UK-based MSS operator Inmarsat has ordered a satellite to make use of S-band spectrum it was awarded five years ago to deploy in-flight broadband across the EU.
It was jointly ordered with Saudi Arabia’s Arabsat, which will own a separate payload…
UK-based MSS operator Inmarsat has ordered a satellite to make use of S-band spectrum it was awarded five years ago to deploy in-flight broadband across the EU.
It was jointly ordered with Saudi Arabia’s Arabsat, which will own a separate payload called Hellas-sat-3 to grow its 39E DTH hotspot.
By partnering up, Inmarsat expects to pay around US$200m to build, launch and insure its Europasat payload, or half what it would have cost to deploy a standalone S-band bird.
The majority of that cost will be incurred over the next three years, while the group expects to spend an additional US$200m-US$250m over six years to deploy the ground network, subject to gaining national licences from the EU member states.
Inmarsat CEO Rupert Pearce said the group hopes to tap into the rapid take-up of in-flight passenger connectivity services being seen in North America, where telecoms giant AT&T recently unveiled plans to compete with Gogo’s air-to-ground network.
“We believe that the same in-flight connectivity opportunity exists in Europe and that, with the support of EU telecoms regulators, Inmarsat can rapidly bring to market unique, high speed aviation passenger connectivity services to meet this market demand on an EU-wide basis,” said Pearce.
Regulatory roadblocks – and a partly defunct satellite – have weighed on the efforts of Europe’s other S-band licensee Solaris Mobile, which was snapped up by US-based EchoStar earlier this year after struggling to roll out satellite radio services.
The spectrum is tied to strict roll out conditions that requires it to cover 60% of the landmass and 50% of the population of each EU state in 2016. Thales Alenia Space is building Europasat and intends to have it ready to launch at the end of 2016, but it is unclear how Inmarsat’s in-flight services plan will meet those milestones.
Inmarsat said it has received “strong support” from many EU telecoms regulators for its plans, and is in advanced discussions with British Airways to join it as a customer.
Pearce said other airlines have also shown their interest as he pointed to research predicting in-flight connectivity services will be a multi-billion dollar revenue sector by 2020.
Europasat will be broadcasting high-throughput services with 30MHz of S-band frequencies and it will be offered alongside its next generation Global Xpress aviation offering, extending coverage across the globe. It expects the payload will also support next generation emergency network services for public protection and disaster relief.
The MSS operator has previously said it would consider European Investment Bank support to back a Europasat project, after tapping the bank for a €225m facility to back Alphasat, Europe’s largest telecoms satellite.
Arabsat using Greek springboard
Arabsat’s Hellas-sat-3 payload will have 44 Ku-band transponders and will replace Hellas-sat 2 to expand coverage across Europe, Middle East and Africa.
It is one of four satellites that the operator issued an Rfp for earlier this year. Another one of those, Hellas-sat-4, will be jointly owned by Canadian operator Telesat and will also be launched to 39E, a slot that Arabsat picked up last year when it bought Greece’s Hellas-sat.
That €208m acquisition is seen as a stepping stone to help Arabsat realise a strategy it announced in 2012 to become one of the top five operators in eight years.
Speaking after its satellite deal with Inmarsat, Arabsat CEO Khalid Balkheyour said: “This agreement represents the first milestone in fulfilling our commitment to our shareholders to capture additional growth opportunities, especially after the acquisition of Hellas-sat.
“Hellas-sat-3 also represents our commitment to Hellas-sat’s existing and loyal customers and partners in maintaining and expanding their business and continue to establish 39E as one of the leading DTH hotspots in Europe.
“This is the first satellite contract among our announced four satellites’ programme; Negotiations with Inmarsat started last November and was just recently concluded. The flexible design of our programme’s bid in terms of process and selection criteria has allowed for this agreement to realise and to be carved out of the bid.”
