Chapter 62: In fact, you can also get a wholesale price for buying satellites

In fact, if it wasn't too demanding, there were quite a lot of places to play near Shanghai, otherwise Davis and the others wouldn't have gone around and didn't want to go back to China.

In addition, there is another outstanding advantage here, which is that it is much more convenient than other cities in China.

After Davis and others received the instructions of Fan Wubing to buy a satellite, they immediately took action and contacted the United States. They found that there was a ready-made opportunity to use.

Currently, there is only one company in Hong Kong that operates commercial satellites in the entire Asian region. This company was established in 1988 and launched its first satellite, Asia One, in 1990.

Asia Satellite Company is also a company under the Li family in Hong Kong, while Asia 1 Satellite is a stationary orbit communication satellite manufactured by Hughes, the United States. The satellite body is a cylinder with a diameter of 2.2 meters and a height of 6.5 meters. It has twenty-four C-band transponders, weighing 1.25 tons, and has a designed operating life of ten years.

This satellite was originally the American Western Union VI. It was launched into space by the US Challenger space shuttle in February 1984, but it failed to enter orbit and was later recycled by the US Discovery space shuttle. After renovation, it was purchased by the Asian Satellite Communications Company and named Asia One. It was successfully launched from the Xichang satellite launch base by the Long March 3 carrier rocket, mainly providing communication services to China and Asian countries.

The reason why Li Zekai wanted to engage in satellite TV is because of this communication satellite. Since he had this operating platform, he could also make full use of it while providing services to others.

However, Asian Satellites actually do not have the R&D capabilities of satellites, nor does they have rocket launch technology. They are just a bag company, but they are just the actual owners of satellites. Regarding satellite manufacturing and launch, they need to purchase from the outside.

Since Fan Wubing wants to buy a satellite, he naturally cannot obtain it from such a company. One is to do so, which is like being exploited by a second dealer. The other is that the time period for newly designed and manufactured satellites and launches is too long, and Fan Wubing doesn't have much time to wait.

Therefore, we can't count on Asian Satellite Company. After Davis received the instructions of his boss, he contacted Hughes in the United States directly. After learning that Fan Wubing's company was interested in purchasing satellites, Hughes' executives were very excited. This was a big deal!

So Hughes Company immediately responded and would send an expert team to Shanghai within three days to meet with Fan Wubing and others to discuss related contents such as satellite performance and price.

"Boss, it seems that Hughes' satellites are not easy to sell!" Davis said to Fan Wubing with a smile after receiving Hughes' reply.

Fan Wubing laughed, "Do you think you are selling instant noodles in the supermarket, one car a day! Where can ordinary people afford satellite things? Even if you buy them, you may not be able to use them!"

At least the country has strict control over communication operations. If you don’t get an operation license, you will have no place to use even if you have ten satellites!

If the Li family had not been in a mixed manner in Hong Kong, the mainland needed to use this to influence the political situation in Hong Kong before 1997, it would probably have been for the sake of profit.

After staying in Shanghai for three days, Xia Xue always led Fan Wubing around. The girl has a good personality and was influenced by American education. Therefore, when facing Fan Wubing, she looked very refreshed, and her youthful and charming appearance, she was completely a standard commentator, which made Fan Wubing feel relaxed and happy when visiting.

Although I always think that Xia Xue is a child, this child is indeed not young, at least more than one year older than Fan Wubing's physiological age. The two of them get along well together when they get along.

On September 25, the expert team of Hughes Company in the United States arrived on time and checked in the hotel arranged by Davis.

In the evening, Fan Wubing personally arranged a banquet and had dinner with the experts from Hughes.

Hughes's team leader is Maximos, the company's vice president of executives. He is a Jew in his sixties. He has gray hair, gray eyes, and even his beard. He looks a bit like Einstein.

It was completely authentic Chinese food, with the overall red layout, which made the guests in the room feel a very unique atmosphere with a rich traditional Chinese art. Seeing the exquisite and unique dishes made with colors, fragrance and flavor, everyone looked a little excited.

"Oh, although this is not my first time to come to China, there is no doubt that this is definitely the highest standard for me to be entertained!" Maximos raised the high-legged glass in his hand, shook the red wine in the glass, and raised it to greet Fan Wubing, Davis and others.

Fan Wubing drank some red wine and smiled and said to Maximos, "In fact, there are great differences in culture between the East and the West. Westerners like to talk about work when they work and enjoy life when they don't work. We Easterners are used to enjoy life when they work, and talking about work when they eat, especially at the banquet."

