A few days after raising A$10 million, Sky and Space Global (ASX: SAS) has progressed an earlier agreement with Globalsat Group to combine their respective technologies to offer commercial machine-to-machine (M2M) and internet of things (IoT) services to customers in Central America and South America.
The operational evaluation agreement between the parties formalises the final steps towards integrating and implementing Sky and Space’s nanosatellite communications technology with Globalsat M2M and IoT services in the region.
As part of the arrangement, Sky and Space and Globalsat will build a simulated service environment to test the technologies’ compatibility and then progress to assessing the model in the field.
Once complete, the results will be used to secure a binding agreement which the parties anticipate will be achieved in the next two months.
“We started our relationship with Globalsat a year ago in Washington DC and today we are reunited at another global satellite industry event to take another step toward providing mobile connectivity and IoT services in Latin and Central America using our satellite network,” Sky and Space chief executive officer Meir Moalem said.
“Currently, 10% of the population of Latin America has no access to a mobile connectivity, preventing 64 million people from enjoying the socio-economic benefits that mobile connectivity can bring,” Mr Moalem noted.
He added that poor connectivity in certain regions can impact business revenue opportunities. However, he said by rolling out Sky and Space’s nanosatellite communications technology with Globalsat’s M2M and IoT services, businesses in the region have access to new revenue and cost-saving opportunities.
Testing of the combined technology began in February. According to Sky and Space, once the agreement has been finalised, it will have access to new markets in Central and South America, while Globalsat will be able to expand its service offering into those areas that previously had poor connectivity.
Nanosatellite communications technology
Sky and Space is developing 200 nanosatellites, which it hopes to deploy by 2020. Collectively known as the Equatorial constellation, the nanosatellites are anticipated to offer communications network coverage to even the world’s remotest areas.
The company claims these areas will have access to voice calling, instant messaging, data and images across a secured network.
In late September last year, Sky and Space launched its first three nanosatellites known as the 3 Diamonds. The successful launch led to the world’s first secure voice call using the nanosatellite medium.
About a month later, Sky and Space undertook another “world first” by completing a financial transaction using the 3 Diamonds.
Since then, the company has secured a number of collaboration deals and trials with potential partners for its technology.
By mid-afternoon trade, Sky and Space’s share price was up 1.6% to A$0.127.