Archive for the ‘Gilat Satellite Networks’ Category
LightSquared Delivers Notice To Inmarsat Activating The Phase 1 Of Their Contract
LightSquared claims to be the nation’s first wholesale-only integrated wireless broadband and satellite network. Recently, the company announced that it has delivered notice to Inmarsat activating Phase 1 of a cooperation agreement between Inmarsat and LightSquared.
The cooperation agreement was originally signed in December 2007. According to the cooperation agreement, a phased plan was designed by Inmarsat and SkyTerra , now known as LightSquared. The key goal of this phased plan was to address the mounting demands of wireless broadband. With this agreement, LightSquared is able to avail superior operational flexibility to deploy its 4G-LTE integrated terrestrial and satellite network.
In order to augment the spectrum contiguity for implementing Phase 1, Inmarsat made a decision to instantly start a process of transition to a modified spectrum plan. The company is expecting to complete the process within 18 months.
During implementation of Phase 1, LightSquared will give out a series of payments to Inmarsat that comes around $337.5 million (USD). Some of the details are as follows:
• Upon exercise, LightSquared was able to make an initial payment of $81.25 million i.e., $31.25 million in addition to the first installment of $50 million.
• Apart from the initial payment of $81.25 million, LightSquared is planning to pay $40 million in every three months until the payment completion of the final installment of $40 million. The final installment is scheduled 15 months from the set off date.
• In the Phase 1 completion date, the company is planning to pay another $56.25 million.
Furthermore, LightSquared is having a choice to implement Phase 2. This will power its network with superior capacity. The company is free to exercise Phase 2 at any time through January 1, 2013. For this to happen, Inmarsat would make added spectrum available at an annual cost of $115 million per year. The Phase 2 process will take 30 months following the exercise by LightSquared of the Phase 2 option.
Gilat to Receive Over $24 Million from its investment in Axolotl
Gilat Satellite Networks Ltd. announced that it is to receive more than $24 million in cash proceeds from the merger of Ingenix and Axolotl. Ingenix, a leading health information technology and services company announced on August 16, 2010 that it is acquiring Axolotl, a leading provider of health information exchange services. As part of Gilat’s investment policy, Gilat invested approximately $4.5 million in Axolotl over 10 years ago. During the global economic downturn of 2000 and 2001, Gilat wrote off this investment.
Under the terms of the merger agreement, Gilat is to receive approximately $24 million immediately and subject to certain standard escrow conditions, may receive an additional $3 million in one year.
Gilat Satcom Expands the Activities of its Mobile Satellite Services Group in Africa
Gilat Satcom, a leading provider of fixed and mobile satellite communication services delivering advanced communication solutions to customers operating beyond the reach of traditional telecommunications, today announced that the company is reinforcing its activities throughout Africa.
Gilat Satcom Mobile Satellite Services (MSS) is widely active today in the Middle East, Central Asia, and Eastern Europe. The company is the market leader for Fixed Satellite Services (FSS) and provides backbone internet connectivity in over 25 countries in Africa. The company perceives an increasing demand for its mobile satellite products and services throughout Africa and is expanding operations.
Gilat Satcom MSS will market two lines of products. The first line will provide a variety of voice and data solutions over the Iridium satellite network. The second will provide a host of solutions for voice and data on broadband over the Inmarsat satellite network. In addition, the company will market MSS applications for sea, land, and air communications including a new application for management of airplane communications and another for fleet management. Gilat Satcom offers competitive pricing and unique capabilities to address unusual mobile communication needs along with a professional customer service team operating 24/7 to provide customers with the outstanding technical support.