Inmarsat wins new mobile satcom services contract with FEMA

Inmarsat Government has secured a new satellite communications contract with the U.S. Federal Emergency Management Agency (FEMA) for the Company's MSS (mobile satellite services.)

The new MSS contract is worth US$3.5 million in total, and will last for up to five years. The initial contract period is for one year. FEMA can choose to extend its agreement by four one-year increments.

Inmarsat Government will tap its entire product and service portfolio to create cost-effective, innovative, and secure end-to-end satcom solutions for FEMA. This includes the Company's Global Xpress service, Inmarsat's new global Ka-band network, which is scheduled to enter service this 2013 and achieve full global service in 2014.

Inmarsat services will allow FEMA support personnel to access reliable, mission-critical communications during disasters. The Company's satellite communications solutions allow first responders to immediately contact other personnel and command and operational centers.

SES provides satellite broadband services to ESA for ARTES initiative

Last week, SES announced that its SES Broadband Services will be providing satellite broadband services to the participants of the ARTES (Advanced Research in Telecommunications Systems) initiative of the European Space Agency (ESA.)

The ESA has set its sights on boosting the competititveness of the European satellite industry. Its ARTES initiative will promote satellite functions and services in aviation, broadcasting, data relay, multimedia and mobile communications, and search and rescue operations. These promotions will encourage European companies to create new satellite broadband applications.

To support this ESA initiative, SES Broadband Services will provide participating companies with preferential rates for its satellite broadband services on two satellites: The Astra-3B platform, which serves Europe and the Middle East, and the Astra-4A satellite, which covers sub-Saharan Africa.

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Value-added services, new satellite drive revenue growth for Eutelsat

Eutelsat reported that its revenues for the first quarter of 2012-2013 have increased by 6.5 percent. Value-added services grew by 43.7 percent, while video applications and capacity added in 2011 and 2012 increased by 9.1 percent. The European fixed satellite services (FSS) operator has earned 314.4 million euros ($406.3 million) so far.

According to Eutelsat, limited capacity in regions of highest demand caused multi-usage to drop by 5.8 percent. The Company responded by acquiring the GE-23 satellite operated by GE-Satellite. Renamed as Eutelsat 172A, the new satellite will expand Eutelsat's coverage of these high-demand areas.

According to Michel de Rosen, CEO of Eutelsat, the FSS operator is now focusing on the November 2012 launch of the Eutelsat 21B satellite, and the December launch of the Eutelsat 70B satellite. Both satellites will significantly increase capacity for markets in the Middle East, Africa, and Asia, where Data Services and Multi-usage remain in high demand.

In the meantime, Eutelsat adjusted its revenue outlook after acquiring Eutelsat 172A. The FSS operator is aiming to generate top-line growth of between 5 and 6 percent for the current fiscal year. By the time June 2015 arrives, it plans to have achieved a three-year compound annual growth of between 6 and 7 percent.

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ViaSat weans off US defense contracts, switches to satellite Internet services

Faced with a “fiscal cliff” that threatens to cut off its main source of revenue -its many lucrative defense contracts with the U.S. government,- ViaSat Inc. is placing its bets on its growing satellite Internet services.

If U.S. lawmakers are unable to agree on a method to make up for the budget deficit, they will implement a series of automatic tax hikes and cuts in government spending in 2013. The "fiscal cliff" will save the government some $600 billion, and a good amount of that will come out of contracts with companies like ViaSat.

It’s an uphill battle for the satellite communications provider. Defense contracts with the U.S. government currently take up 45% of Viasat’s revenue. Worse, company shares have yet to recover from the drubbing they received when ViaSat first launched its Exede Internet-by-satellite service back in January.

Eight months ago, the value of ViaSat’s stock hovered near $50. The company currently trades around $35 a share.

According to Timothy Quillin, an analyst for Stephens, Inc., investors have expressed their disappointment in the slow pace of subscriber growth in ViaSat’s satellite services segment, especially its Exede service.

Still, ViaSat remains positive that it made the right choice in rolling out Exede. According to the Company, it had added 20,000 new subscribers during the first quarter of 2012, and 40 percent of them had switched to the high-speed Exede satellite Internet service.

ViaSat further revealed that its satellite services segment received 31% more orders during the same quarter. Chief Executive Mark Dankberg said that one particular contract during the first quarter was almost equal to the normal order flow.

Mr. Dankberg co-founded ViaSat in 1986. According to him, the home Internet service will continue to contribute more and more revenue during the next few years.

He also announced that ViaSat will trim down its government sales from 45% down to 35% within five years in order to better diversify company revenue. Mr. Dankberg also took care to clarify that the Company’s government segment will not grow smaller. “It will be that it doesn't grow as fast as other parts of our business grow," he explained.

Investors are concerned that ViaSat is taking too much time in its migration. Non-government sales of satellite equipment and services currently take up a quarter of the Company’s sales. This includes all revenue from its Exede Internet-by-satellite service.

SkyVision will provide VPN, satellite services to Broadlink telecom

Telecom / infrastructure company Broadlink signed a contract with SkyVision Networks for the latter to provide Virtual Private Network (VPN) and Internet connectivity services to Broadlink's South African enterprise customers.

SkyVision made the announcement on Aug. 15. Specializing in hybrid connectivity, SkyVision will provide Broadlink with end-to-end business connectivity through the use of VSAT services.

“Broadlink has made great strides in the South African business market," Broadlink Managing Director Mike Brown said. "However, we have seen an increased demand from our customers for communication solutions catering to business sites and branches across our borders."

In response, Broadlink will use SkyVision’s satellite services, local hubs, and teleports to expand the former company's range of terrestrial and wireless communication solutions in the African market.

"By partnering with SkyVision," Director Brown explained, "we can now accommodate their requirements for connectivity solutions across the African continent, allowing us to expand our reach exponentially.”