Davis was eating a grilled fish. The fragrance made him unable to choose. He heard this and said to Maximos, "The boss's words are always correct!"

When Maximos saw his subordinates who were burying their hardships, he said to Fan Wubing awkwardly, "While the Lord gives us food to resist hunger, he also warned us that gluttony is also a sin."

Fan Wubing laughed and said, "Fortunately, I am a pagan in your eyes! You can open your stomach and have a big meal!"

When Maximos heard Fan Wubing say this, he just shook his head helplessly. However, Davis asked curiously, "Boss, I have never heard of you having any beliefs!"

Fan Wubing shook his head and replied, "How can a person have no faith? It's just that his faith is different! What a terrible thing would it be if a person loses faith and awe?"

Maximos obviously studied this kind of problem more. After hearing Fan Wubing's words, he nodded repeatedly, "That's right! The demon is not the most terrifying. For the demon, it still has its own beliefs, at least it has the same kind that can be expected! And a person who has completely lost his faith is a complete sin, and you cannot predict what kind of crime he will commit!"

"Cheers to all of us!" Fan Wubing immediately raised his glass with tactfulness.

After the dinner, Maximos immediately asked for the initial negotiation with Fan Wubing and others.

"We need a communication satellite that can broadcast satellite TV programs, with a better coverage. It would be even better if we can communicate telephonely at the same time or realize data services." Fan Wubing said to Maximos.

"This is no problem. Our Hughes company's satellite manufacturing technology is first-class." Maximos first asked skeptically after boasting about his company's manufacturing level for a while, "But IMHO, if you want to achieve these businesses, a satellite may not meet the demand target."

"Why?" Fan Wubing said in a daze.

"In fact, we are now working on the final commissioning of the latest communication satellites." Maximos replied cautiously.

Fan Wubing was very curious when he heard this, so he asked in detail and then learned the reason.

In 1987, Australia's Osset Company purchased two commercial communication satellites from Hughes, the United States. This satellite is the latest new generation of high-capacity, large tonnage and long-life development developed by Hughes, and represents the advanced level of today's world communication satellites. This time, Australia's purchase of Australian satellite b1 and b2 from Hughes will further satisfy Australia's television, radio, voice, data, overseas markets, mobile communications (including telephone, telegraph, professional network) and other businesses.

However, with satellites, it is necessary to send the satellite into geosynchronous orbit through rockets so that the satellite can operate normally after it is fixed. It has become a problem to choose which company with launching capabilities to launch the Australian Star into the sky.

Originally, Osset and Hughes were planned to be launched by American companies, but the previous year was regarded as a disaster year for world space. In this year, a big explosion occurred 72 seconds after the US Challenger space shuttle launched, shocking the world. Immediately afterwards, the American Hercules and Delta rockets also crashed one after another, and American space activities were almost paralyzed. At the end of May of the same year, the European Space Agency's Ariana rocket, which had won more than half of the world's satellite launch contracts, failed because the third stage was not ignited in time. The successive failures caused the one-time launch vehicle market to have users queued up to launch satellites.

Given this situation, Ossett and Hughes were a little scratching their heads. Which company should they choose to complete the launch mission?

It was a coincidence that in this year, the China Launch Vehicle Technology Research Institute planned a bold plan to develop a bundled rocket carrying large-tonnage satellites in order to adapt to the new situation of the international satellite market. They drew three principle sketches. Based on the Long March 2 rocket with a high launch success rate, they lengthened the body of the arrow as the core stage, and then tied four liquid rocket boosters to the original first-stage arrow body to form a new two-stage liquid rocket.

This was the famous "Chang Er Bundle" launch vehicle in the international rocket launch market.

After the satellite transaction was completed, Ossett launched a launch bid in Sydney. At that time, four major groups in the world aerospace industry participated in the bid. The United States offered $70 million, France offered $56 million, Japan offered $50 million, and China Great Wall Company only quoted an ultra-low price of $36 million.

"But there is also a problem, that is, when the Chinese bid, the so-called second-bundle rocket did not have a physical object, but only a sketch, so our company is still a little worried about this launch." Maximos said with a frown.

It is normal to worry about this kind of worry. After all, old rocket launchers like the United States and Europe have made mistakes repeatedly. China's Great Wall Company has only entered the national rocket launch market for more than a year. Foreigners are still worried about this kind of long two-bag of rockets that are only stuck on the sketch.

