Satellite Networks

Spacecom signs Amos 5 satellite deal for Africa

An African customer wishing to remain private has ordered an Amos 5 satellite from Spacecom Satellite Communications Ltd. This satellite is due for launch in mid-2011; for the time being an Amos 5i will fulfill the customer’s communications needs...

Spacecom Satellite Communications, which operates Amos communications satellites, has signed an agreement to provide satellite communications services to Africa via the Amos 5i satellite. The satellite is scheduled for launch and to begin operations in the first quarter of 2010. It will serve until the Amos 5 satellite is launched in mid-2011.

 Spacecom purchased the exclusive use rights to the Amos 5i satellite in September. The company estimates revenue from the Amos 5i at US$6.3 million, until the Amos 5 begins service.

The customer, whom Spacecom did not name, has the right to notify Spacecom by June 15, 2010 if it wishes to use only two-thirds of the Amos 5i's services, which will thereby reduce Spacecom's revenue from the satellite by one-third. The company also has the right to expand the services, up to a maximum value of US$7.6 million.

The Amos 5i communications satellite will provide Pan-African C-band and regional Ku-band coverage from Spacecom’s new orbital location at the new orbital slot at 17°E, beginning in January 2010. It will also enable Spacecom to provide a range of satcom services, including VSAT communications and broadband Internet, rural telephony, data trunking, cellular backhaul, Direct-To-Home (DTH) TV, and video distribution.

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