Taiwan's leading telecom operator Chunghwa Telecom Co. said Thursday it has agreed to build a second satellite with Singapore Telecommunication Ltd.

The new satellite will replace the ST-1, which the two companies launched in 1998 at a cost of 240 million US dollars, and which is due for replacement in 2011. It will launch in late 2010, Chunghwa Telecom said in a statement.

Chunghwa Telecom will hold a 38 percent stake in the joint venture set up to build the new satellite, the company said, without specifying the investment value. SingTel will control the remaining 62 percent.

The two companies agreed to build the ST-2 to continue servicing existing customers and to facilitate expansion into international telecommunications markets.

The new satellite will have a life cycle of 15 years and a higher transmitting power than its predecessor. Its expanded service coverage will include Asia, India and the Middle East.