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  • 7/23/2019 INMARSAT 5s

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    Inmarsat to purchase fourth Inmarsat-5 satellite from Boeing

    7 October 2013 Inmarsat(LSE:ISAT.L), the leading provider of global mobile satellite

    communications services, today announces that it has triggered an option to purchase a fourthInmarsat-5 satellite, under its existing contract with Boeing Satellite Systems International, Inc.(Boeing). The programme schedule from Boeing has a satellite delivery date of mid-2016.

    The fourth Inmarsat-5 satellite will have a dual strategic role. Initially the satellite will serve toprovide an early available spare in the unlikely event of a launch failure of any of the first threeInmarsat-5 satellites. As a result, Inmarsat will be able to achieve global service launch for GlobalXpress (GX) more rapidly than if a replacement satellite were only commissioned following a launchfailure. Where customer commitments and demand for GX requires a global network to be in place,the fourth satellite will therefore insure the global network delivery date and this measure ofredundancy is expected to encourage further commitments to GX.

    In the event the satellite is not required as a launch spare, Inmarsat is developing an incrementalbusiness case to support the launch of the fourth satellite to increase capacity and strategicallyenhance network coverage.

    Rupert Pearce, Inmarsats Chief Executive Officer, said, Our confidence in the Global Xpressprogramme and our target market opportunities continues to grow. We have signed multiple pre-saleagreements and received significant expressions of interest, some of which are tied to the completionof global coverage with three satellites. This has encouraged us to not only move to a strategy tophysically insure our global service date with a fourth satellite, but also to consider incrementalopportunities that have emerged and could drive enhanced returns via the launch of a fourth satellite.

    Our decision announced today reflects the fact that we are already close to incrementalopportunities that could justify a fourth satellite, but our highest priority is our coming launchcampaign and we will take time to develop these plans in the coming year. In the meantime, ourtarget markets can now be confident of our commitment to the GX global service delivery schedule.

    Boeing will immediately begin construction of the fourth Inmarsat-5 satellite. The total cost of theoption and certain related expenditure will be between US$220m and US$250m. In the event thefourth satellite is required as a spare, the impact on total capital expenditure over the period to 2016will be broadly neutral as the insurance proceeds from any loss would be expected to cover theconstruction, launch and insurance costs for the fourth satellite.

    GX will be the first globally available high-speed broadband network. It will offer the uniquecombination of global coverage from a single operator, consistent higher performance of up to50Mbps, and the network reliability for which Inmarsat is renowned. Based on Ka-band technology,

    GX will consistently deliver higher performance through more compact terminals at a lower cost thanexisting VSAT services, making it accessible to many more users.

    For Further Information

    Jonathan SinnattHead of Corporate Communications+44 (0)20 7728 1935

    [email protected]

    http://www.inmarsat.com/http://www.inmarsat.com/http://www.inmarsat.com/mailto:[email protected]:[email protected]:[email protected]://www.inmarsat.com/
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    About InmarsatInmarsat plc is the leading provider of global mobile satellite communications services. Since 1979,

    Inmarsat has been providing reliable voice and high-speed data communications to governments,enterprises and other organizations, with a range of services that can be used on land, at sea or inthe air. Inmarsat employs around 1,600 staff in more than 60 locations around the world, with apresence in the major ports and centres of commerce on every continent. Inmarsat is listed on theLondon Stock Exchange (LSE:ISAT.L). For more information, please visitwww.inmarsat.com.

    The Inmarsat press releasenewsfeedis on Twitter @Inmarsatnews and corporate updates are on@Inmarsat_plc

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