Once it fails, it is not just a satellite that is lost.

In fact, when Fan Wubing heard the name Chang Erbian, he knew it in his heart and remembered the unsuccessful launch. In history, when China Great Wall launched the AoStar for Hughes, it did fail, but it did not cause irreparable consequences. The rocket's automatic emergency shutdown system was launched at the most critical moment, avoiding greater losses. Later, this system received high attention from the International Rocket Launch Company and was imitated.

After Fan Wubing remembered this incident, he knew that this loss could be avoided. At that time, there was a metal residue as thick as a hair on the rocket, which affected the smooth progress of the launch.

So Fan Wubing smiled and said to Maximos, "The long two bundle of rockets is worth looking forward to, but what is the purpose of telling me this?"

Maximos would definitely not say so much nonsense without any target, so Fan Wubing asked him directly.

The old Jewish man sat upright and said to Fan Wubing very seriously, "Mr. Fan, when we were developing AoStar for Ossett, we also had a backup. If you need it, you can launch it before March next year. Of course, the premise is that the Long Second Bundle of Rockets of China's Great Wall Company can be successfully completed."

"Oh?!" When Fan Wubing heard this news, he felt a little overjoyed.

What news is better than this? Think about it! It takes several years for ordinary satellites to be debugged from the beginning of development to production, and finally they need to be debugged. But now, there is a ready-made satellite in front of you. How gratifying is this!

The satellite developed by Hughes for Osset was originally designed to solve Australian television, radio, voice, data, overseas markets, mobile communications (including telephone, telegraph, professional network) and other businesses. It is most appropriate to use it directly for Fan Wubing!

If this is the case, you don’t have to rent other people’s satellite frequency bands. Now, as long as you pay, you can set up your own satellite service company to provide satellite services to the entire Asian region.

"And, there seems to be a little problem with our business with Osset." Maximos ignored the joy on Fan Wubing's face and then said to him, "If possible, you can consider purchasing three communication satellites at one time to form a communication network covering a global scope! Of course, I mean all areas except the north and south poles!"

"Buy three communication satellites at a time?" Fan Wubing poured his body into the sofa, stroked his forehead with his hand, "Is your company's satellite sold?! Three communication satellites! How much does it cost me?! If there is a malfunction after the sky, who should I ask for advice?!"

Communication satellites are different from ordinary scientific research satellites and military satellites. They need to enter the geosynchronous orbit and keep in sync with the ground. Otherwise, there will be no way to find stars through fixed antennas, and naturally there will be no way to perform activities such as television signal broadcasting.

At an altitude of about 36,000 kilometers above the equator, as long as there are three communication satellites, they can cover the communication range of all regions in the world except the two poles. Therefore, the old Jewish man Maximos said he would sell three communication satellites to Fan Wubing, instead of two or four.

The old Jewish man was a little amused and crying after hearing Fan Wubing's answer.

Originally, Australia's Osset Company signed a contract with Hughes for two communication satellites, but the delivery of only one next year will be only one, and the other will take a while later.

However, Hughes was a little impatient and actually got two satellites in advance, and there were two backup satellites. However, the recent international commercial satellite market has been relatively bleak and it is difficult to take action. The company's upper layer is worried about the landing of these three satellites.

Who knew that at this time, Fan Wubing's people actually proposed the idea of ​​buying satellites with Hughes. How could the senior executives of Hughes not be excited? Then, they inquired about Fan Wubing through the Ministry of Defense and found that this was a real rich man, so they began to think about selling all three other satellites except one provided to Osset next year to Fan Wubing.

"In fact, your company has all the control rights of satellite resources. As for after-sales service issues, we can provide them completely! We will properly solve related communication equipment and technical issues in use. All these services are just a little more money. For a big man like you, it is nothing." The old Jewish man made full use of the inherent business talent of the Jews inherited from his blood and tried his best to lobby Fan Wubing.

"I don't need money!" Fan Wubing first affirmed this and then continued, "But you have to make me feel good about the money! Otherwise, what's the point of returning from buying three satellites? Will it be placed at home for a display meeting?"

Of course, this is impossible. If Fan Wubing really had to spend 1.8 billion US dollars to buy three satellites to put them at home, he would not have been laughed to death! You should know that if this kind of thing goes into space, it is a treasure. It is a waste to put it at home!

