NewSat awarded $12.5 million Jabiru-2 satellite capacity contract

Contract for the supply of satellite capacity over Australia, Papua New Guinea, Timor Leste and the Solomon Islands

Australian satellite firm NewSat, (ASX: NWT) has signed an $12.5 million (US$11.7 million) contract for the supply of Jabiru-2 satellite transmission capacity over Australia, Papua New Guinea, Timor Leste and the Solomon Islands.

The contract is for three years with the option of extending it for another two years. The deal is with an existing NewSat customer who is a “significant supplier” to mining, energy, maritime and industrial sectors around the world.

NewSat said it would not disclose the customer details at this time due to "commercial reasons".

The Jabiru-2 satellite capacity will allow the customer to enhance its existing enterprise-grade video, voice and data services.

The satellite is scheduled for launch in September 2014. According to a NewSat spokesperson, it will enter commercial service by November 2014.

In January 2014, NewSat announced that it had signed a 15-year contract with a telecommunications company in South West Asia for capacity on the Jabiru-1 satellite. The contract is worth US$160 million.

The telco company, which NewSat didn’t name due to “commercial and competitive reasons”, will use the Ka-band capacity to provide mobile and network services across Pakistan, Afghanistan and the Middle East.

The contract replaces a mutually terminated contract worth US$134 million that was announced in August 2011. In January 2014, NewSat CEO Adrian Ballintine said the contract would provide “greater confidence and security” for customers across the regions.

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