ASX listed Sky and Space Global has added to its existing customer base after entering into a new commercial contract to sell a portion of its nano-satellite bandwidth to African app developer BeepTool. The company says the deal further signals its potential to generate early stage revenue from their first 3 trial nano-satellites, scheduled for launch in 2017.
Sky and Space Global has secured a new commercial contract to sell some of its future nano-satellite driven telecommunications bandwidth to African app developer BeepTool.
The company says that the pre-commitment by BeepTool to purchase some of its band width ahead of the launch of their first three trial nano-satellites further validates the commercial potential of its offering.
In an update to the market on Thursday, Sky and Space said it had entered into a Letter of Intent with Nigerian based BeepTool to sell bandwidth from its initial three demonstration nano-satellites that are scheduled to be launched this year.
BeepTool own a mobile payments, messaging and voice app that is used by around 800,000 people across Africa.
They are Sky and Space Global’s second pre-committed wholesale customer that will purchase bandwidth from the company’s initial three trial nano-satellites. The first was Sat Space, also an African based business.
Under the terms of the deal, BeepTool will collaborate with Sky and Space Global on a pilot program that will integrate the BeepTool app with the company’s telecommunications software systems. If successful, BeepTool has agreed to purchase all the bandwidth it needs to fill its bandwidth demand from Sky and Space Global.
Sky and Space say there is significant potential upside that could flow from its first foray into the mobile banking and financial services market given its rapidly growing stature in countries like Africa
The BeepTool app, which is now used in more than 50 countries, has been described as Skype, WhatsApp and Viber all rolled into one, with the added functionality of a money transfer service.
Sky and Space are on track to launch their first three trial nano-satellites this year and they have flagged a launch of a full constellation of up to 200 nano-satellites from mid-2018.
Chief Executive Officer Meir Moalem said: “We are pleased to have secured further early stage commercialisation via this agreement. BeepTool has a strong and growing presence across the African continent and we look forward to working together to bring communications coverage to millions of people across the African continent."
“This represents a substantial opportunity for our company as these services will require the affordable communications coverage that our nano-satellites will provide.”
The deal with BeepTool is another step in the right direction for Sky and Space Global who’s share price has quadrupled since it was back door listed last year.
Nano-satellites are miniature satellites that are small enough to fit in the palm of your hand and yet they are powerful enough when launched in a constellation to provide voice, data and messaging services to remote areas that are not covered or not well covered by the cellular players.
According to the company they are considerably easier and cheaper to launch into space than the more traditional, very large satellites.