Satellite maker Sky and Space Global is moving into China and its shares are soaring
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Special report: Investors piled into Sky and Space Global on Tuesday after the nano satellite maker announced a move into China.
The shares jumped almost 17 per cent to 9.8c. The stock saw its heaviest trading day this year, with 30 million shares changing hands across the ASX and Chi-X exchanges.
Until now Sky and Space (ASX:SAS) has been focused on launching a constellation of 200 nano-satellites into equatorial orbit to provide affordable voice, messaging and Internet of Things applications to the region.
It’s an important venture because a third of the world’s population is still without 3G mobile data connectivity — including Africa, South East Asia and Latin America.
Now SAS is extending its reach into China.
Under a new deal, SAS will explore incorporating its Internet of Things and communication services into Chinese satellite communications provider Commsat’s network.
The Internet of Things (or IoT) refers to technology that allows devices such as cars, light switches or heart monitors to swap information over the Internet.
This week IT researcher IDC predicted IoT spending would grow at an annual rate of 13.6 per cent to reach $US1.2 trillion globally by 2022.
In China, the IoT market is growing at an ever faster rate of about 20 per cent and is expected to reach pass $US230 billion by 2020.
“The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments,” IDC group vice president Carrie MacGillivray said.
Beijing-based Commsat is developing a Low Earth Orbit satellite constellation to provide IoT services to consumers and businesses in China.
SAS’s technology would be used to significantly advance and enhance the current Commsat network offering.
The two may also jointly provide IoT and narrowband communication services in China.
This special report is brought to you by Sky and Space Global.
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