Satellite Solutions Worldwide Group PLC (LON: SAT), the global communications company, has negotiated improved terms on a satellite capacity agreement.
The new commercial contract is with one of its key suppliers of satellite capacity, SES Techcom Services.
The contract means improved commercial terms on existing business, plus new satellite broadband capacity to support Satellite Solutions Worldwide's (SSW) sales in its primary European markets.
SSW said the extra capacity is enough to handle some 5,000 new customers, and ensures continuity of supply of bandwidth into early 2019 in the UK and French markets.
The continuity of supply will allow SSW to continue to develop new, faster produces for the business-to-consumer (B2C) market, while part of the capacity is ring-fenced for bespoke connectivity solutions into the business-to-business (B2B) and enterprise markets.
In related news, SSW revealed it has stumped up some £870,000 for the customers and related assets of SES Techcom customer Auvea Ingenierie (Viveole), a provider of satellite broadband services in France.
The Viveole business has around 1,900 residential and business customers, and cements the group’s position as the second largest satellite broadband provider in France.
Viveole more or less broke even in the year to 31 March 2016.
"Committing to our first VNO [virtual network operator] with SES gives us access to more near to medium term capacity, ensuring satellite bandwidth is available to deliver on our future plans and improve services for existing customers,” said Andrew Walwyn, chief executive officer of SSW.
"The VNO is the first significant example of the operational leverage SSW is beginning to enjoy as a result of our acquisitive strategy. The deal will improve margins and increase the capacity and services we can provide, driving growth from existing and future customers. I hope it is the first of a number of deals which will reflect the benefits of the being the largest satellite broadband provider in Europe," he added,
Shares in SSW rose 3.2% to 8.9p on the news.