Amos communications satellites operator Spacecom Satellite Communications Ltd. (TASE:SCC) 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 $6.3 million, until the Amos 5 begins service.
The customer, who Spacecom did not name, has the right to notify the Spacecom by June 15, 2010, if it wishes to use only two-thirds of the Amos 5i's services, which will 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 $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. The Amos 5i will 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.
Shaul Elovitch's Eurocom Group owns 56.88% of Spacecom, and Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) owns 16.44%. Spacecom's share fell 0.3% by midday to NIS 55.45.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2009
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