The agreement establishes non-exclusive commercial terms for Globalsat to distribute, sell, market and promote SAS’ narrow-band connectivity solutions and products to customers and end-users in Latin America.
READ: Sky and Space Global begins construction of world’s first nano-satellite communications network
SAS managing director & CEO Meir Moalem said the company was pleased to have finally secured a definitive supply agreement with Globalsat.
Moalem said: “This marks a huge milestone achieved for us on the pathway to commercialising our technology.
“We have been working very closely with Globalsat for a while now and look forward to seeing how this agreement unfolds.”
Substantial growth potential
SAS expects to generate revenues of US$5 million within the first two years of the agreement, based on a conservative Globalsat estimate.
The satellite company also recognises substantial growth potential due to the extensive amount of current and incoming Globalsat clients across the energy, government, defence, mining and agriculture sectors.
The Latin American market consists of 64 million people, or 10% of the continent’s population, with limited or no access to mobile connectivity services, which represents further growth potential.
Sales to begin immediately
Globalsat managing director Alberto Palacios said: “We are excited to be moving forward with Sky and Space Global and believe that we have the opportunity to significantly improve our service offering with SAS’ nano-satellite technology on board.
Sales will begin immediately in mid-2019 after the launch of the first batch of “pearl” satellites and the successful completion of in-orbit testing and designation as fully operational.
The agreement has an initial two-year term from the date the SAS network is operational, including an option to extend, and both parties have agreed to negotiate and execute a more definitive agreement within 60 days.
Pricing for machine-to-machine and internet-of-things services has been settled in the initial agreement.
The agreement may be terminated based on standard termination events such as insolvency, or if the SAS network does not achieve yet to be agreed KPIs.
200 more satellites by 2020
SAS is a satellite company with European and Israeli centres of aerospace, satellite and software industry experts.
The company’s core business is to operate a communication infrastructure based on nano-satellite technology with sophisticated software systems that will deploy, maintain orbit control and handle the communication network in space to provide global coverage.
SAS launched its first three “diamond” nano-satellites into space in June 2017 and is preparing for the launch of a constellation of 200 pearls by 2020.