Mitsubishi is expected to deliver the SingTel-Chunghwa Telecom satellite by 2010, in good time to replace the aging ST-1 satellite which will be mothballed in 2011.

ST-2, in which Singapore Telecommunications has a 62 per cent stake, will 'offer significantly greater capacity as well as wider coverage than ST-1 to also include emerging markets such as the Middle East', the telco announced on Tuesday.

SingTel has a fleet of six satellites and access to another 30 satellites worldwide. It has three satellite stations with links to 80 countries in Singapore.

Demand for the new souped-up satellite, which 'will cater to the strong demand for fixed and mobile satellite services and IP-based solutions", has been good, said SingTel.

'Even before its launch, more than half of ST-2's capacity has been signed-up by regional customers,' said SingTel executive vice-president for business Bill Chang.

SingTel shares closed 8 cents down to $2.42 on Tuesday.