Sky & Space inks 1st aviation deal for mini-satellites
Aspiring ASX listed telco Sky and Space Global will explore commercial opportunities with Israel-based International Air Traffic Automation Systems after signing a landmark deal with the leading aviation solutions and service provider.
In a market update this week, Sky and Space said it has inked a binding Memorandum of Understanding with IATAS to expand and develop opportunities related to the integration of the company’s nano-satellite network across IATAS’ aviation platform.
The deal represents the company’s first deal in the commercial aviation services sector, an area that company management identified early on as a major opportunity for the Perth listed technology player.
It also serves as an expression of interest for the two firms to collaborate in pursuing future commercial opportunities.
Discussions are now underway to finalise a deal that will ultimately see Sky and Space’s nano-satellites integrated into IATAS’ service platform. The platform includes real-time solutions for air traffic control surveillance, interactive airport mapping for pilots, remote tower operations, automated air traffic control systems, digital black-boxes and anti-collision software.
Sky and Space Global Managing Director Meir Moalem said: “The agreement with IATAS is yet another example of the innovation and disruption SAS brings to the market. We are delighted to have the opportunity to work with IATAS and provide our services to the commercial aviation communication services sector.”
The company plans to start the roll out of its full constellation of 200 nano-satellites into space from next year and it said the recent deal would see IATAS conduct a demonstration of the way it has incorporated nano-satellites into a commercial aeroplane and as an air navigation service provider.
Once the demonstration is underway, Sky and Space management said it was confident it would be able to leverage further commercial relationships within the global aviation sector.
IATAS CEO Ori Shloosh added: “IATAS is excited to collaborate with SAS and be able to offer sustainable and cost-effective solutions and services to the aviation industry.
“This multi-billion-dollar market is currently underserved and there is a great potential to generate high revenues as a result of regulatory mandates being implemented in the next few years.
“In the coming months, IATAS and SAS will engage with end user clients such as airlines, air navigation service providers (ANSP) and airports to demonstrate and roll-out the new technologies and capabilities.”
The latest update from Sky and Space comes after a recent announcement that it has successfully completed testing of its technology with South American mobile satellite service provider, Globalsat Group.
That milestone has paved the way for Sky and Space to strike a deal between the two companies that will see Globalsat use bandwidth from Sky and Space’s proposed full equatorial constellation of miniature satellites once they are deployed into orbit after 2020.
World’s first spectrum monitoring – June 2018
The 3 Diamonds nano-satellite network has successfully completed the world’s first Spectrum Monitoring* operation using nano-satellites. The 3 Diamonds were used to investigate and identify a network interference operation that was occurring within Europe on a frequency owned by a leading geo-stationary satellite communications operator.
Using its on-board software defined radio capabilities, the 3 Diamonds were able to detect and identify the source of the interference providing valuable information for the satellite operator to remediate the issue.
*Spectrum Monitoring is the detection and location of radio frequencies from sources on the ground and is implemented by governments and satellite operators globally as a means of mapping radiofrequency sources, network security/ stabilisation.
See full announcement: https://www.asx.com.au/asxpdf/20180607/pdf/43vlycpmzqrlx6.pdf
World’s first financial transaction – October 2017
SAS successfully performed the world’s first financial transaction using nanosatellites in conjunction with the mobile payments start-up BeepTool Communications & Integrated Services Ltd. The transactions were made from one phone to another using the 3 Diamonds network.
The tests demonstrated that financial transactions could be made from one phone to another using bandwidth from Sky and Space Global’s first three nanosatellites, the 3 Diamonds. This creates huge potential for improving commerce in rural areas by using secure and safe peerto-peer banking. For testing such as this, the Company has developed a dedicated Android application called ”Chatellite”, which is used to transfer files, perform phone calls, text messages and voice recordings.
See full announcement: https://www.asx.com.au/asxpdf/20171026/pdf/43nlmvfp1nb9w3.pdf
World’s first phone call – September 2017
SAS completed a world first for the aerospace, satellite and telecommunications industries, as the first ever voice call has been successfully conducted using its 3 Diamonds nano-satellite technology, a standard smartphone and SAS proprietary hardware and application.
Along with enabling a voice call, the 3 Diamonds nano-satellites, which Sky and Space Global launched into space in late June 2017, have also demonstrated their capability to facilitate the exchange of text messages, voice recordings and images between different users. As part of this process, SAS has successfully tested the “store and forward” capability of its technology, which includes sending a message to the satellite, keeping it in satellite memory and downloading it to a receiver.
See full announcement: https://www.asx.com.au/asxpdf/20170905/pdf/43m2cyg9wd7qy8.pdf
Sky and Space Global - Company Profile
- Sky and Space Global (SAS) is an innovative and disruptive NewSpace company that has recently celebrated two years since listing on the ASX. It is the first company to utilize nano-satellites to build a proprietary communications network in the equatorial belt which will deliver affordable communications services for businesses operating in this region and for people living in emerging markets.
- The Company successfully launched into space its first three nanosatellites, the 3 Diamonds, in June 2017, proving that its technology and business model work.
- Following the successful launch, Sky and Space Global is planning to launch a constellation of 200 nanosatellites in phases to complete in 2020, providing full coverage of the equatorial areas of South America, Central Africa, and Southeast Asia.
- The satellites will be controlled by a proprietary network management software platform enabling the constellation to automatically manage, monitor, and control its motions in orbit.
- This NewSpace technology will allow telecom operators, enterprises and communication service providers to deliver affordable connectivity services to remote locations that do not have access to reliable and affordable connectivity services.
- The Company’s ultimate mission is to provide affordable communications services to Anyone, Anywhere, Anytime.
Why invest in Sky and Space Global answered by Meir, Managing Director and CEO
Where do you see the Company being positioned in 5 years’ time?
We expect to be a global leader in satellite narrowband communication services generating high revenue and creating value for shareholders.
We intend on being in a position where we can reward our supportive shareholders.
How big is your potential market?
The SAS constellation will cover the Equatorial region between 15 Degrees north and south and we will provide a round the clock service.
In the geographies we are targeting there are around 3 billion people and the majority of them are living in places where there is either none or very limited communication infrastructure. Moreover, residents, government, businesses and service providers are demanding greater access to connectivity services.
What is your growth strategy?
Our growth strategy is very simple: as we deploy additional satellites, we expand our services capacity, enabling us to serve more customers and generating more revenues.
We go one further than this. Once the constellation is in orbit we will continue to upgrade the satellites every year. In doing so we are always ahead of the game and the market as we will always have state-of-the-art technology.
What can we expect from the Company in the near term? 6 – 9 months?
The next few months are important for us as many of our projects will complete;
Technical track: Finalizing the design of the Pearls, this is already underway and we expect it to complete shortly, then we begin the assembly. Once that is complete we have to test and retest the system using advanced tools and beginning putting ground infrastructure into place.
Commercial track: We are at final stages of negotiations for agreements with more customers. We are actively trying to increase our customer base as a means of generating future revenues.
Financial track: Securing the funding for the ongoing operation and development of our complete 200 satellite constellation
What we’ve learnt over the last two years is that, in the technologically developing world, the need for connectivity and communication services is at all time high and continues to rapidly grow especially within the M2M and IoT service space
How long until you expect to see material revenues?
In line with our guidance since listing, we expect significant revenues to start in 2019, ramping up with each additional launch and the full deployment by the end of the decade.