Spacecom Satellite Communications Ltd. (TASE:SCC) today announced that its Amos 5 communications satellite will begin commercial operations tomorrow, after reaching geosynchronous orbit.
Spacecom reached a deal with the satellite's manufacturer, Russian Information Satellite Systems (ISI), over fines for the late delivery to deduct $13.5 million from the Amos 5's $200 million cost.
The Amos 5 was finally launched in mid-December after lengthy delays. The Amos 5 has a lifespan is 15 years, meaning Spacecom has also reserved this spot for the satellite that will replace Amos 5. Amos 5 will cover Africa, the Middle East, and Europe, and is Spacecom's first satellite that was not built by Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1), a former Spacecom shareholder.
Spacecom is controlled by Shaul Elovitch's Eurocom Group. Spacecom's share price was unchanged in early trading on the TASE today at NIS 69.02, giving a market cap of NIS 1.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2012
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