SAS and Commsat join hands targeting China’s network offerings

Telecom services’ provider, Sky and Space Global Ltd (ASX: SAS) has inked an MoU with Beijing based Commsat Technology Development Co., Ltd. in relation to testing and exploring incorporation of the SAS network into the Commsat Internet of Things offering. Commsat is a name known for the development of a Low Earth Orbit (LEO) constellation for providing IoT services in China; and through this move, SAS will be able to penetrate the fast growing Chinese market. Particularly, this will help the group vouch for the offerings in the Greater Chinese region.

The collaborative work primarily entails testing and exploring SAS advanced nano-satellite technology for incorporation into the Commsat network offering while providing enhanced characteristics. The collaboration thus reinforces the strength of the SAS network while both the companies further aim to work closely on additional narrowband communication services in China. The Chinese IoT market is expected to surpass US$231 billion by 2020 from about US$143.4 billion in 2016, witnessing an annual rate of over 20%. In fact, the groups are banking on the Chinese government’s initiative on its IoT roadmap with a focus on narrowband-IoT infrastructure under a national strategy with enhancement of the network to have over 600 million connections and a total number of 1.5 million base stations by 2020.

SAS was seen to be trading flat on June 22, 2018 (before market close) despite the news.


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