Commercial operation of Laos' first telecommunications satellite, which was recently put into orbit, will be profitable and contribute significantly to the country's socio-economic development, Lao Deputy Prime Minister has told the National Assembly.

According to local daily Vientiane Times on Monday, Somsavat Lengsavad, who is in charge of the project, made the comment when talking about state-invested projects at the ongoing 10th Ordinary Session of the Assembly on Friday.

The satellite (Lao Sat-1), which was designed, developed and delivered into orbit by China, blasted off from the Xichang Satellite Launch Center in China's Sichuan province on Nov. 21.

Somsavat told parliamentarians that the government signed an agreement with foreign companies on Oct. 30 for a joint venture to operate the project on a commercial basis.

The Lao government holds a 45 percent stake in the project, with the China Asia-Pacific Mobile Telecommunications Satellite Co. Ltd. holding a 35 percent share, Space Star Technology Co., Ltd. holding a 15 percent share and Asia-Pacific Satellite Technology holding the remaining 5 percent.

"The shareholders are preparing to set up a joint company to operate this project for commercial gain," he said, adding that the joint company would be formalized by the end of 2015 and commercial operation is set to begin in January 2016.

The satellite has a working life of 15 years. According to the plan, the joint company will make a profit and repay the loan borrowed by the Lao government from China to develop the project.

The project will also generate a surplus, which can be invested in a new satellite when the existing satellite is no longer operational, Somsavat said.

"We plan to develop another satellite to replace the current one after it is retired from service by using the revenue earned from the project."

Lao television stations currently spend millions of dollars in leasing satellite signals from other countries.

Somsavat said the satellite command station in Hadxaifong district, Vientiane, was functioning around the clock to operate the satellite. Some 50 Lao personnel who completed training courses in China are now working in rotation at the station.

In 2012, the Lao government signed a 259 million U.S. dollar loan agreement with the Export-Import Bank of China to secure funding for the project. Laos is required to repay the loan and the interest, which amounts to 341.1 million U.S. dollars, by 2033.

The Lao Sat-1, which was launched into the 128.5 degrees East orbital slot, will provide 22 transponders for both television and telephone use although two or three transponders are enough to meet the current demand of the country. The 22 transponders can reach 15 nearby countries, which means Laos can rent out the transponders to these countries.

More than 50 countries own a satellite or a significant share in one. Many ASEAN member countries now have their own satellites, except Cambodia and Myanmar.

Source: Xinhua News Agency