Through a deal with The Boeing Company (NYSE:BA), Inmarsat (LSE: ISAT) plans to deliver three state-of-the-art 702HP Ka-band satellites - collectively known as the Inmarsat-5 constellation - to provide a global high speed mobile broadband service.
Inmarsat-5 is expected to come online in 2014, and it will support a next generation global service, known as ‘Global Xpress’, which will target a US$1.4bn incremental market opportunity.
Global Xpress will address the established and growing markets for VSAT (Very Small Aperture Terminal) services in the Maritime, Energy and Government sectors. The company sees further growth potential in developing markets such as the Aeronautical sector.
According to Inmarsat, Global Xpress will deliver “seamless global coverage and unprecedented mobile broadband”, with speeds reaching up to 50MB/s to small customer terminals, from 20-60cm in size.
“With the Global Xpress network, we will be the first operator to offer global mobile broadband coverage, offering unparalleled speeds and bandwidth to customers in remote locations around the world,” Inmarsat chairman & chief executive Andrew Sukawaty said.
“Global Xpress will be faster and less expensive than current Ku-band market offerings, delivered to smaller and cheaper terminals and be the first offered on a seamless, global, end to end basis with high quality of service.”
Inmarsat is targeting US$500m in annual Ka-band revenues within 5 years after global service launch.
Additionally, under a separate deal, Boeing will become Inmarsat’s distribution partner, for both Inmarsat's Ka- and L-band services, and it has pre-committed to buy capacity representing more than 10% of the targeted Ka-band revenues.