in 2010, Falcon 9/Dragon will have the opportunity to replace the Shuttle in servicing the Space Station.

Avanti describes itself as the only licensed fixed and broadcast satellite operator headquartered in the UK. In August 2005 Ofcom awarded Avanti the right to provide satellite services using the geostationary orbital position at 33.5 degrees west with 3.6Ghz of radio spectrum which provides coverage of Western Europe and most of Central and Eastern Europe. The Company's first satellite, HYLAS, is financed and under construction for delivery in December 2008. Avanti currently provides satellite telecommunications services to customers in Europe (using leased satellite capacity) which will transfer to HYLAS on launch. The core applications for which Avanti expects HYLAS capacity to be used are broadband, corporate networks and video distribution.

Avanti recently signed a debt facility agreement to borrow 32m [pounds sterling]. The company says the debt facility provides sufficient capital for Avanti to complete the financing of its satellite construction, launch, insurance and operation together with working capital. No further funding is expected to be required for the HYLAS project.