"The benefits of purchasing three satellites at a time!" The old Jewish man hurriedly explained to Fan Wubing the benefits of doing this, such as having the ability to provide communication services across the world, he can set up a satellite TV company, become a telecommunications service provider, and run global broadcasting business and other things.

Fan Wubing waited for him to talk for a while and asked incisively, "Get happy, give me a wholesale price! Or I'll ask!"

"Wholesale price?" The old Jewish man had never been exposed to such a completely Chinese-style word, and couldn't help but be stunned.

Davis, who had been watching next to him for a long time, explained lazily, "The so-called wholesale price is actually the group purchase price. You will understand, right? Mr. Maximos?"

The old Jewish man nodded and thought to himself that's the case. It seems that he needs to have a good talk on the price.

In the entire commercial satellite industry chain, according to internationally accepted algorithms, the satellite manufacturing cost is about 1.2 billion US dollars per satellite launched on average, the rocket cost is about one-quarter of the satellite cost, about 30 million US dollars, and the launch cost is about one-quarter of the satellite, about 30 million US dollars, while the insurance cost is about one-fifth of the first three items, about 36 million US dollars, which is generally calculated to be about 2.2 billion US dollars. The proportion of revenue between satellite manufacturing, launch and application is roughly 2 to 1 to 7.

In this way, the benefits of satellite applications are still very attractive, and the benefits of satellite manufacturing are also quite considerable. As for satellite launch, it is the least profitable link. In fact, satellite launch is the most prone to problems in the entire commercial satellite industry chain.

"Then, we can give up a total of five million US dollars in profits for three satellites! This is a big concession. Our Hughes company has never had this situation since we started the satellite business!" The old Jewish man, Maximos, looked sore, gritted his teeth and said to Fan Wubing.

"Three satellites have given up only five million US dollars?" Fan Wubing smiled and shook his head, "When we bargained, we cut down 50 million and 50 million!"

The old Jewish man suddenly got a little angry and thought to himself, I know you are a rich man, but you bargained like this when you do something? Bargained for 50 million and 50 million? What are you buying?

Davis saw that the old Jewish man was a little unhappy and knew that he thought Fan Wubing was talking nonsense, so he explained to him, "Mr. Maximos, our boss never tells lies. You should know that our boss's business has never been in the billion-dollar level, just like Cisco now, you always know?"

"Cisco, of course I know!" the old man said immediately, "That's a big company with a market value of more than $40 billion! Industry insiders are unanimously optimistic, or in a few years, they will become the largest listed company in the United States!"

"Our boss is a major shareholder of Cisco!" Davis said to Maximos with a smile.

After hearing Davis' explanation, the old Jewish man Maximos was stunned for a moment, and then cursed in a low voice, "Damn the Ministry of Defense, why didn't they tell me about this situation!"

After understanding this situation, Maximos' confidence in selling three satellites increased a lot, so he thought for a while and said, "If you are willing to replace Cisco's stock, I believe that our senior executives of Hughes will definitely be very happy to sell these three satellites at extremely favorable prices!"

After hearing this, Fan Wubing said with some admiration, "Mr. Maximos, you really know how to do business! He actually had the idea of ​​my stock! But I want to hear that if you use stocks for replacement, what price will your company be willing to trade? Everyone is a cheerful person. If the price you give is fair, you can decide in one sentence!"

Well, you won’t lose money if you do this business! Maximos thought to himself that Cisco’s stock price will soar sooner or later, and it’s nothing if he loses a little now. If he hadn’t met a big buyer Fan Wubing, these three satellites would have to be carried in the warehouse for at least two years, and Cisco’s stock in two years would probably have an increase of more than 50%.

So Maximos finally made a decision after turning a hundred or ten turns in his heart. He raised his head and said to Fan Wubing, "Then, the integer price, a satellite worth 100 million US dollars! It is completely replaced by Cisco's stock! This price is our bottom line! It can no longer fall, otherwise our company's financial statements this year will suffer huge losses! The board of directors will not pass it!"

Fan Wubing looked at Davis and saw him nodding slightly, obviously feeling satisfied with the price. So Fan Wubing pondered for a moment, and then said to the old Jewish man, "Since you have shown such a big concession, I can't make any excessive demands on you, so well! Just this price, a satellite costs 100 million US dollars!"

"Okay! Let's sign this contract now!" When the old Jewish man heard that Fan Wubing agreed to his offer, he immediately jumped up happily and wanted to find champagne to celebrate. His movements were so brisk that it didn't seem like a person in his sixties could do it.
Chapter completed!