Banking on the expertise of Filipino engineers, Asia Broadcast Satellite (ABS) is establishing its Mabuhay Satellite Corporation (MSC) Subic Space Center as the hub of its regional operations to control a handful of satellites serving clients in Asia, Russia, Africa and the Atlantic Ocean.

“Our MSC acquisition will augment the Philippines’ capability to fly multiple satellites to serve these markets,” according to ABS CEO Tom Choi.

Over the next couple of years, ABS will sink in USD$800 million in the 5 satellites -- Agila 1 and 2, ABS1, 1a, 2 and 6 -to be controlled by its Filipino staff from Subic. The company also plans to list in the 3 big international bourses. Initially, the company will invest $205 million in MSC, which it has acquired for an undisclosed price, and then $300 million to build a second satellite, ABS2.

MSC was the first Philippine entity to own and operate a communication satellite. Its Agila 2 satellite, launched in 1997, is good for another half decade. It covers Asia, from India to the Philippines, Japan to Indonesia and connectivity to the U.S.A from its spot beam over Hawaii. Its transponders provide capacity for TV distribution, DTH and VSAT services in the Philippines, Coastal China, Taiwan and Hong Kong.

“MSC’s acquisition is strategic for ABS,” Choi stressed. ABS, one of the youngest satellite operators in Asia, is expanding its satellite fleet and business worldwide by procuring new high powered satellites. It expects 15 percent of its revenues will now come from its Philippine operations after the consolidation of MSC.

Indeed, “The acquisition will ensure the future continuity of MSC’s Subic Space Center and ensure its expansion to support ABS’ growing satellite operation needs,” acknowledged MSC CEO Gabriel Z. Pimentel.

ABS currently hosts over 90 channels on its ABS-1 satellite, making it one of the fastest growing and top satellite distribution platforms for cable TV in the Indian Ocean region. Its ABS2, slated to be operational in 2012 and operated from Subic, will be one of the largest FSS satellites to be launched over the Eastern hemisphere. Together with ABS1, it will be the most powerful orbital position in the Asia Pacific and Indian Ocean region.