ASX listed Sky and Space Global has signed a landmark distribution agreement with Pan-American satellite tele-communications consortium, Globalsat Group, for the provision of connectivity services using its constellation of 200 miniature satellites, with the first batch expected to be blasted into space by mid 2019.
Significantly, revenues from this contract will flow immediately upon successful completion of in orbit testing and operational optimisation of the first batch, which is expected within 10 weeks from launch date.
Under the agreement, GlobalSat will distribute, sell, market and promote Sky and Space’s narrow-band text, talk and internet connectivity solutions and respective products to its customers, affiliates, resellers, subscribers and end users within Latin America.
This also includes the provision of machine to machine and internet of things connectivity services.
The Latin American market consists of 64 million people with limited or no access to mobile telecommunications services.
Sky and Space said this would conservatively bring in USD$5 million for the first two years with potential to expand the service offering to GlobalSat on further deployment of the full constellation during 2019-20.
Sky and Space Managing Director Meir Moalem said: “We are pleased to have finally secured a definitive supply agreement with GlobalSat. This marks a huge milestone achieved for us on the pathway to commercialising our technology.”
Sky and Space has been busy building its network of potential partners with the company reaching MoUs with Brazilian telecom providers Inovsat Telecom and AltaRede Corporation earlier this month.
The company has also reached binding MoUs with globally focussed “internet of things” engineering firm Penteon, Indian technology services company Unizen Technologies, Jamaica’s Surge Telecom, Brazilian satellite telecommunications solutions company Briskcom and Canadian data acquisition company SkyX in October.
Sky and Space Global is clearly ready to commercialise the minute its miniature satellites start orbiting the earth and the sheer weight of numbers of organizations that have jumped on this fast moving train as a partner is telling of the company’s technology.