Intelsat and OneWeb partnership to result in the first and only fully
global, pole-to-pole high throughput satellite broadband network
Investment features a commercial alliance to exclusively distribute
to certain vertical markets
LUXEMBOURG & LONDON--(BUSINESS WIRE)--Jun. 25, 2015--
Intelsat S.A. (NYSE: I), the world’s leading provider of satellite
services, today announced that it has entered into a commercial
agreement with OneWeb, the venture planning to build, deploy and operate
a low earth orbit (“LEO”) Ku-band satellite constellation. Under the
agreement, Intelsat will partner with OneWeb to use OneWeb’s LEO
platform, once established, to complement Intelsat’s geostationary orbit
(“GEO”) satellite services, resulting in the first and only fully
global, pole-to-pole high throughput satellite system.
Complementing their commercial agreement, Intelsat announced that it
will make a minority share investment of $25 million in OneWeb. The
companies will also collaborate to develop hybrid LEO/GEO end-user
access terminals, furthering Intelsat’s vision to lower the cost and
accessibility of satellite-based broadband and unlock new markets for
satellite broadband.
“As the world’s first and largest provider of commercial satellite
services, Intelsat believes that the opportunity for space-based
communications is at a new inflection point, especially as broadband
connectivity has become an essential input to economic growth for
individuals, businesses and communities,” said Intelsat CEO, Stephen
Spengler. “In this context, we are accessing new technologies and
leveraging sector innovations to the benefit of our customers and our
network.
“Through this partnership with OneWeb, we will further differentiate our
own GEO infrastructure, including our next generation Intelsat EpicNG®
high performance satellites that will begin to launch in the first
quarter of 2016,” Spengler continued. “By complementing our GEO services
with LEO services, we will be able to provide connectivity over the
Earth’s poles and in urban canyons, coverage that is important for
certain mobility applications, including automotive services. In
collaborating on Ku-band access hardware, we will develop technologies
with additional scale that will simplify access, reduce costs and open
new addressable markets.”
“Intelsat’s endorsement of our technology and solution is key to driving
our venture to the next phase of development. Our mission is to enable
affordable Internet access for everyone,” said Greg Wyler, CEO and
Founder of OneWeb. “While the primary goal is to bridge the digital
divide for rural areas, we recognize the potential for a seamless
Ku-band infrastructure to support other applications as well. The OneWeb
and Intelsat alliance allows each company to leverage the strength of
the other. We believe that access to Intelsat’s global service and
technology footprint, and collaboration on solutions which combine the
benefits of LEO and GEO, will advance our mission.”
Pursuant to the commercial agreement with Intelsat, OneWeb will develop
its platform to provide seamless network interoperability with
Intelsat’s global EpicNG GEO infrastructure and service
offerings. This will enable OneWeb to coordinate the provision of
services over the equatorial regions, where GEO services have spectral
priority, overcoming a major operational hurdle to LEO platforms.
The agreement will also include a firm service commitment from Intelsat
for OneWeb services upon commencement of operations, which is currently
estimated for 2019. Intelsat’s service commitment is in exchange for
exclusivity granted to Intelsat for distributing OneWeb’s services
within the aeronautical and maritime sector verticals, and for certain
U.S. government and oil and gas customer applications. The agreement
also includes granting to Intelsat certain exclusive distribution rights
for connected car and rail customer applications.
Industry consultant NSR forecasts over $7 billion of incremental revenue
industry-wide through 2024 from demand for satellite-based broadband
connectivity services for aircraft, ships, connected devices, cars and
remote villages. These applications are currently, or planned to be,
served by Intelsat’s global fleet of approximately 50 C-band and Ku-band
GEO satellites.
By combining GEO and LEO capabilities, Intelsat will be able to address
specific requirements within the above applications. For example, the
combination will allow Intelsat to extend its broadband mobility
offerings to the polar cap regions, important to some aeronautical and
maritime routes. In addition, Intelsat will be able to complement highly
efficient GEO broadcast capabilities with the high elevation angle
solutions of LEO services for situations where GEO signals might be
blocked, such as in mobility applications in cityscapes. This would
result in unmatched ubiquity for enabling software downloads to vehicles
for the automotive industry. Development of mass market end-user
hardware will further Intelsat’s strategy to deliver high performance,
cost effective and simple access for customers, growing satellite’s
share in the global telecommunications infrastructure.
When fully deployed, OneWeb’s initial constellation of more than 600 LEO
satellites will be the largest satellite constellation in orbit,
providing approximately 10 terabits per second of low-latency,
high-speed broadband to consumers around the globe.
Supporting Resources:
About Intelsat
Intelsat S.A. (NYSE: I) is the world’s leading provider of satellite
services, delivering high performance connectivity solutions for media,
fixed and mobile broadband infrastructure, enterprise and government and
military applications. Intelsat’s satellite, teleport and fiber
infrastructure is unmatched in the industry, setting the standard for
transmissions of video and broadband services. From the globalization of
content and the proliferation of HD, to the expansion of cellular
networks and mobile broadband access, with Intelsat, envision your
future network, connect using our leading satellite technology and
transform your opportunities. Envision…Connect…Transform…with Intelsat.
For more information, visit www.intelsat.com.
About OneWeb
OneWeb’s mission is to enable affordable Internet access for everyone
and is building a communications network with a constellation of Low
Earth Orbit satellites that will provide connectivity to billions of
people around the world. With more than 10 terabits per second of new
capacity, it will transparently extend the networks of mobile operators
and ISP’s to serve new coverage areas, bringing voice and data access to
consumers, businesses, schools, healthcare institutions and other end
users.
Intelsat Safe Harbor Statement:
Certain statements in this news release constitute "forward-looking
statements" that do not directly or exclusively relate to historical
facts. When used in this release, the words “may,” “will,” “might,”
“should,” “expect,” “plan,” “anticipate,” “project,” “believe,”
“estimate,” “predict,” “intend,” “potential,” “outlook,” and “continue,”
and the negative of these terms, and other similar expressions are
intended to identify forward-looking statements and information.
The forward-looking statements reflect Intelsat's intentions, plans,
expectations, assumptions and beliefs about future events and are
subject to risks, uncertainties and other factors, many of which are
outside of Intelsat's control. Important factors that could cause actual
results to differ materially from the expectations expressed or implied
in the forward-looking statements include known and unknown risks. Known
risks include, among others, the risks described in Intelsat’s annual
report on Form 20-F for the year ended December 31, 2014, and its other
filings with the U.S. Securities and Exchange Commission.
Because actual results could differ materially from Intelsat's
intentions, plans, expectations, assumptions and beliefs about the
future, you are urged to view all forward-looking statements with
caution. Intelsat does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150625005228/en/
Source: Intelsat
Intelsat:
Michele Loguidice
Director, Investor
Relations & Corporate Communications
+1 703-559-7372
Mobile:
+1 917-862-7261
Michele.loguidice@intelsat.com
or
OneWeb:
Mike
Carrozzo
+1 630-880-6153
mcarrozzo@fusecommunications.com