The communications provider Inmarsat will invest 750 million pounds in a new fleet of high tech satellites. This commitment is being reported despite having H1 lackluster performance out of their core business trading.
Inmarsat will buy three Ka-band satellites from Boeing in an effort to provide high-speed mobile broadband service for people covering the globe. The company already provides telephony services to ships, airplanes and the military.
The investment in the saltellites has been highly anticipated by several who saw the demand for data services to increase and the need for phone services decreasing.
The announcement was welcomed by the exchange, and the share value rose 28.5 p to 741.5 p.
“Management did a good job of convincing people this was not a “build it and they will come” investment plan. The emphasis was very much on it being customer demand driven,” said Mark James, analyste at Liberum Capital.
With the project commencing in 2014, Inmarsat expects to realize 500 million in annual revenues just 5 years following the launch. Boeing has prepared already and has purchased 50 million dollars worth of capacity for that period.
Very limited speeds of the broadband service is the driving force behind the expansion. The new Ka-band spectrum will be able to transmit up to 5.0 megabytes of data per second to the world’s most remote areas.
In general, revenues for Inmarsat rose just over 12 per cent, while mobile services on land revenues rose 14 per cent. The company provided services to rescue workers and news crews during the Haitian earthquake.