Telco Carrier to Use NewSat's K-and-C Band Satellite
NewSat added $US67 million in its contract sales for its upcoming Jabiru-1 satellite.
- (1888PressRelease) December 21, 2011 - Jabiru-1 funding gets another boost this month as NewSat earned $US67 million in contract sales. An unnamed telecommunications provider signed a procurement deal relating to Ka band capacity of Jabiru-1 satellite. With the new contract, the Australian satellite carrier is about to complete the $400 million funding needed to build and launch its first independently owned geostationary satellite. Total contract sales for Jabiru-1 now stands at $US346 million. Analysts see NewSat nearing the final stage of initial planning for the construction of Jabiru-1. The recent contract was confirmed following the announcement of a separate deal with Lockheed Martin for the construction of the said satellite.
Jabiru-1 will connect teleports, hubs, terminals, and wireless systems via Ka, Ku and C bands. The geostationary satellite is expected to be operational by 2014. NewSat is poised to grow its Ka-band and C-band market coverage in the succeeding years, providing high-speed Internet and wireless data transmission services across major markets in Asia, Africa and the Middle East.
NewSat, a 100% Australian owned corporation, is tapping on bank funding to meet 75% of the capital cost for Jabiru-1. Stock price bounced 5% higher early this December, immediately after NewSat's announcement of the Lockheed Martin contract. Analysts hope that with the marginal price increase in stock price, it would be easier for NewSat to complete the needed funds for Jabiru-1 construction.
Around $279 million in previous contract sales came from international telecommunications carriers and IT companies such as 3A Technology, TrustComm and Quicklink Communications. TrustComm, a US broadband carrier, looks forward to expanding its operations in Iraq, Afghanistan and other regions in the Middle East. The company signed a $105 million deal with NewSat. 3A Technology, a data management firm, signed a bigger order, $134 million, to better serve its private and public clientele in Afghanistan and Pakistan. In preparation for improving its telecommunications capacity in Africa and the Middle East, Quicklink Communications, a telecom and IT firm based in United Arab Emirates, also signed a $40 million contract with NewSat.
The Jabiru fleet will consist of five geostationary satellites. Jabiru-1 will send Ka, Ku and C band beams from geostationary orbit, serving key markets in Australia, the Middle East, South-East Asia and sections of Africa. Following the launching of Jabiru-1, Jabiru 2, 3, 4 and 5 will target the remaining parts of the globle.
CEO Allan Ballintine said that the Jabiru-1 service will signal Australia's entry into global satellite communications market. Along with Ku and C band services, the company is marketing its high-frequency Ka-band as a solution to enterprise-grade connectivity.
Citing commercial and competitive reasons, NewSat refused to disclose the name of its new customer.