4th Sep 2006 07:03
Inmarsat PLC04 September 2006 Press release Inmarsat accelerates entry into hand-held satellite phone market with ACeScollaboration • Enables immediate hand-held service introduction • Triggers decision to launch third Inmarsat-4 satellite London, September 4, 2006, Inmarsat plc (LSE: ISAT) the leading global mobilesatellite services operator and ACeS International Limited (ACeS), the leadingAsian hand-held voice satellite services operator, have today announcedcollaboration arrangements to offer low-cost hand-held and fixed voice services,initially in the Asian market with extended coverage expected in early 2007 bycombining satellite resources. Under the collaboration arrangements, Inmarsat will assume responsibility forsatellite and network operations, wholesale service provision, as well asproduct and service development. ACeS will focus on distribution of MSS productsin the important Asian land and maritime markets and will become a distributorof Inmarsat's BGAN services. Inmarsat plans to expand geographic coverage for the hand-held service in early2007 using the existing Inmarsat-4 satellite covering Asia and further intendsto deploy a fully-global service within two years. To enable expanded coverageusing the existing Inmarsat-4 satellites, Inmarsat will undertake a process ofnetwork upgrades and an accelerated modernisation of the ACeS R190 hand-heldsatellite phone. To support a seamless global hand-held service and to achieveglobal coverage for BGAN and new broadband maritime and aeronautical services,Inmarsat plans to launch the third Inmarsat-4 satellite and will target a launchdate in late 2007. Andrew Sukawaty, Chairman and CEO of Inmarsat commented, "This collaborationwith ACeS accelerates our entry into the hand-held market and begins to realiseone of the growth opportunities we have been targeting. Leveraging ourInmarsat-4 satellites and network of distribution partners, we expect to rollout a global Inmarsat hand-held service within two years." Inmarsat believes the global hand-held market is worth approximately $350million today in wholesale revenues and is growing. Following the introductionof a global hand-held service, Inmarsat expects to target a market share of atleast 10% by 2010. Adi Adiwoso, Chairman and CEO of ACeS said, "By collaborating with Inmarsat wehave positioned ACeS for new growth. ACeS will leverage its strong regionalpresence to introduce Inmarsat BGAN services to its channels and renew focus onhand-held sales. With the continued support of strong national serviceproviders, PSN in Indonesia, PLDT in the Philippines and ARS in Thailand, wehave a bright future and a significant market opportunity." Andrew Sukawaty added, "Today Inmarsat takes its first steps in launching itsglobal hand-held satellite phone service. Our move into hand-held means thatdistributors and end-customers choosing the new Inmarsat voice service willbenefit from Inmarsat's long standing reputation for service reliability andquality. Furthermore, through our Inmarsat-4 satellite fleet, we will be theonly provider today offering continuity of service on a global basis through theend of the next decade." Collaboration agreement Going forward Inmarsat will record wholesale revenue and active terminals fromthe existing ACeS hand-held customer base and expects initial annualised revenuearising from the collaboration to be in the range of $3 to 5 million. In connection with the globalisation of the hand-held service, Inmarsat expectsto incur capital expenditures of approximately $40 to 45 million over two yearsfor ground infrastructure and modernisation and development of the ACeS R190satellite phone. Launch of third Inmarsat-4 satellite Inmarsat has today announced its intention to launch the third Inmarsat-4satellite. This satellite is already fully-built and tested and is currently instorage. Inmarsat expects that the cost of launching the third satellite will bein the region of $130 to 150 million, primarily made up of the launch vehicle,launch insurance and the cost of an additional earth station to be located inthe United States. Inmarsat believes the launch of the third satellite will beimportant to the success of a global hand-held service, but further believesthat global Inmarsat-4 coverage will enhance the BGAN service and provideincremental opportunities for new broadband maritime and aeronautical servicesto be launched on the Inmarsat-4 satellites. About Inmarsat: Inmarsat plc (LSE: ISAT) is the leading provider of globalmobile satellite communications. Since 1979, Inmarsat has been providingreliable voice and high-speed data communications to governments, enterprisesand other organisations, with a range of services that can be used on land, atsea or in the air. The company's services are delivered through a global networkof 260 partners, including the world's leading telecoms groups, operating in 86countries. For the year ended 31 December 2005, Inmarsat plc had total revenueof $491.1 million and profit before tax of $95.5 million. More information canbe found at www.inmarsat.com. Contact Information: Simon Ailes Tel: +44 (0)20 7728 1518 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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