Abu Dhabi's Yahsat takes stake in US low-cost satellite solutions firm eSAT Global
Deal with eSAT will allow low-cost direct-to-satellite IoT services to be provided
Dubai: The Abu Dhabi satellite company Yahsat has taken a minority stake in eSAT Global Inc., an Internet of Things connectivity provider. The latter’s solutions will offer low-cost direct-to-satellite IoT services to the market. (The value of the deal and the percentage of stake bought has not been revealed.)
The Yahsat subsidiary Thuraya also has reached an agreement with California-based eSAT, under which the latter will provide Thuraya – which is into mobility solutions – with access to an end-to-end Low Power Wide Area Network IoT system.
“Through this partnership, we will be able to serve our customers even more effectively by offering smart, reliable, and customizable solutions that will unlock new and exciting opportunities across a range of sectors,” said Ali Al Hashemi, CEO at Yahsat Group, which is listed on ADX. “We look forward to working closely with eSAT who bring a track record of launching successful communication products and services to market. We are confident that together we will create a powerful offering to our customers and partners.”
We look forward to building on our partnership with Yahsat to deliver LPWAN connectivity to Yahsat’s existing customers and many more new users for whom satellite-enabled connectivity has not previously been an option
Why IoT
The global IoT market is forecast to grow at a CAGR (compound annual growth rate) of 22 per cent over the next five years to $525 billion. Within this, the satellite IoT business could generate a cumulative $6 billion over the same period. “The investment in eSAT represents an opportunity to participate in a fast-growing sector that is still significantly under-penetrated, and is closely aligned with Yahsat’s strategy of prioritizing growth sectors,” the company said.
As for Thuraya, in tandem with eSAT, there is a plan to launch an IoT system and portfolio, which could start commercial activities by Q4-2023. “Our partnership has been a long time in the making, going back several years when we demonstrated the suitability of Thuraya’s satellites for IoT," said Rick Somerton, CEO and President of eSAT Global. "We appreciate the efforts of both teams of professionals in getting us to this exciting milestone."
The partnership with eSAT will enable Thuraya’s service partners to address critical IoT requirements in key categories, including ‘smart’ agriculture, environmental monitoring, digital maritime and cold-chain tracking.
Designed specifically for IoT and low data rate applications, the new platform will leverage Thuraya’s existing (T2 & T3) and future MSS GEO satellites, including the Thuraya 4-NGS, Yahsat’s forthcoming next generation L-band satellite. This high-capacity platform will enable millions of devices to be serviced simultaneously in cost-effective ways.