Spacecom Satellite Communications Ltd. (TASE:SCC) announced today that it has signed an agreement to acquire a new satellite that will be called Amos 8. The Israeli company is buying the satellite from US company Loral Space & Communications Inc., which to date has manufactured 270 satellites.
Under the terms of the agreement, Loral will deliver the satellite 27 months after payment of a deposit by Spacecom. Loral will also provide support services for the launch and operation of the satellite during the lifetime of its orbit. The cost of the deal to Spacecom will be $112 million.
The new satellite will replace Amos 7 and provide communications satellite services to the Middle East, Europe and Africa. According to the agreement the new satellite will operate for at least 15 years.
Elon Musk's SpaceX will launch Amos 8 despite the explosion of its launcher, which destroyed Amos 6 shortly before it was due to be sent into orbit in September 2016.
Spacecom said that it had approached several companies about building Amos 8 including Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1), which in the past delivered four satellites to Spacecom costing a total of NIS 2 billion. Spacecom's custom had in fact enabled IAI to develop satellite manufacturing. However, on this occasion, Spacecom CEO David Pollak said that his company had not chosen IAI, although it would have been happy to do so, but its price was uncompetitive and the timetable offered would imperil being able to replace Amos 7 on time.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2018
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