Inmarsat to invest US$1.2bn in Ka-band network

06-08-2010

Inmarsat has agreed a contract with Boeing for the delivery of three state-of-the-art 702HP Ka-band satellites which, through a new network, will deliver speeds of up to 50 megabits per second (Mbps) to customers.

The satellites will make up the new Inmarsat-5 (I-5) constellation that will enable the company to deliver a unique global high-speed mobile broadband service offering.

With operations expected to start in 2014, the Inmarsat-5s will support a next generation global service, called Global Xpress™, which will target a US$1.4 billion incremental market for VSAT services.

Growing markets

Global Xpress will address the established growing markets for VSAT services in the maritime, energy and government sectors, with further growth potential in developing markets such as the aeronautical sector.

Inmarsat will target US$500 million of annual Ka-band revenues five years after the global service is launched.

Under a separate arrangement, Boeing has agreed to become a distribution partner for Inmarsat;s Ka-band and L-band services, and has committed to capacity purchases representing more than 10 per cent of Inmarsat's target Ka-band revenues in the first five years after launch.

Unparalleled speeds

Inmarsat estimates the total cost of the I-5s and Global Xpress will be US$1.2 billion over four and a half years, incorporating the fixed cost of the satellites, as well as the cost of additional ground network infrastructure, product development, launch services and insurance.

Chairman and chief executive of Inmarsat Andrew Sukawaty said: "This is a new investment for growth. With the Global Xpress network, we will be the first operator to offer global broadband coverage, offering unparalleled speeds and bandwidth to customers in remote locations around the world.

"Global Xpress will be faster and less expensive than current Ku-band market offerings, it will be delivered to smaller and cheaper terminals and be the first offered on a seamless, global, end-to-end basis with high-quality of service. Picture 50Mpbs services to a ship or aircraft, and 10Mpbs to an antenna the size of an iPad (20cm).

"The Inmarsat-5s will also complement our existing global L-band services, allowing us to offer unique hybrid packages using both networks, giving users unprecedented levels of resilience and reliability in remote and harsh environments."

Inmarsat Plc, press release