The ‘Initial Nano-satellite Phase’, the Three Diamonds, has new customer for Sky and Space Global through Sat-Space Africa.
Sky and Space Global Ltd, an ASX-listed company, is a brand new satellite company working in the ultra advanced nano satellite space, as we discovered in my great video interview with the company’s chief executive, Meir Moaelm, and chief technology officer Meidad Pariente, which you can read about and watch here.
The company is now advising that its "first wholesale customer, Sat-Space Africa (SSA) has secured new commercial contracts to sell the company’s nano-satellite communications bandwidth to end user customers", with these customers "in addition to its own existing customer base".
In March 2016, the company says it "entered into a binding letter of intent with Sat-Space Africa, which agreed to purchase all the available communication bandwidth that the company can provide from its initial 3 Diamonds nano-satellite demonstration platform".
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And so who is Sat-Space Africa?
It is a Pan-African communications company that has existing operations and infrastructure in 27 African countries.
Sat-Space Africa and Sky and Space Global are "currently negotiating the progression of its binding letter of intent to a full binding, commercial contract".
The company says that "securing new end user customers from key new industry targets like mineral (mining) and transportation tracking through SSA delivers potential early stage revenue generation for the Company’s nano-satellites and significantly de-risks Sky and Space Global’s offering".
Sat–Space Africa’s forecast of revenue potential from these new customers alone for the 3 Diamonds demonstration nano-satellites is "estimated at approximately USD$500,000 per annum whilst only utilising a small portion of the capacity produced at the 3 Diamond phase".
We’re also told that "there is the potential for these revenues to grow to circa USD$2 million per annum once the company’s equatorial constellation is fully operational".
The company proudly boasts that "the securing of these new industry customers by Sat-Space Africa, in addition to their existing customer base, and the revenue generation from only the 3 Diamonds, demonstrates the significant revenue potential of the full Equatorial constellation".
As we know, if you read my previous article on Sky and Space, or knew about it already, the company "intends to launch an Equatorial constellation of up to 200 nano-satellites commencing from mid-2018. The quantum of bandwidth created from the full constellation of nano-satellites has the potential to generate revenues of circa USD$500 million revenue per annum".
The initial service agreements are with Sat-Space Africa and Africa-based companies requiring communication and tracking bandwidth in the mineral, animal, transportation data and tracking industries.
Moalem said: “We are pleased to inform our shareholders that our 3 Diamonds demonstration nano-satellites are already securing commercial value. This is the result of hard work by our team and by our strategic customer, Sat-Space Africa.
“Together, we will strive to further increase our footprint, add customers and services and expand into new markets including Asia and Central America.”
Sat-Space Africa's managing director Shimri Lotan said: “With the new solution from Sky and Space Global we have been able to expand our potential markets and secure revenues, once the service is commercial.
“We consider Sky and Space Global a strategic partner and will keep working with them to secure more agreements in the narrow-band communications market.”