Satellite company, NewSat (ASX: NWT), has signed a deal with Asian satellite operator, MEASAT Satellite Systems Sdn. Bhd. (MEASAT), to carry out a strategic satellite partnership.
The deal means that MEASAT will have access to multiple transponders covering South Asia and South-East Asia for the 15-year lifespan of the Jabiru-1 satellite.
The capacity leased on Jabiru-1, worth a minimum of $US180 million, will provide back-up services to MEASAT's customer base.
NewSat founder and CEO, Adrian Ballintine, is looking forward to having MEASAT on board the Jabiru-1 satellite, and views the decision as “strategically important” to NewSat because of MEASAT’s leading role in the Asia Pacific satellite industry.
“We are very pleased to be working with MEASAT in bringing this strategic capability to Asia to assist their customers with expansion and protection of their existing services,” he said.
According to Ballintine, the deal with MEASAT follows a number of recently signed large contracts for capacity on the satellite.
“NewSat has now assembled cornerstone contracts totalling $US526 million to underpin the export credit agency backed debt financing, to build and launch the satellite, further reinforcing NewSat’s vision of becoming a satellite operator,” he said.
The agreement is expected to be finalised over the next two weeks after the Jabiru-1 technical specifications are completed, as well as the execution of a lease agreement with MEASAT to acquire capacity on the Jabiru-2 satellite.