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Sky and Space Global Limited (ASX:SAS) is a NewSpace company ready to offer affordable communications through innovative Nano-satellites technology. The company will target the telecom market(B2B) with the usage of sophisticated Nano-satellite design and proprietary software to enable significantly cheaper narrow-band communication services. SAS has launched three satellites into orbit which is an evidence of concept for the management software and network. Sky and Space Global is the first company in the world to build and operate a commercial telecom network via Nano-satellites. Their primary focus is on the equatorial/tropical region, to have operational coverage by 2019, and complete coverage by 2020.
Till now, 30 customers have already signed agreements with SAS which is expected to yield annualized revenues of $10-$12M AUD from 1st batch of Pearls (Q4 2019 onwards). The previously announced signed contracts are expected to have a value of $40-$65M USD (over five years), and there is a strong pipeline of customers for 2019. SAS is led by an experienced team comprised of satcom and telecom industry leaders.
With its price disruptive first-mover technology, SAS is all set to revolutionize the satellite communications sector. SAS has been focussed on targeting large and growing addressable market size which is estimated to be $5.7 billion in 2020, rising to $6.9 billion by 2024. They are on schedule for the launch of the first batch in Mid-2019 with the very experienced SAS team working on schedule alongside partner, Gomspace, to complete construction of Nano-sats for launch with Virgin Orbit in Mid- 2019. GomSpace is manufacturing the SAS constellation and is a construction partner for the â3 Diamondsâ, GomSpace (GOMX.ST), has been selected to construct and deliver the full SAS constellation.
The Go-to-market strategy of SAS is selling narrow-band connectivity to a variety of companies, for example: Service Resellers (B2B2C) selling connectivity to telecom providers which is then re-sold to their own customers, Service integrators (B2B) selling connectivity to other enterprises which is then integrated into their own offering and Direct (B2B) selling connectivity services direct to corporates.
The Rollout of services is staged as the number of Nano-satellites increases. Stage 1 is scheduled after the launch of the first batch M2M/IOT and asset tracking services will be provided as well as store and forward messaging services. Stage 2 is scheduled after the launch of the second batch more advanced messaging services will be delivered. Stage 3 is scheduled after the launches of batches three and four, IoT services will be available around the clock every 15 minutes, making SAS the most reliable IoT service provider on the market. Stage 4 is after the full constellation is launched where they will provide real-time 24/7 voice, messaging, asset tracking, data, and M2M/IOT services.
The Space sector in 2019 needs cost reductions due to reusable rockets and Mass-production of satellites. The demand for data is increasing, particularly for IoT and M2M services.
The shares of SAS closed the dayâs session at A$0.056, up by 1.818% or 0.001 points on 22nd January 2019.
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