Mitsubishi buys local satellite company
By John Duchemin
Advertiser Staff Writer
Mitsubishi Corp. has bought local satellite company USAsia Telecom, provider of a satellite-based high-speed Internet service, for an undisclosed sum.
The move by Mitsubishi to buy 80 percent of USAsia, which runs the SkyTiger.net broadband service over a network of satellites, gives USAsia a chance to expand its international business and add jobs and infrastructure in Hawai'i, company officials said.
The deal also gives Mitsubishi's telecommunications division a foothold in the United States.
Mitsubishi announced plans to expand the company's Hawai'i infrastructure. The Japanese multinational giant may spend $2 million by the end of 2002 to add four satellite dishes and beef up data center capabilities at the Kapolei satellite port, where USAsia has two dishes.
USAsia has about 17 employees in Hawai'i and said more may be added as part of Mitsubishi's expansion plans.
USAsia offers its SkyTiger service to Internet service providers in areas with scant access to conventional high-speed fiber-optic lines, including regions of China, India and Vietnam. The company has used its Hawai'i satellite dishes in Kapolei and Sunset Beach to "one-hop" data from communications satellites positioned near North America to other satellites near Asia.
"Demand is strong, and we've peaked out the capacity of our equipment, so this gives us a chance to go get new customers," said Andrei Saveskie, director of network operations for USAsia.
Founded in 1997, USAsia has been profitable for more than a year. Company officials estimated annual revenue at $20 million.
The company has not been much affected by the telecommunications slowdown, which is largely the result of overspending by land-line network builders. Saveskie said USAsia is pursuing a completely different customer base than the land-line network providers, many of whom face bankruptcy as customer demand has been sparser than anticipated.
"We're going into areas where the Internet demand is very high, but the infrastructure is very limited," Saveskie said.
The purchase by Mitsubishi could give USAsia access to the Japanese market, where as much as 30 percent of the nation lacks fiber access, Saveskie said.
Mitsubishi is one of the world's largest trading and manufacturing companies, with branches in electronics, information technology, fuels, metals, machinery and chemicals.
Saveskie said USAsia employees, many of whom owned stock or options, have been compensated for their shares by Mitsubishi, which officially took over in late June.
USAsia founder Stuart Browne will retain 20 percent of the company's ownership and the presidency, Saveskie said.
The company's expansion plan was welcomed by Campbell Estate officials, who have promoted the Kapolei teleport as a site for communications companies to bounce signals between the United States and Asia. The teleport, with a total of 15 dishes, is near Hawaiian Waters Adventure Park.
