Sky & Space taps multi-billion dollar Chinese market
ASX listed satellite telco Sky and Space Global has signed a binding memorandum of understanding with a Chinese satellite communications provider that could allow the company to tap into China’s growing multi-billion dollar “internet of things” market.
Under the agreement, the two companies will test and explore the possibility of incorporating Sky and Space’s miniature satellite based communication services into Beijing Commsat Technology Development Co., Ltd’s network.
The parties will also examine how Sky and Space’s nano-satellite technology could be incorporated into and used to advance and enhance Commsat’s current network offering.
“Internet of things” refers to a growing consumer need to connect everyday “things” to the internet, all of which require telecommunications services of some description.
China’s internet of things market has grown at an annual rate of over 20% from 2013 to 2017 and is expected to be worth more than USD$231.4bn by 2020.
The world’s most populous country also has favourable Government policies with a current goal to connect 600 million devices and 1.5 million base stations to narrowband internet of things networks by the end of 2020.
Commsat is a Beijing based satellite communications company that is developing a Low Earth Orbit constellation to provide internet of things services to users and corporations mainly in the Chinese geographical region.
It will collaborate with customers across many sectors, including heavy machinery, containers, logistics, intelligent hubs and wild animals tracing.
Sky and Space Global managing director Meir Moalem said: “We have always believed that China will be an important source of demand for our technology and have identified Commsat, a rising star in the Chinese aerospace community, as a partner to embark on these efforts.
“This important collaboration will allow us to further expand and promote our business in that part of the world, while assisting Commsat to deliver M2M and IoT services in remote locations and to meet growing demand in China.”
Commsat CEO Xie Tao said: “We welcome the opportunity to collaborate with Sky and Space Global. We have long been impressed by their ground-breaking technology, the innovative business model and the speedy progress of their business plan.
We at Commsat believe that we can leverage SAS’ capabilities as a pioneer in nano-satellite and communications technologies, with our own extensive connections in China and existing customer engagements for Machine-to-Machine and Internet-of-Things services.”
Sky and Space Global (SAS)
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