ASX listed Sky and Space Global have signed their first binding commercial contract with wholesale customer, Sat-Space Africa.
The deal moves the Perth-listed company a step closer to commercialising its potentially game changing telecommunications miniature satellites that were blasted into space last month.
In a market update on Thursday, Sky and Space Global said the agreement followed an initial letter that was signed in 2016 with Sat-Space Africa – the ASX junior’s first wholesale operator.
According to management, the new contract defines the full commercial terms for purchasing services and includes Sat-Space Africa’s role and obligations.
The binding commercial contract provides further confidence in Sky and Space’s “nano-satellites”, their technical capability and commercial viability.
Chief Executive Officer Meir Moalem said: “We’re very glad to be working with Sat-Space Africa, a company which shares our values and aims to bring reliable connectivity solutions.”
“The commercial contract marks a step forward in our partnership and for us as a business with confidence in our constellation continuing to strengthen. We look forward to the commercial demonstrations of the 3 Diamonds in the coming weeks.”
Once the full Sky and Space Global Equatorial Constellation of around 200 units is rolled out by 2020, potential revenues from customers via Sat-Space Africa is expected to range between US$10 million to US$35 million annually, according to management.
The announcement comes after Sky and Space this week said it had successfully completed orbital testing of its first 3 satellites.
The first 3 units are currently progressing to the commercial operations testing phase, which includes trial facilitation of phone calls, instant messaging and data transfer applications.
The deal with Sat-Space Africa is an important step on the way to demonstrating the commercial viability of Sky and Space’s offering based on their nano-satellites, which are smaller, cheaper and easier to launch than conventional satellites.
The company wants to use nano-satellites to provide telecommunication solutions to millions of people in remote parts of the planet and for the aviation and shipping industries.
