NewSat Partnered with AP Kypros Satellite to Expand Orbital Slots
With new orbital slots and higher frequency bands, NewSat can earn $250 million per annum in perpetuity.
- (1888PressRelease) March 23, 2012 - Australian satellite carrier NewSat Limited (ASX: NWT) has entered into a partnership agreement with AP Kypros Satellite Limited for the expansion of existing orbital slots and frequency bands. The deal further solidifies the relationship between the two satellite service providers. The agreement is currently awaiting regulatory approval.
The agreement for the eighth orbital slot includes five more orbital filings and rights to filings in specific regions in the future as they become available. With more orbital slots and expansion of satellite frequencies in existing seven orbital slots, more satellites can be deployed.
Newsat will pay in cash and stocks in two installments. The first installment will be paid upon the execution of the agreement. Once the government approves the said commercial agreement, the second installment will be paid. As of now, both parties keep the financial terms of the contract private.
NewSat CEO Adrian Ballintine was very enthusiastic about the deal, citing its impact on the NewSat's competitiveness in the global economy. With expanded frequency allocations , the company can build more satellites with more stablenable construction of more and larger satellites in its current slots. The new slot is reportedly found in an ideal location for serving the Middle East region, which is one of the fast highest satellite usage growth rate. Once new satellites are launched , additional revenues are estimated to reach more than $250 million per annum in perpetuity.
The expansion of NewSat's frequencies and orbital slots is paving the way for the launching of its first independently operated Ka-band satellite. The largest independent satellite communications provider now boasts of $526 million in sales pre-commitments. The company hopes to raise $20 million in equity funds.
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