(August 21, 2008) JSAT Corporation (Head office: Minato-ku, Tokyo; President and CEO: Masanori Akiyama; “JSAT”) today announced an agreement with Stratos Global Corporation (Head office: Bethesda, Maryland, U.S.A.; President and CEO: James J. Parm; “Stratos”) to establish JSAT MOBILE Communications Inc. (“JSAT MOBILE”), targeting expansion of Inmarsat services in Japan and Asian market.
JSAT MOBILE will bring Stratos’ extensive portfolio of mobile satellite services (MSS), including Inmarsat services, to the Japanese market. The Stratos portfolio includes a wide range of value-added services to help customers achieve optimal communications performance and cost efficiency.
Inmarsat services employ 10 geostationary satellites operating 36,000 km above the equator (over the Pacific, Indian and Atlantic oceans) to offer satellite phone, data transmission and distress and safety system services. These services are used by shipping companies, airlines and other mobile users, as well as government agencies and media representatives in areas not covered by landline or mobile phone networks.
As one of the world’s largest providers of Inmarsat services, Stratos has served major customers in Japan for several years. Establishment of the joint venture company between Stratos and JSAT, Asia’s largest satellite communications operator, coincides with the availability of the Inmarsat BGAN (Broadband Global Area Network) 492kbps two-way service from 1Q 2009 at POR(143.5EL). This broadband MSS employs the network of Inmarsat-4 satellites, the final satellite of which was launched successfully on August 19, 2008. Through the joint venture, Stratos aims to expand its scope of operations in Japan by offering the best possible pricing, value-added services and after-sales support.
For JSAT, the establishment of JSAT MOBILE will enable it to achieve full-scale entry into the MSS (L-band) market, supplementing its existing Ku-band and C-band satellite services for fixed telecommunication carriers. JSAT will be able to expand its operational reach as a unique, market-leading satellite communications operator in Asian region, while gaining a foothold for future entry into the global MSS market.
The Japanese MSS market targeted by Inmarsat services is projected to be worth ¥18.8 billion by 2013. JSAT MOBILE is targeting growth in operations to deliver approximately ¥3.3 billion in net sales and ¥0.4 billion in operating income in fiscal 2013.
The combination of a new satellite (Inmarsat-4), new services (Inmarsat BGAN, Fleet Broadband and SwiftBroadband) and a new company (JSAT MOBILE) marks a fresh start for Japan’s MSS sector, which offers considerable future potential.