Sky and Space Global signs major distribution deal tied to its Pearls
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Special report: International satellite company Sky and Space Global (ASX:SAS) has signed a major distribution deal for connectivity services from its Pearl constellation of nano-satellites.
The deal is a strategic distribution agreement with Globalsat Group, the first Pan-American Mobile Satellite Service (MSS) consortium and a leading provider of voice, data, machine to machine (M2M), Internet of Things (IoT), software, and hardware development.
It is for the provision of SAS’ connectivity services including M2M and IoT services for Latin America from the Pearls.
The Pearls are SAS’ state of the art, next generation nano-satellites that are a key plank in the company’s plan to provide affordable communication coverage and services to anyone, anywhere, anytime with relatively low maintenance costs.
The first batch is due to be launched in mid-2019 and recently passed a critical design review.
Globalsat chief Alberto Palacios said his company saw plenty of potential in the Pearls.
“We are excited to be moving forward with Sky and Space Global and believe that we have the opportunity to significantly improve our service offering with SAS’ nano-satellite technology on board,” he said.
Meir Moalem, chief of Sky and Space, said the company had been working hard for months.
“We are pleased to have finally secured a definitive supply agreement with GlobalSat,” he said.
“This marks a huge milestone achieved for us on the pathway to commercialising our technology. We have been working very closely with GlobalSat for a while now and look forward to seeing how this agreement unfolds.”
There are an estimated 64 million people in Latin America currently without reliable and affordable mobile connectivity, accounting for 10% of the total population and representing strong commercial growth opportunities for SAS.
Among those is substantial revenue, with a conservative estimate of US$5 million for the first 2 years, with significant potential to expand the service offering to GlobalSat from the SAS network on further deployment of the full constellation during 2019 and 2020.
Revenue will commence upon successful completion of in-orbit testing and operational optimisation of the first batch of Pearls, expected to be completed within 10 weeks from successful launch.
Sky and Space Global is a Stockhead advertiser.