Intelsat and Television Broadcasts (TVB) will set up a joint venture, Galaxy Satellite Broadcasting, offering pay-TV service for Hong Kong. Intelsat will own a 51 percent stake in the venture, which is licensed to provide satellite pay-TV services as well as teleport services in Hong Kong.

Intelsat and TVB are contributing cash, transponder capacity and programming valued at more than $136 million. Under the agreement, Intelsat will provide $53 million in cash over three years and transponder capacity worth $16.5 million. TVB will provide $25.2 million in cash over three years and programming valued at $41.6 million.

Intelsat will move an Intelsat VII series satellite to the 85º East orbital location to transmit the Galaxy service via a high-powered Ku-band beam. Service is expected to begin within 12 months.