ASX listed Sky & Space Global have progressed the commercialisation of their game changing telecommunications “nano-satellites” by signing their first binding commercial contract with a wholesale customer, Sat-Space Africa. The contract provides confidence in Sky and Space’s nano-satellites and their technical capability as the company works to roll out up to 200 of the miniature orbital devices by 2020.
ASX listed Sky and Space Global have signed their first binding commercial contract with wholesale customer, Sat-Space Africa.
The deal moves the Perth-listed company a step closer to commercialising its potentially game changing telecommunications miniature satellites that were blasted into space last month.
In a market update on Thursday, Sky and Space Global said the agreement followed an initial letter that was signed in 2016 with Sat-Space Africa – the ASX junior’s first wholesale operator.
According to management, the new contract defines the full commercial terms for purchasing services and includes Sat-Space Africa’s role and obligations.
The binding commercial contract provides further confidence in Sky and Space’s “nano-satellites”, their technical capability and commercial viability.
Chief Executive Officer Meir Moalem said: “We’re very glad to be working with Sat-Space Africa, a company which shares our values and aims to bring reliable connectivity solutions.”
“The commercial contract marks a step forward in our partnership and for us as a business with confidence in our constellation continuing to strengthen. We look forward to the commercial demonstrations of the 3 Diamonds in the coming weeks.”
Once the full Sky and Space Global Equatorial Constellation of around 200 units is rolled out by 2020, potential revenues from customers via Sat-Space Africa is expected to range between US$10 million to US$35 million annually, according to management.
The announcement comes after Sky and Space this week said it had successfully completed orbital testing of its first 3 satellites.
The first 3 units are currently progressing to the commercial operations testing phase, which includes trial facilitation of phone calls, instant messaging and data transfer applications.
The deal with Sat-Space Africa is an important step on the way to demonstrating the commercial viability of Sky and Space’s offering based on their nano-satellites, which are smaller, cheaper and easier to launch than conventional satellites.
The company wants to use nano-satellites to provide telecommunication solutions to millions of people in remote parts of the planet and for the aviation and shipping industries.